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In this week’s blog post, we’re going to focus on some solid and positive news. From June 2022 to December 2022, Canada has seen inflation decline, with just one month of inflation staying flat (October). The inflation rate is now at 6.3%, down from its June 2022 peak of 8.1%. Canadian inflation is now lower than the U.S., Singapore, Australia, Germany, and the U.K. Inflation in Argentina, Turkey, and Italy is at 95%, 64%, and 11.6% respectively; a snapshot of how bad the situation is in some industrialized countries. We’ve still got a long way to go, as inflation was at 5.1% in January of last year, but the December figure was very positive news. The BOC will want to see inflation return to its 1-3% range as soon as possible. Whether or not this decline is healthy enough, long enough, and sustainable enough remains to be seen – but the BOC should see the progress that’s been made as promising. Economists called the decline an “encouraging sign.” The big anchor that pulled inflation down in December was the fall in gas prices, which declined some 13% from November’s figures. The pace of food price increases has also thankfully begun to slow, very good news.

The BOC’s decision to hike rates by a further 25 basis points should add downward momentum to inflation. Some believe that the 25 basis point increase was necessary to help consolidate the reduction in inflation that we’ve seen. Economists are pointing to huge labour shortages pushing up wages as one of many factors which continue to contribute to the slower than desired pace of inflation falling. There are a good deal of experts who see this last rate hike as the final extent to which the BOC is willing to cool the economy and raise the price of capital. How the Bank of Canada makes its next moves will be important in judging how the real estate market will fare in Q2 and beyond. The Canadian economy is in mixed shape, and the latest rate hike isn’t going to help. with economists  warning that this could put hundreds of thousands of jobs at risk. The rate hike will likely lead to an increase in borrowing costs for businesses and consumers, which could slow down economic growth and lead to job losses. The rate has already been raised seven times since 2017, and each increase has made it more difficult for businesses and consumers to borrow money.

The rate hike could also lead to a decline in the housing market, as higher interest rates make mortgages more expensive. This could lead to a drop in home prices, which could hurt homeowners and the construction industry. The rate hike could also lead to a decline in the stock market, as investors are likely to pull money out of equities and move it into bonds, which are considered safer investments when interest rates are rising. The Bank of Canada’s rate hike could also have a negative impact on the Canadian dollar, as higher interest rates generally make a country’s currency more attractive to investors. This could lead to an appreciation of the Canadian dollar, which would make Canadian exports more expensive and less competitive on the global market. Overall, economists are warning that the Bank of Canada’s decision to raise interest rates could have a significant impact on the economy and job market. They are urging the bank to be cautious and consider the potential consequences before making a decision.

Yes, the market has turned to become more difficult for sellers, and inflationary pressures continue to put upward pressure on interest rates; but the underlying fundamentals to our real estate market are strong. Over the long term, price growth should return. That being said, the Bank of Canada has set an inflation target of 2% per year, and has historically been successful in keeping inflation within this range. The Canadian real estate market has experienced significant growth in recent years, and many experts are predicting that this trend will continue in 2023. According to the Canadian Real Estate Association, the national average home price is expected to increase by 3.6% in 2023, with the strongest growth occurring in the western provinces. However, it is important to note that the real estate market can vary significantly from region to region, and it is always a good idea to research local market conditions before making any investment decisions. One reason for the expected growth in the Canadian real estate market is the relatively low interest rates that have been maintained by the Bank of Canada in recent years. Low interest rates make borrowing more affordable, which can drive demand for housing. However, it is important to note that interest rates are expected to start increasing in the coming years, which could impact the housing market. It is always a good idea to consider the potential impact of interest rate changes on your mortgage and overall financial plan.

Another factor contributing to the strength of the Canadian real estate market is the country’s strong economic fundamentals. Canada has a stable political and legal system, and a diverse and resilient economy. These factors make it an attractive place to invest in real estate. The country’s GDP has been growing consistently in recent years, and unemployment rates remain low. These indicators suggest that the economy is in good shape, which can provide a foundation for a healthy real estate market. Demographic trends are also driving demand for housing in Canada. The country’s population is growing, and the number of households is expected to increase by over 1 million by 2023. This increase in households will drive demand for both rental and ownership housing. The rental market in particular is expected to see strong demand in the coming years, as more Canadians opt to rent rather than buy a home. As of January 2023, the state of housing starts in Canada is strong. According to the Canada Mortgage and Housing Corporation (CMHC), the annual rate of housing starts in Canada has been steadily increasing since the beginning of 2021, and is expected to continue to rise in the coming months. This trend is being driven by strong demand for housing, as well as a robust economy. The CMHC also reports that the demand for new housing units is being driven by sustained continued population growth and household formation, as well as a need for rental housing. The rental market in particular is expected to see strong demand in the coming years, as more Canadians opt to rent rather than buy a home.

