Make Money Count

Tightening Mortgages: How Rising Bank Credit Losses Impact Approval Chances

Welcome back to another episode of Make Money Count! In this insightful podcast, your hosts Marcus and Justin team up to delve into the ever-changing world of mortgage lending. 
Join us as we discuss the intricate details of the industry, offering you a front-row seat to understand how to make the most out of your financial opportunities.
Episode Highlights:    🏦 Exploring the current dynamics of mortgage lending in an evolving economy.    💼 How banks' tightening policies are reshaping the relationship with mortgage brokerages.    💡 The significance of trust and transparent communication in building client-broker connections.    💰 Unveiling the power of private lending to bridge gaps in complex financial scenarios.    🔑 Expert advice for borrowers seeking flexible solutions beyond conventional avenues.
Hosted by Marcus and co-hosted by Justin, this episode is packed with insights that cater to homeowners, prospective buyers, and financial aficionados alike. Our conversation dives deep into the core of today's mortgage landscape, uncovering the strategies and outlooks necessary to thrive in an ever-shifting economic environment.
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Share this enriching discussion with friends, family, and anyone interested in unlocking financial opportunities through insightful mortgage strategies. 
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0:00-1:21 Introduction1:21-3:21 Agents Relying on Us in Complicated Times3:21-5:18 Navigating Uncertain Times as a Consumer5:18-7:15 The Growing Complexity of Canadian Mortgages7:15-10:11 The Current Market from Cannect's Perspective10:11-12:15 Expert Advice for Mortgage Declines12:15-14:05 Navigating the Hurdles of Mortgage Lending14:05-14:33 Outro
#MakeMoneyCount #MortgageInsights #FinancialOpportunities #RealEstateFinance #EconomicShifts #TrustInFinance
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Unlocking the Secrets of Net Interest Margin - Big Six Canadian Banks Exposed!

Welcome to the The Make Money Count Podcast! In this episode, we dive deep into the fascinating world of Net Interest Margins for the Big Six Canadian Banks. 🏦💰
Net Interest Margin (NIM) is a critical metric that reveals banks' profitability and how efficiently they manage their assets and liabilities. In this eye-opening presentation, we bring you exclusive insights and data about the NIM of the Big Six Canadian Banks.
Join us on this journey as we uncover the hidden strategies behind their interest income and interest expenses. We'll analyze the factors influencing NIM and how it impacts the banking industry.
🔍 Don't miss out on this valuable information! Hit the play button and gain a competitive edge in understanding the financial world of Canadian banks.
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How to Pick a Mortgage in This Market - The Ultimate Guide!

Welcome to Make Money Count! In this episode, we dive deep into the world of mortgages and present to you the best mortgage options available in Canada today. Whether you're a first-time homebuyer or looking to refinance your current mortgage, this video is packed with valuable insights to help you make informed decisions.
🏡 Discover the secrets to securing the best mortgage rates and terms for your dream home in Canada. Our expert team has compiled years of experience and research to provide you with a comprehensive guide to finding the perfect mortgage solution. From understanding the different types of mortgages to exploring the eligibility criteria, we've got you covered!
🔍 We'll discuss the key factors lenders consider when evaluating mortgage applications, including credit scores, income verification, and debt-to-income ratios. Learn how to improve your chances of approval and negotiate favorable terms that suit your financial goals.
💡 Additionally, we'll share expert tips and strategies to help you navigate the mortgage process smoothly. Discover little-known techniques for reducing your mortgage payments, saving on interest, and even paying off your mortgage faster. Take advantage of our insider knowledge and empower yourself as a homeowner.
📚 Whether you're a prospective homebuyer or simply interested in the mortgage landscape of Canada, this video is a must-watch. Join us as we unravel the intricacies of mortgages and equip you with the knowledge needed to make confident decisions in the housing market.
0:00-0:43 Introduction 0:43-3:30 Market Analysis 3:30-4:49 Analyzing One-Year Fixed Rate 4:49-7:48 Analyzing Two-Year Fixed Rate 7:48-10:31Analyzing Three-Year Fixed Rate 10:31-13:31 Analyzing Five-Year Fixed Rate 13:31-17:31 Discussing Variable Rate Numbers 17:31-19:00 Predicting Bank of Canada's Next Moves19:00-19:34 Outro
#BestMortgageCanada#CanadaMortgageGuide#HomeownershipTips#MortgageSolutions#FinancialFreedom#MortgageRatesCanada#HomebuyingTips#MortgageAdvice#RealEstateCanada#MortgageStrategies
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👇👇INVEST WITH CANNECT NOW👇👇
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Unlocking Canada’s Job Market: Surprising Growth, Inflation, Investor Tips

