Bridge the price gap with a reno loan

The rise in interest rates has reshaped the market. The impact of such rapid and significant hikes has shifted the psychology of many buyers, and has pushed some developers to freeze their building plans. The situation could have evolved in a more incremental and healthy way but the BOC panicked and took too long to realize the immensity of the inflation problem. What we are beginning to see are some price slowdowns and declines, especially in those markets that were most stimulated by COVID demand (Durham, Caledon, Peterborough, and others). Some financial institutions have released analysis of the rate hikes (Desjardins), and predict price declines in the range of 15-20%, but overwhelmingly outside of major downtown cores. Desjardins saw cities like Peterborough and Orangeville and cottage country suffering the most from price declines. What we are seeing now is that buyers who scooped up property at the height of COVID demand are now being left with less equity as their values decline from higher rates.

For example, let’s take a retired couple who sold their downtown Toronto condo for $750,000 and moved to a large home in King County they paid a hefty premium for. They wanted space, quiet, less traffic, and comfort. After buying they saw their new neighbours sell their homes for $1.1 or $1.3 million, reinforcing the sense of value and desirability of the large suburban home they just bought. But now, with high inflation, high rates, and fear of COVID having largely subsided, their large suburban home wouldn’t sell for more than $900,000. What do they do? Weak prospective buying demand lowers the couple’s options. Higher rates mean an appraisal won’t mark them down as highly as they had expected. What a neighbour sold for 6-9 months ago is irrelevant now. One potential option is a renovation loan with Tembo. Why not spice the property up before a re-sale? In less than 2 days, Tembo can approve a renovation loan. Money can flow quickly without straining your line of credit, savings, or credit cards. Finishing a  basement, upgrading a kitchen, or marbling up another bathroom can add tens of thousands to the value of a home. A smart, well thought out renovation can dramatically shift the value equation of a home.

There are plenty of contractors looking for work in an increasingly bearish real estate market where people are strained for cash or spending more disposable income on higher mortgages. A more luxurious home can attract higher end buyers who are looking for good deals in the current environment. Turning an average suburban basement into a separate potential rental unit (vacancies are low, rents are high, and there’s tons of jobs out there) can attract buyers looking to rent property out and can turn one home into many. Renovation possibilities are endless. In March we wrote about a homeowner who received considerable media coverage for renovating their Little Italy home in Toronto to be environmentally friendly, energy efficient, and modern. The home was completely transformed and modernized, and its value skyrocketed. Remember that even a basic, standard overhaul of a kitchen with new appliances and marble finishes can add tens of thousands of dollars to the value of your home and can be accommodated quickly and affordably at Tembo. Do not underestimate the potential of your home and the home renovation options you have at your disposal in this market. A Tembo home renovation loan can be a complete game-changer that bridges the gap between pre-inflation prices and the reality today.

Consolidate and wipe out your debt with Tembo Financial

Credit card debt in Canada soared to over $90 billion just before the onset of COVID-19, but has fallen to below $74 billion. More and more Canadians are increasing their savings or reducing and eliminating their credit card debts given the uncertainty the pandemic has unleashed. Within as little as 48 hours, Tembo Financial can provide you with an equity advance on your home value to help you join the crowd and wipe out high credit card debt and lower your interest payments*. With Bank of Canada interest rates set to rise this year, higher credit card rates on many cards are inevitable – call Tembo today to consolidate your debt and ease your monthly cash flow.


The same COVID related pressures that will see interest rates go up will affect every debt product: from car loans, personal loans, and student loans. All of these products could see rates rise if the Bank Of Candaa acts and now is a good time to head off that risk. Total outstanding car, personal, and student debt in Canada has quintupled since 2000. In a low interest rate environment that we’ve lived through for many years, this was reasonable, but with the strong possibility that rates will go up soon – consolidation is a good option. Consolidating your debt with Tembo will save you in reducing your monthly interest payments and could improve your credit score.


If you’re interested in exploring the possibility of consolidating and clearing some of your debt please visit and give us a call at 1-844-238-6717!

*Subject to Qualification

Debt Consolidation Loans Ontario

Many Ontario homeowners are juggling multiple credit card and loan payments. With home prices and the costs of goods steadily increasing, it appears that household debt will continue to rise.

A debt consolidation loan with Tembo Financial is an easy and cost-effective way to free up your cash flow and manage increasing debts while allowing consumers to save money over the long run.

What is a debt consolidation loan?

Debt consolidation is a type of debt refinancing where a client acquires a new loan to pay off multiple high-rate consumer debts into one simple payment. Interest rates are often much lower with the single loan versus balancing multiple high interest debts like credit cards.

Oftentimes, people who are struggling with large debt often see a significant drop in their overall credit score. This ripple effect makes things very complicated for the individual whenever they are looking to purchase large ticket items like financing a car or refinancing their homes.

A debt consolidation loan from Tembo Financial allows you to leverage the equity of your home to pay down debts faster while simplifying your finances.

Advantages of Debt Consolidation Loans

A debt consolidation loan is an excellent tool for an individual with multiple debts with high interest rates and/or steep monthly payments – especially when amounts are upwards of $10,000+. Getting a debt consolidation loan combines these multiple payments making it much easier for the individual to manage just one monthly payment. The individual often pays a lower interest rate which ultimately lowers their monthly interest payments.

One of the greatest advantages of a debt consolidation loan is the potential for an individual to increase their credit score. This is extremely important because many companies such as cell phone providers, car dealerships and even gyms look at a person’s credit score to determine if they have a strong history of repaying debts. Having a high credit score allows individuals to be approved for many essential purchases they make in their everyday lives.

To summarize, the main benefits of debt consolidation loans are:

  • Save Money (By lowering overall monthly interest rates) *
  • Avoiding Bankruptcy or Consumer Proposal
  • Maintaining and improving your credit score*
  • Putting your home equity to work for you

*All debt consolidation loans are subject to credit and underwriting approval. Loan amounts and interest rates change based on a borrowers situation. There are no guarantees that the outcomes from a debt consolidation loan will be the same for all clients.