There are also a number of government initiatives in place to support the housing market in Canada. For example, the First-Time Home Buyer Incentive program provides financial assistance to eligible first-time home buyers, which can help to make homeownership more accessible. Additionally, the government has implemented measures to help stabilize the housing market, such as tightening mortgage lending rules to ensure that buyers are able to afford their homes. It is important to note that there are also potential challenges on the horizon for the Canadian real estate market. For example, some experts are predicting that the market may cool off in the coming years due to rising interest rates and other economic factors. Additionally, there are concerns about housing affordability in some parts of the country, particularly in larger cities where demand for housing is high. Overall, the prospects for the Canadian real estate market in 2023 are positive, with strong economic and demographic fundamentals driving demand for housing. While there are potential challenges on the horizon, such as rising interest rates, the market is expected to continue to grow in the coming years. As with any investment, it is important to carefully consider your own financial situation and risk tolerance before making any decisions about buying or investing in real estate.

Mortgage stress tests were introduced some years ago as an added security to protect the overall lending market from risky first time home buyers. Stress tests were intended to prove that first time buyers would be able to pay their mortgages in the event of their borrowing rates going up. There have been calls to scrap stress tests, or ease qualifying rates, but the Office of the Superintendent of Financial Institutions has declined to do this. It has opted to keep stress tests in place without any changes to their qualifying criteria. The minimum qualifying rate will stay at the greater of the mortgage contract rate plus 2% points, or 5.25%. Buyers who can put together 20% or more for a down payment don’t have to worry about the stress test, a benefit with average home prices starting to decline. OSFI officials have resisted calls to lower or eliminate stress tests, and complain that doing so would be “speculative” on mortgage rate cycles. Regulators see stress tests as a financial stability mechanism, not a tool to lower housing or increase housing demand.

Turning now to the U.S. inflation rate and actions by the U.S. Fed – a new admission by Fed Chair Jay Powell needs to be aired. Powell was asked whether the Fed would consider raising its 2% inflation target. Powell was quick to respond definitively in the negative, saying that the Fed would not consider doing so “under any circumstances.” However, as he wrapped up his answer, Powell admitted that raising the inflation target might “be a longer-run project at some point“. This admission lines up with what some market analysts and experts had been hinting at, that a 2% inflationary target in the current macro economy is going to be very hard to manage. The higher the central banks raise their rates, the more damage they will inflict on the underlying economy – and rate hikes have not yet resulted in a steady and consistent decline in inflation. The markets immediately took this as a dovish signal, even as Powell raised rates by 50 basis points and hinted at more rate hikes on their way next year.

Wall St. billionaire Bill Ackman was quick to tweet that the 2% inflation target was no longer “credible.” Ackman pointed to de-globalization, alternative, higher priced energy, the demand for higher wages, and supply chain issues as all pointing to the need for a higher inflation target. He suggested the Fed would eventually be forced to raise its target in the near future. A higher inflation target would simply be a capitulation to higher prices, and less pressure on the bank to respond hawkishly with higher rates. This sentiment could quickly catch on at the Bank of Canada and would have implications to Canadians. Ackman tweeted further that he doesn’t see inflation coming back down to 2% in the U.S. without a “deep, job-destroying” recession. Highlighting the extent of the inflationary problem in the U.S.

In October we published an infographic outlining exactly how the Bank Of Canada’s rate increases were impacting Canadians with variable mortgages. With the recent news from the Bank Of Canada hiking rates another 0.5% (50 BPS) these impacts are even greater.

In late October of last year, mortgage interest rates were in the low to mid 2% range. Based on a $800,000 mortgage, an amount not foreign to many people given how high house prices were, a 2.05% mortgage would cost homeowners just over $3,400 a month. Let’s say that a couple of two professionals in their late 20s, making $80,000 each in Toronto, took advantage of low rates in October 2021 and just bought a townhouse in Toronto and held an $800,000.00 mortgage. Their combined take home pay would hover in and around $9,000 a month. After utilities, insurance, property taxes, and basic bills, their household spending would eat up a little over half of their budget. If that couple were in a variable mortgage today, they would be paying $5,142,00 for the same mortgage amount or paying $1735.00 extra a month from when they first purchased in October 2021.  