The best mortgage brokers in Toronto are back with another Make Money Count podcast! Canada's economy recently experienced an unexpected boost in job growth, with the addition of 60,000 jobs in June, surpassing economists' expectations of a 20,000 increase. While this positive employment report is encouraging, experts remain divided on the implications it holds for the labor market and the overall economic outlook.
Unemployment Rate and Labor Market Indicators
Despite the job gains, there is a noteworthy increase in Canada's unemployment rate, which now stands at 5.4%. This uptick suggests potential loosening in the labor market as more individuals enter the workforce without immediate job prospects. However, it is important to consider that this situation could have a silver lining for the Bank of Canada's objectives.
Bank of Canada's Perspective on Inflation and the Labor Market
The Bank of Canada has been actively seeking to slow down the job market to control inflation. The rise in the unemployment rate may provide some relief to the central bank, as it could help alleviate inflationary pressures. By intentionally cooling down the labor market, the Bank of Canada aims to maintain price stability and prevent excessive inflation.
Wage Growth and Speculation on Interest Rate Hike
While the overall employment figures are positive, the average hourly wage growth has experienced a slowdown in year-over-year growth, with an increase of 4.2% in June, the slowest rate since May 2022. Economists speculate that these wage growth trends may influence the Bank of Canada's decision on another potential interest rate hike.
Probability of an Interest Rate Hike
Following the release of the jobs report, market data suggests that the probability of a rate increase has risen to 65%. This indicates that investors anticipate a potential tightening of monetary policy by the Bank of Canada in response to the recent labor market developments. However, it is worth noting that wage growth has eased, and wages for permanent employees have remained stagnant, which may provide some reassurance to the central bank.
What's Ahead
Canada's unexpected job gains in June have sparked discussions among economists regarding the intricacies of the labor market and the broader economic landscape. While the increase in the unemployment rate signals potential challenges, it also presents an opportunity for the Bank of Canada to address inflation concerns. Wage growth trends and the probability of an interest rate hike further contribute to the ongoing debate on the future direction of monetary policy.
As we navigate through these economic dynamics, it is crucial for policymakers, investors, and individuals to remain vigilant and adaptable in understanding the complexities of the labor market and inflationary pressures. By examining these factors comprehensively, we can gain valuable insights and make informed decisions that will shape the trajectory of our economy moving forward.
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OSFI, the Domestic Stability Buffer, & Fractional Reserve Banking

In this podcast, we delve into the recent decision made by the Office of the Superintendent of Financial Institutions (OSFI) to raise the domestic stability buffer for big banks. The move has garnered significant attention within the financial sector and has important implications for the stability of the Canadian banking system. We provide an in-depth analysis of the reasons behind this decision and its potential impact on the banking industry.
Understanding the Domestic Stability Buffer
The domestic stability buffer is a regulatory tool used by OSFI to ensure that banks have an adequate capital buffer to withstand potential financial stress. It serves as a safeguard against economic downturns and acts as a protective measure to maintain the stability of the banking system. By increasing the buffer, OSFI aims to enhance the resilience of big banks and reduce the risk of financial instability.
Rationale behind OSFI's Decision\The decision to raise the domestic stability buffer stems from a careful assessment of various factors affecting the Canadian banking sector. OSFI closely monitors the risks and vulnerabilities within the financial system and adjusts the buffer accordingly. The recent increase is a proactive measure to address potential risks and strengthen the resilience of big banks.
Factors Driving the Increase
1. Economic Outlook
OSFI takes into account the prevailing economic conditions and the outlook for future growth. By considering factors such as GDP growth, inflation, and unemployment rates, OSFI assesses the potential impact on the banking system. The decision to raise the buffer indicates concerns about the economic environment and the need for banks to be prepared for adverse scenarios.
2. Housing Market Vulnerabilities
The Canadian housing market has experienced significant growth in recent years, raising concerns about potential vulnerabilities. OSFI recognizes the importance of mitigating risks associated with mortgage lending and real estate exposure. The increase in the domestic stability buffer serves as a preventive measure to address these vulnerabilities and ensure the soundness of banks' mortgage portfolios.
3. Global Financial Conditions
OSFI closely monitors global financial conditions and their potential impact on the Canadian banking system. Volatility in international markets and uncertainties surrounding global trade can pose risks to banks' stability. The decision to raise the buffer reflects OSFI's commitment to proactively manage these risks and maintain the resilience of the banking sector.
Potential Implications
The increase in the domestic stability buffer will have several implications for big banks and the broader financial system.
1. Strengthened Resilience
By raising the buffer, OSFI is reinforcing the resilience of big banks and their ability to weather adverse economic conditions. This measure ensures that banks have a sufficient capital buffer to absorb losses and maintain the provision of essential financial services.
2. Enhanced Financial Stability
A stronger capital position for banks contributes to overall financial stability. The increased buffer mitigates the risk of potential failures and reduces the likelihood of taxpayers bearing the burden of a bank bailout. This move aligns with OSFI's mandate to promote the stability and efficiency of the financial system.
3. Impact on Lending and Profitability
The higher domestic stability buffer may influence banks' lending practices and profitability. With a larger capital requirement, banks may exercise more caution in extending credit, particularly in riskier segments such as mortgage lending. This could have implications for borrowers and potentially slow down credit growth in certain sectors.
Conclusion
In conclusion, the decision by OSFI to raise the domestic stability buffer for big banks underscores the importance of maintaining a resilient and stable banking system. The increase is driven by a careful assessment of various factors impacting the Canadian financial landscape. By strengthening the capital position of banks, OSFI aims to mitigate risks, promote financial stability, and safeguard the interests of depositors and the broader economy.

What Interest Rate Should You Take In 2023?

Welcome to the Make Money Count podcast, brought to you by Cannect Home Financing, your trusted mortgage broker in Toronto, Canada.
In this episode, we delve into the current state of the Canadian housing market and explore the factors that may contribute to a potential rise in interest rates. Join us as we discuss the impact of higher interest rates on Canadian consumers and address the challenges in meeting the housing demand. Additionally, we touch upon recent successes in the stock market and provide practical advice for Canadian homeowners.
We'll try to provide practical advice specifically tailored to Canadian homeowners. From managing mortgage payments to exploring refinancing options, we offer actionable tips to help homeowners make the most of their investments. Whether you're a first-time buyer or a seasoned homeowner, these valuable insights can guide you in making informed decisions to optimize your financial well-being.
We will also explore various aspects of the Canadian housing market, including its current status, the potential rise in interest rates, the impact on consumers, challenges in housing supply, recent stock market successes, and practical advice for mortgage planning. By equipping listeners with knowledge and expert perspectives, Cannect Home Financing aims to empower individuals to make informed decisions and navigate the ever-changing financial landscape with confidence.
Stay tuned for more episodes of Make Money Count, where we continue to explore topics related to personal finance, investment strategies, and the Canadian real estate market. Remember, when it comes to your financial future, every decision counts.
Transcript: What Interest Rate Should Canadians Take In 2023 - Make Money Count 063 Transcript
 
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Is Inflation Creeping Back Into The Canadian Economy?