Very few people will be able to stomach those price increases. Our housing market has been put in a position where monthly mortgage payment costs have increased by 51%, forcing that young couple in our example above to come up with an extra $20,820 a year AFTER taxes just to maintain their financial budgets and mortgage payments. This is a recipe for pain. It also explains why predictions of a recession are increasing.

What does this all mean? Homeowners will have a lot less cash for spending, investing, and saving. The good news is that Canadians are prudent and smart with their money (generally). At the end of the day, rates were never going to stay ultra-low forever. But there’s a big difference in a graduated rate increase cycle, and one where the central bank hikes rates 7 times in 11 months. The big lesson in all of this is that central bankers are not infallible, that they’re human and make mistakes too, and that the job of dealing with and forecasting economic changes is very, very hard. Unfortunately, Canadians with Variable mortgages are going to continue to feel the impact and struggle with producing the funds needed to cover their increase in mortgage payments.

If this is your situation, call Tembo Financial to see how we can help!

Tembo has been the go-to for thousands of customers across southern Ontario for second or third private mortgages for years. We’ve moved with extreme speed to help our customers receive their 2nd or 3rd mortgage funds. We’ve helped accommodate our clients’ diverse needs creatively and thoughtfully. And all with great and consistent customer service. We’re pleased to announce that we are now providing clients with 1st private mortgages, to help them achieve their dreams of home ownership. We are offering competitive prices and rates, speedy service, simple and quick approvals processes, and great customer service – as always. In today’s market, with ever higher big bank mortgage rates, slow bank mortgage approvals, and the need for flexibility, Tembo is well positioned to help you.

Inflationary pressures, rising interest rates, and uncertainty is slowing the amount of overall mortgage debt growth in the broader economy. New mortgage loans at the big banks dropped by 8% in the 2nd quarter, with bank refinancing seeing the biggest drop; by over 13% in the same timeframe. Canada Mortgage Housing Corporation data is showing that more consumers are turning to fixed rate, stable mortgages with shorter time commitments – given they’re wary of higher rates coming down the track in the near term. If you want to read more about the history of inflation, interest rates, and our track record of solid predictions on where rates have gone (and will go), please read our blogs and subscribe to our popular newsletter here. Crucially, though, the CMHC released data showing that more people are being declined for mortgages at Canada’s big banks. Big bank loan qualifications and stress tests are really starting to bite in an environment of ever higher interest rates and high inflation. If you’ve been declined for a big bank mortgage and think you’ve run out of options, please get in touch with us and consider a private 1st mortgage with Tembo.

ReMax recently released its predictions for the national housing market for next year. They see prices falling by some 3% nationally next year, at which point the market will return to a more ‘balanced’ state, without the same degree of ups and downs that we’ve seen due to COVID and inflation. The ‘wildcare’ to ReMax’s prediction was how high the Bank of Canada would take interest rates. Inflation hasn’t gone down by a significant margin in three months, and the language of the Bank of Canada Governor Tiff Macklem hasn’t softened up. The Bank of Canada has repeatedly said that they don’t see enough evidence of a healthy down trend in inflation for us to have reached the ‘peak’ of higher rates. So the reality is that rates are likely going up at least one more time over the next few months. In an environment with ever higher rates, you need to consider your options, and now, you should consider Tembo for your first mortgage.

Despite all of the massive rate hikes unleashed on the economy by the Bank of Canada, the national inflation rate remained unchanged at 6.9% in October; the same level it was in September. If we consider the 7% inflation rate in August, a picture of stubbornly persistent inflation emerges. Three months of steady price growth is not healthy, and shows why the Bank of Canada has been so adamant in sticking with potent rate hikes. In recent media appearances and speeches, the Bank of Canada Governor Tiff Macklem made it clear that we’re not yet out of the “tightening phase” drawing to a close. The BOC believes that inflation will remain high for the rest of 2022, and they expect it to start “coming down” next year. There’s nothing super intellectual about that prediction. As we enter the peak of Christmas season, aggregate demand is going to rise and many retailers and businesses will add workers and increase hours to keep pace with shopping, and this will likely add inflationary pressures. This is what they tell us every year in any case!