The finance podcast hosted by the team with the lowest Home Equity Loan returns with another episode of Make Money Count! The latest podcast episode centers around the recent inflation reading and its implications for the Canadian housing market.
Inflation
The inflation rate came in higher than expected. Driven primarily by increases in shelter costs such as rental rates and mortgage interest. This has created a cyclical effect where inflation causes increased interest rates, leading to higher debt servicing costs and rising rental prices. The conversation also touches on the likelihood of the Bank of Canada increasing interest rates again and the impact on five-year fixed mortgage rates. As the housing market remains resilient with climbing prices and transactions. It is expected that interest rates will stay elevated for a longer duration, prompting consumers to consider fixed-rate mortgages over variable-rate options.
Supply & Demand
The discussion continues around the factors influencing the impact of supply and interest rates on housing prices. The lack of supply is a key reason for the increase in prices. The longer interest rates remain high, the higher the probability of more supply entering the market. The availability of supply will be the determining factor in whether prices go down. If banks change their approach to borrowers who are struggling to meet new payment terms, more properties could hit the market.
Clients who took shorter-term mortgages during COVID and now face higher interest rates may consider selling their properties. The conversation shifts to the influence of the media frenzy on housing prices. It is acknowledged that the media coverage created fear among people, discouraging them from taking action in the market.
The trend of stretching out amortization and moving up the property ladder will change, with some suggesting that people may be stuck in their homes longer, waiting for equity and lower amortization. However, that stability in housing prices has been maintained, and once interest rates drop and costs increase, the market dynamics could return to a similar pattern.
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Transcript: Is Inflation Creeping Back Into The Canadian Economy - Make Money Count 062

Will Interest Rates Cause Mortgage Defaults In Canada?

The team behind Toronto's best home equity lenders is back with another edition of Make Money Count! In this episode, Marcus is joined by Rina DiRisio, a skilled real estate agent with 30 years in the industry.
Interest Rates
The Canadian housing market has been a topic of much discussion and debate, with concerns about affordability, supply, and demand at the forefront of many conversations. Marcus and Rina highlight some of the key issues currently facing the market, including worries about supply and the impact of interest rates. Did you know 20% of all mortgages currently held by banks are not servicing the interest on their mortgage? This could lead to a greater supply issue if banks become worried about holding the line. This concern is compounded by the fact that many of these mortgages have amortization exceeding 35 years. Which could lead to negative equity positions for homeowners.
Housing Supply
These concerns about supply are not unfounded. Higher rates could lead to an increase in mortgage defaults, which could in turn lead to a surplus of supply. This could be particularly problematic in areas where there is already a high level of inventory on the market. Marcus and Rina's conversation highlight the delicate balance between supply and demand in the Canadian housing market.
While demand for homes remains strong, there are concerns about the ability of the market to continue to supply enough homes to meet this demand. This is particularly true in areas with high levels of inventory. Where rising interest rates could lead to a decrease in demand and an oversupply of homes.
What's Ahead?
One potential solution to these issues is to increase the supply of new homes on the market. This could be achieved through various measures, including changes to zoning laws, increased incentives for developers, and the creation of new affordable housing units. By increasing the supply of homes on the market, it may be possible to alleviate some of the concerns around affordability and supply, while also ensuring that demand for homes remains strong.
Another potential solution is to address some of the underlying issues that are contributing to the current state of the market. This could include measures to address income inequality and the wealth gap, making it easier for more Canadians to afford homes. It could also involve greater investment in public infrastructure. Making it easier for people to access jobs and other opportunities outside of major urban centers.
Ultimately, the Canadian housing market is facing a complex set of challenges that will require a multifaceted approach to solve. We need to address both the supply and demand side of the equation. By working to address the underlying issues that are contributing to the current state of the market, it may be possible to create a more sustainable, equitable, and affordable housing market in Canada.
Show Notes:
- 0:00 Introduction
- 4:30 Predictions for future Interest Rates
- 5:45 Russians Prank Call Jermaine Powell 
- 10:03 Discussing the busiest Real Estate Month
- 10:49 Pros and cons of listing your house for sale versus buying a new one.
- 12:25 Real Estate Trends from the 1980s:
- 17:40 How bank defaults can impact the real estate market 
- 19:32 Marcus compares Canadian Banks to Braveheart
- 25:10 Benefits of banking with Canadian banks
- 27:15 Marcus and Rina make a bet about the real estate market in one year from now. 
- 30:15 Discussing Rina’s most expensive house sold 
- 33:00 Telling you how to Succeed as a Real Estate Agent
 
 
 
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Interest Rates & Luxury Estates with Peter Philip Papousek

Ontario's best mortgage broker, Cannect Home Financing, returns with another episode of Make Money Count. This episode breaks down the Bank of Canada's April 2023 Monetary Policy Report. We also sit with Peter Philip Papousek of Team Papousek, who is in the Top 25 Real Estate Teams in Remax Canada and one of the country's best luxury real estate agents.
Bank of Canada Monetary Policy Report
Let's talk about inflation. The report shows that prices for things like food, gas, and housing have been going up, and that's not good news for our wallets. Supply chain disruptions and increased demand are some of the reasons behind it. However, the report also says that the central bank expects inflation to ease in the next few months, which is a bit of a relief.
Another thing to keep an eye on is government spending. With the new Canadian budget announcement, the government is due to spend a lot of money. While it has helped support businesses and households, there are concerns about the long-term impact on inflation and the overall economy.
Interest rates are also important to understand. The report suggests that interest rates will likely stay the same until the end of the year, which means borrowing money might not get more expensive for now. However, it's worth noting that previous interest rate increases could still affect the economy, and some Canadian banks are allowing mortgages to run, which could add to the challenges we face as Canadians.
Let's meet Peter Philip Papousek
Peter Philip Papousek is a real estate agent associated with RE/MAX in Mississauga, Ontario, with a wealth of expertise in the local market, making him the go-to professional for all your real estate needs.
What sets Peter apart is his impressive track record, including the record sale of a high-priced home in Mississauga. His exceptional negotiation skills and market insights have earned him a reputation for delivering outstanding results for his clients. Peter's commitment to excellence and personalized approach ensures that he goes above and beyond to exceed his client's expectations.
But Peter's expertise isn't just about numbers and sales. Real estate is a family affair for Peter, as his father was also involved in the business. Peter's deep-rooted passion for real estate and his family's legacy is evident in his unwavering dedication to his clients and his genuine care for their real estate needs.
Whether you're looking into buying luxury real estate, are a seasoned real estate investor, or looking to sell your property, Peter Philip Papousek is the trusted professional you can count on. Contact him today to experience his unparalleled service and expertise in helping you achieve your real estate goals.
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How Do World Issues Affect Interest Rates?

Are you curious about how world issues can impact interest rates? Well, buckle up, because the best mortgage brokers in the business return, helping you to understand this connection. An essential part of managing your finances.
Simply put, world issues, such as economic instability or geopolitical tensions, can ripple effects on interest rates. For example, if there is a global economic downturn, central banks may lower interest rates to stimulate borrowing and spending. This can make it easier for you to get a loan, but these times typically don't last long.
On the other hand, if inflation becomes a concern, central banks raise interest rates to make borrowing more expensive and slow economic growth. This can make it harder to get a loan.
It's also worth noting that world issues can affect different interest rates in different ways. For instance, the Federal Reserve sets the federal funds rate, which is the interest rate that banks charge each other for overnight loans. This rate can have a significant impact on other interest rates, such as credit card interest rates, student loan interest rates, and mortgage rates.
Additionally, international events can impact exchange rates, which can, in turn, affect interest rates. For example, if a country's currency depreciates, it may become more expensive to import goods, which can lead to higher inflation and higher interest rates.
Why should you care?
So, why should you care about this? Well, for starters, if you're planning on taking out a mortgage in the near future, understanding how world issues can impact interest rates can help you make informed decisions about when and how to borrow. If interest rates are high, you may want to hold off on refinancing until they come down. In the meantime, a home equity loan is probably better for you.
Similarly, if you're looking to save money, it's essential to pay attention to interest rates. If you're trying to build an emergency fund, for example, you'll want to look for a savings account with a high-interest rate so that your money can grow faster.
Overall, while world issues may seem far removed from your everyday life, they can have a significant impact on your finances. By staying informed about global events and understanding how they can impact interest rates, you'll be better equipped to make smart financial decisions.
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Canada’s 2023 Budget and the Fall of Silicon Valley Bank