In response to all of this, we continue to hear that more rate hikes will be necessary. Given that inflation hasn’t increased, which is very solid news, money market expectations are of a 25 basis point hike right before the year wraps up; at the Bank of Canada’s December 7th meeting. Some expect another 50 basis point increase, as we saw in October, but that is the minority view by far. The BOC is now increasingly voicing more concern over the potential of economic growth slowing down, especially in the fourth quarter. This is a telling admission given the sheer volume of shopping that is traditionally a buoyant at this time of year. A former Bank of Canada heavyweight has come out with strong warnings on the impacts of the rate hikes that we’ve seen. Former Bank of Canada Governor Stephen Poloz was recently interviewed and believes that the full effects of rate hikes haven’t been felt, and that they will be “even more powerful” than many anticipate.

Poloz was speaking at a conference hosted by Ivey Business School. He made the poignant observation that increased debt loads that have built up over the years makes the economy and the society more “sensitive” to higher debt costs today than in previous hiking cycles. Poloz defended his colleagues by agreeing that many of the underlying causes of inflation (commodity prices, external supply chain shocks) are and remain “transitory”. Poloz sees inflation coming down to 4% in the near future. Finally, the former BOC Governor emphasized that it will take time for higher debt servicing costs to fully weigh down on aggregate demand and on credit availability. Poloz’s comments echo the Bank of Canada’s anxieties over expectations of an deep economic slowdown preparing to bear down on the economy next year.

The news is still sinking in and has reverberated across the political spectrum, the real estate community, and the environmental movement: Ontario is proposing to build 50,000 homes in the Greenbelt. The decision is another episode in a long saga that started when Doug Ford was recorded in a 2018 campaign speech promising that if elected, his government would open up the Greenbelt to development. Ford won, but avoided the issue in his first term, deflecting the intense criticism he received for the proposal. Having won a second term decisively, Ford has now backtracked. His Housing Minister, Steve Clark, was blunt about this issue last year: “I want to be clear: We will not in any way entertain any proposals that will move lands in the Greenbelt, or open the Greenbelt lands to any kind of development.” But now, the tone has shifted, after a “tough decision,” the government pointed to the “housing crisis“, and blamed the previous government for “inaction” and not taking “bold steps to get housing built.” The government’s proposal will see some 7,400 acres of Greenbelt opened to development, while 9,400 acres of protected space is expanded in other areas as compensation. It’s an effective land swap. The government’s rationale is that some 2 million new residents will settle in Ontario by 2031, and that the need for homes is pressing.

The Greenbelt was created in 2005 by the then Liberal Government of Dalton McGuinty. Greenbelt legislation prevents municipalities from designating “prime agricultural areas” for development. The total size of the Greenbelt is some 2 million acres, to put the proposed scale of the development into perspective. Not only is this land to be opened up to development, but developers will be required to build homes quickly. Construction companies will have to show “significant progress” in showing clarity on their intentions to build by 2023 and start construction by 2025, or else the land will revert back to protected space. The land the government has identified to replace what will be turned into homes will be concentrated in just over a dozen urban river valleys, but specifics are sparse at this point. We want to emphasize that all of this is a proposal. The government has officially floated this to see what the reaction will be and the extent of the flak. The 15 areas the government is proposing to open up are all over the Greater Toronto Area, and specific maps are available on the above link. King Township, Vaughan, Richmond Hill, Markham, Ajax, Pickering, Clarington, and the region around Hamilton are all affected. At the same time that the government is now prepared to rip up the precedent set by the Greenbelt, it has also approved some 14,000 hectares of land for urban development across the Greater Golden Horseshoe area.

Peel, York, and Halton Regions have all seen their urban boundaries expanded recently, and Hamilton has also been ordered by the province to expand its urban boundary further than what it had originally planned. Durham Region will also see its area expand. All of these changes will make it easier for municipalities to facilitate the expansion of housing approvals, but ultimately, it will be up to those local governments to get projects approved. Ontario is clearly accomodating a vast increase in the amount of space developers can choose to build on, but work on increasing the number of skilled construction workers available to build these homes has shown much slower progress. The costs of raw materials are high and money is expensive nowadays, so developer margins are under a lot of pressure. A construction company with adequate staff and financing will still have to work to get their permits and a green light from a municipality, and this can be a laborious process. Ontario has moved decisively to affect the supply side of the equation, but there’s a lot more work to be done if the government is going to achieve a target of 1.5 million new homes by 2031.