Welcome back to Make Money Count, the podcast by the best mortgage brokers in the GTA, Cannect Home Financing. In this latest episode, we discuss the details of the Canadian 2023 Budget Announcement and the fall of Silicon Valley Bank. Buckle up, because it's a wild ride!
Silicon Valley Bank grew its deposits significantly, largely due to the tech companies and venture capitalists in Silicon Valley. They needed to put that capital to work to earn a yield on those deposits, so they invested in what they perceived to be low-risk bonds. However, when deposit holders wanted to withdraw their money, the bank had to liquidate those bonds, which resulted in a loss. This loss was so significant that it exceeded the bank's market capitalization, putting the bank in a vulnerable position.
Peter Thiel, a well-known venture capitalist, instructed companies to take their money out of the bank, which led to a run on the bank as word got out. The FDIC backstopped the bank, which meant that depositors were not supposed to lose their money, but anything over $250,000 was supposed to be gone. However, the FDIC is a fund paid into by banks, not taxpayers, and the decision was made to backstop all deposits.
The main takeaway from this crisis is that banks can be vulnerable if they don't have a sufficient capital buffer to absorb losses from their investments. Additionally, media outlets like CNBC may not always provide information that helps predict market events, as they may only report on events after they happen.
The Canadian 2023 budget has been criticized by some, including Conservative Leader Pierre Poilievre, who called it a "spending bonanza" that will fuel inflation and harm taxpayers. Others have criticized the budget for not addressing the housing crisis in Canada, which has become a pressing issue in many urban centers. The Residential Construction Council of Ontario, for example, said that the budget does not fully address the systemic problems delaying the construction of much-needed housing.
Overall, the 2023 Canadian federal budget is a bold attempt to address some of the most pressing issues facing the country today. While it may not be perfect, it will be interesting to see how these measures play out over the coming years.
We dive into all these topics and more on the latest episode of Make Money Count. Be sure to subscribe on your favorite platform!

Insights for Investors: Navigating a Potential Stagflationary Crisis

This episode does not constitute as financial advice. Past performance is not indicative of future results. See Offering Memorandum for details and risks. As of February 15, 2023, average return is 8.14% annualized since inception with DRIP and loan to value ratio is 52.3%.
The global economy is facing an unprecedented crisis, one that combines the worst aspects of both the 1970s-style stagflation and the 2008 debt crisis. This new phenomenon, known as the stagflationary crisis, is characterized by a combination of high inflation and low economic growth. In this article, we will discuss what a stagflationary crisis is and how it combines aspects of both.
We will also examine the potential responses of the Federal Reserve and the Bank of Canada to the crisis, as well as provide advice for investors on how to protect themselves against a potential recession, debt crisis, and out-of-control inflation. Finally, we will take a closer look at how rising mortgage rates have impacted housing affordability in Canada and what steps the bank is taking to monitor and proactively reach out to clients at higher risk of financial stress.
What is a Stagflationary Crisis?
A stagflationary crisis is a unique economic phenomenon that combines the characteristics of both stagflation and a debt crisis. Stagflation is a situation where an economy experiences stagnant economic growth and high inflation. In contrast, a debt crisis occurs when many borrowers default on their debts, causing widespread financial instability. The stagflationary crisis combines these two problems. The result is a situation where the economy experiences high inflation and low growth, while simultaneously facing a debt crisis.
How will the Bank of Canada Respond?
Historically, the Bank of Canada might respond to a potential debt crisis, stock market crash, or explosion in debt defaults by implementing a series of monetary policies. These policies may include lowering interest rates, purchasing government bonds, and providing liquidity to financial institutions. The ultimate goal of these policies would be to stimulate economic growth while keeping inflation under control. However, with inflation at its current levels, this may not be an option for the Bank of Canada for some time.
Investor Strategies for Navigating the Crisis
As an investor, there are several steps you can take to protect yourself against the potential recession, debt crisis, and out-of-control inflation. One strategy is to diversify your investment portfolio to minimize risk. Another approach is to invest in assets that tend to perform well during times of economic crisis. An investment like gold, or in mortgage investment funds, such as the Cannect MIC.
Comparison of the Actions of the Federal Reserve and the Bank of Canada
The actions of the Federal Reserve and the Bank of Canada during the crisis have been similar in many respects, with both central banks implementing a variety of monetary policies to stabilize the economy. However, there have been some key differences between the two banks, such as the Fed's preoccupation with contemporaneous and lagging economic indicators, which carries risks.
Impact of Rising Interest Rates on Variable-Rate Mortgage Holders
The rising interest rate has had a significant impact on variable-rate mortgage holders, with many experiencing higher monthly payments. However, the percentage of Canadians with variable rates is relatively low, with most opting for fixed-rate mortgages instead. But are banks taking steps to monitor and proactively reach out to clients at higher risk of financial stress? That is yet to be seen.
In conclusion
The potential risks of recession, debt crisis, and inflation are on the minds of many investors and economists today. However, by remaining disciplined, diversified, and focused on long-term goals, investors may be better positioned to weather short-term market volatility. Additionally, it is worth monitoring the impact of rising mortgage rates on the Canadian housing market and considering the actions and approaches of central banks like the Fed and the Bank of Canada.
Finally, investment opportunities such as the Cannect MIC thrive during times like these as property owners look for ways to access equity and get them through this economic time.
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0:00 - Intro1:12 - CIBC and eroding equity from mortgages6:17 – How is the Bank of Canada making decisions for interest rates?9:25 – Minimum wage and inflation12:03 – US vs Canada inflation strategies13:50 – Affects on the Housing Market19:00 – When’s the right time to buy?23:09 – Stagflation25:09 - Nouriel Roubini and the Perfect Storm35:15 – Cannect MIC vs Mutual Funds42:36 – What’s going to happen next?48:53 – Is this the new normal?

How To Renew Your Mortgage In 2023 With Current High Interest Rates

Welcome back to Make Money Count, hosted by the best mortgage brokers in the GTA, Cannect!
If your mortgage is up for renewal soon, you may be feeling anxious about the possibility of renewing your mortgage in a high interest rate environment. While it's true that interest rates have risen over the past year, there are still ways you can secure a mortgage with a low interest rate. In this blog post, we'll share some tips on how to renew your mortgage in a high interest rate environment.
First, it's important to shop around for the best mortgage rate. Don't simply accept the renewal rate offered by your current lender without doing some research first. By shopping around and comparing rates from different lenders, you can find a better deal that will save you money in the long run.
Second, consider getting a shorter mortgage term. While a longer term may seem more appealing, a shorter term can actually help you save money in the long run. A shorter term means you'll pay off your mortgage sooner and will likely have a lower interest rate.
Finally, consider speaking to a mortgage agent to discuss your options. At Cannect, we offer a range of mortgage solutions that can help you save money on your mortgage. In our recent podcast, we discussed some of these solutions in more detail, so be sure to check it out.
RRSP Contribution
Additionally, we also want to remind our readers to contribute to their RRSP before March 1st. By contributing to your RRSP, you can reduce your taxable income and save money on your taxes. This can be especially helpful if you're worried about your mortgage payments in a high interest rate environment.
Renewing your mortgage in a high interest rate environment can be stressful, but by following these tips and consulting with a mortgage agent, you can find a mortgage solution that works for you. Don't forget to check out our podcast for more information and to contribute to your RRSP before March 1st to save money on your taxes.0:00 - Intro1:53 - Firms – The canary in the coal mine4:51 - Strength in Toronto real estate8:28 - Phil’s suggestion for managing higher mortgage interestrates – Start the conversation14:08 - Viewer question –  My mortgage payments have doubled – What can Ido?19:00 – Increasing amortization to mitigate the impact ofthe debt servicing payment22:06 - Why selling may not be the best option to escapehigh mortgage payments26:51 – Viewer question – Renewal offers are terrible – Isit possible to transfer my mortgage somewhere else?29:00 – Potential discounted rates when moving mortgages betweenlenders32:32 – Viewer question – I have a good fixed rate but wantto leverage my home’s equity for renovations, is there a way to do this withoutlosing my rate?35:03 – Marcus updates Phil on the state of Cannect MIC41:25 – Phil’s thoughts on Cannect MIC
 