The Bank of Canada has taken the lowest interest and mortgage rates in Canadian history and in a manner of months, sent them skyrocketing at the fastest pace on record. The Bank of Canada completely underestimated and dismissed the extent of the potential for inflationary growth over the short to medium term. Tembo repeatedly wrote about the potential for the bank putting the economy and the housing market at risk by waiting too long to respond to inflation which was building up in late 2021 and early 2022. We even warned that the Bank of Canada was potentially putting itself into a corner, and forcing it to rapidly raise rates to taper inflation. That’s exactly what happened. The reason Tembo wrote this was because we keep a close eye on inflationary history. There have been many central banks that have put themselves in positions where rates were kept too low for too long. In Australia in the late 1980s and early 1990s, the central bank waited too long to raise rates to cool a then booming economy. It was forced to frantically raise rates which created a severe recession and very high unemployment. Former Australian Prime Minister Paul Keating, in an interview with the Australian Broadcasting Corporation, said he and his staff were calling Australia’s Central Bank weekly to ask staff why they were holding off on raising rates. The fear was the then growing inflation rate in late 1988 and 1989. Similar outcomes have happened in the past in the U.S. and Canada.

Now, how is the frantic rate hiking by the Bank of Canada actually impacting ordinary working people? Tembo has created a graphic showing how much of a financial hit the BOC’s actions have had. In late October of last year, mortgage interest rates were in the low to mid 2% range. Based on a $800,000 mortgage, an amount not alien to many people given how high house prices were, a 2% mortgage would cost homeowners just over $3,400 a month. Let’s say that a couple of two professionals in their late 20s, making $80,000 each in Toronto, took advantage of low rates in October 2021 and just bought a $900,000 townhouse in Markham. Their combined take home pay would hover in and around $9,000 a month. After utilities, insurance, property taxes, and basic bills, their household spending would eat up a little over half of their budget. If that couple were to make the same move today, they would be paying $5,000 for the same mortgage amount. With inflation continuing to remain problematic and prices rising, household costs would be in a very uncomfortable position. While housing prices have fallen in many places, they have plateaued in other regions, and declined only slightly in some high value categories. And competition remains fierce as many people are in cash positions and want to take advantage of good deals. It’s a very tough market out there.

These higher rates mean that a million dollar mortgage will cost buyers just under $2,500 extra a month. Very few people will be able to stomach those price increases. Our housing market has been put in a position where monthly mortgage payment costs have increased by 44%, forcing people to come up with an extra $18,000 a year AFTER taxes just to maintain their financial budgets and mortgage payments. This is a recipe for pain. It also explains why predictions of a recession are increasing. Homeowners will have a lot less cash for spending, investing, and saving. The good news is that Canadians are prudent and smart with their money (generally). Fixed rate mortgages dominate big bank balance sheets, so the number of homeowners whose mortgages will need to be renewed and who will face higher rates is generally small. At the end of the day, rates were never going to stay ultra-low forever. But there’s a big difference in a graduated rate increase cycle, and one where the central bank hikes rates 6 times in 9 months. The big lesson in all of this is that central bankers are not infallible, that they’re human and make mistakes too, and that the job of dealing with and forecasting economic changes is very, very hard. Stay humble and crack the economic history books!

Equifax Canada just released the latest survey numbers on credit card balances, and the picture isn’t rosy. The average credit card balance across Canada is just over $2,100. This may not seem like much, but Canadians generally have very good credit, pay their credit cards down, and clear their balances. 70% of Canadians pay all of their credit card balances off each month, and pay no interest, but the worsening economic environment is putting pressure on more and more people. There are almost 80 million credit cards circulating in Canada, that’s basically 2 for every Canadian. Through the pandemic, credit card debt was paid off and savings rates soared as folks peeled back on spending and built up their financial storehouses to get through the crisis. All of that progress is being whittled away by inflationary pressures and rising prices. Total non-mortgage debt is up to over $21,000 per person. This is a number not seen since Q1 of 2020, just before the COVID-19 pandemic kicked in with a force.

The evaporation of savings and the overreliance on debt is being matched with a fall in home equity values and in the average net worth of Canadian households. Inflation is biting into wallets, but also biting into consumer confidence. Equifax’s data shows that 53% of Canadians said they had a lot of anxiety over their level of debt and only half said they felt comfortable with their personal economic outlook, down from 61% from last year. The recent surge in gas prices and persistently high food prices continue to take a severe toll on people. The bad news is that these credit card balances are likely to keep rising. Interest rates are going to keep going up, we don’t know how many more rate hikes are in the cards, but we know that the inflation rate is still stubbornly high. Higher interest rates means more expensive money for banks and lenders, and that means higher interest rates on debt products. Anyone anxious about their credit card balance should know that there is a way out of that anxiety, high interest costs, and pressure on your credit score; the answer is a debt consolidation loan from Tembo!

A Tembo debt consolidation loan is a great option if you have multiple debt products that you need to clear (lines of credit, credit cards, car loans, etc.). You can exchange multiple payments and products into one simple, clear, and convenient payment. Your credit score can improve greatly, and you can save on interest payments – especially as rates keep rising! It’s not just credit card rates and debts that are rising, HELOC balances are going up too. In June, HELOC debt nationwide passed the $170 billion mark, that’s more than the entire annual economic output of a country like Kuwait or Hungary. HELOC debt peaked in early 2013, when it hit $200 billion, and Canadians have been paying down their HELOC balances, but amounts are going up again. A Tembo debt consolidation loan can help you clear your credit cards and HELOC in one go. Another debt product is student loans. A federally guaranteed student loan is not the worst line of debt, and has less of an impact on credit scores, but can also slow a young person’s financial situation down. If you are a student with multiple debt products, or a child that needs help, a Tembo debt consolidation can be enlarged to clear those balances down as well.

In this blog post, we’re going to go over some of the recurring questions we get from folks who are interested in looking at the benefits and opportunities of a Tembo private second mortgage.

1. What do I need to be approved?

The approval process is extremely quick! Often providing commitment documents within 48 hours of application. Every second mortgage request is different and therefore the documents we require depend on each situation. Usually, we’re looking for the details of your house title, any liabilities you currently have (what’s your outstanding mortgage balance) and ID verification. In some cases we don’t even require a credit check or income verification*. There’s no “pre-approval” process at Tembo. The time you take to finish a pre-approval form for a major bank online is the time we can get you fully approved through an appointment with us.

2. How long until the cash is in my account?

We can get your funds to you in as little as 48 hours from application to funding*. We’ve had clients apply early in the day, their documents were approved that same morning, they provided signed documents early in the afternoon, and we deposit money into their accounts by lunchtime the following day. Speed and a simple approvals process are two great assets to a private second mortgage with Tembo.

3. Is a private second mortgage flexible?

We’ve had clients who needed funds quickly to secure a deposit for a condo. They didn’t want to draw on their savings and using their lines of credit wasn’t an option so they needed some added flexibility – they called Tembo. We’ve had clients who were moving to cottage country and wanted a new pickup truck or a boat and didn’t want to draw on their TFSAs to do so. We’ve had successful realtors who wanted to facilitate the purchase of several properties to flip over a longer period of months. The list of unique cases and needs goes on and on, but through them all, clients have appreciated the flexibility of our services and support. We are very solution oriented and creative in our process.

4. Can I use a private second mortgage to renovate my property?

Yes. Many clients will access a second mortgage to redo a kitchen, finish up a basement, or complete some landscaping. Anyone who has participated in the property market or bought a home knows that every house has some reno needs. With many property valuations declining due to higher interest rates, a renovation can help bridge the gap between where you want to sell and where the market has taken your home value. This is also a great tool to use just before listing your property. A reno loan can transform a home into a rental property, which could make it very valuable to an investor. Renovation options are endless, and a creative, well-planned reno can massively increase home value.

5. How can a private second mortgage benefit me financially?

If you have 1 or 2 credit cards, a line of credit, student loans, car loans, and some other debt products (like the vast majority of Canadians), you know that these tools can make life comfortable but come with interest costs. Those costs are climbing due to higher rates (and will continue to do so). Projections show that the Bank of Canada could raise rates to 4.25% by April of 2023. Using a private second mortgage with Tembo can help shave off hundreds if not thousands of dollars in interest payments by giving you the option of paying off all your debt products. Instead of making 4 or 5 payments, you’d make one. This could be a big boost to your credit score also. Giving you lower long term debt costs and more debt options over time.

*Subject to qualification