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Economic Update: Inflation, Interest Rates, and Housing Prices

Toronto's best mortgage brokers are back with another episode of the Make Money Count Podcast. In this episode Marcus and Justin give an update to the economic responses of 2022. The topics of discussion: Inflation Surges, Interest Rates Rise, and the Housing Market Correction.
Overall, 2022 was a year of rapid tightening and inflation, with the economy remaining strong but certain indicators pointing towards a potential recession. The housing market also saw a correction, with affordability challenges leading to a rising outflow of residents from Toronto.
Follow along on the charts by visiting the episode page.
If you are in need of a home equity loan, Cannect should be your first contact.
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Real Estate Insights with Matt & Ben Realtor Ben Ferguson

Welcome to another episode of Make Money Count, the podcast from the best mortgage brokers in the GTA.
As mortgage professionals, we know that this industry can be highly competitive and fast-paced. That's why it's important to have a strong team by your side, whether it's a group of brokers working together or a business partner you can rely on.
In this episode of our podcast, we were joined by Ben Ferguson, a top real estate agent with Matt & Ben Toronto Real Estate Team. A good friend who has been in the industry for over 20 years. As we reminisced about our careers, we realized that our friendship and mutual trust have been integral to Cannect's success in the mortgage industry.
Working with someone you enjoy being around and who you trust can make all the difference in the daily challenges and long-term goals of any industry. When you have a supportive team, it's easier to navigate the complex world of mortgage lending and take advantage of opportunities to grow your business.
But strong business partnerships aren't just about having someone to share the workload with. A mentor or someone to bounce ideas off of can also be invaluable in the mortgage industry. In our experience, good communication and collaboration are key to building a successful mortgage brokerage, or real estate team.
Ultimately, building strong, supportive relationships is essential in the real estate and mortgage industries. Whether it's a team of brokers or a long-term business partner, having a group of people you trust and enjoy working with can lead to long-term success and make the journey more enjoyable.
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Home Buyer Incentives & Pre-Construction Prices

Welcome to our episode on Canada's down payment assistance program and current pre-construction home prices! Cannect, Toronto's best mortgage brokerage, are here to provide you with all the information you need to make the best decision for your financial future. Whether you're considering a pre-construction home or looking for assistance with your down payment, we're here to help. With our expertise and knowledge of the Canadian mortgage market, we help you navigate the process and find the best solution for your needs.
On The Show...
Down Payment Assistance
Canada's Down Payment Assistance Program is a government-funded program designed to help Canadians purchase their first home. The program provides a grant of up to 5% of the purchase price of a home, or up to $25,000, whichever is less. The grant is available to first-time home-buyers with a household income of less than $120,000 per year. The grant is intended to help cover the cost of a down payment, closing costs, and other expenses associated with purchasing a home. The program is administered by the Canada Mortgage and Housing Corporation (CMHC). We cover it all in detail in the episode.
Pre-Construction Homes
Further on the show we discuss if it's a good time to buy a pre-construction home. The uncertainty in the real estate market has people questioning. Pre-construction homes are often sold with a lot of assumptions. Therefore, some projections may not be that accurate in the current market. Additionally, the process of buying a pre-construction home can be complex and lengthy. It may be difficult to get financing. Finally, the value of the home may not appreciate as quickly as anticipated, leaving you with a property that is worth less than what you paid for it.
We invite you to listen to the podcast, where we discuss the ins and outs of down payment assistance programs. With the right knowledge, you can make the best decision for your home-buying journey.
Show Notes:
 
Attachments:First Time Home Buyers InformationMake Money Count 053 Transcript
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Renting vs. Buying a Home in Toronto’s Housing Market

The best mortgage brokers in Toronto return! This week Marcus & Justin debate renting vs buying a home in this current market. With how much housing prices have declined and how much rental rates have risen, we have a question. Is it now cheaper to buy a property and build equity rather than paying all-time high rent prices? No matter the market, it is essential to examine these opportunities on a case by case basis. Have a listen to the episode to learn the math to help make the decision easier.
The Math
The team looks at an example in downtown Toronto where the monthly rent is $3000 and the purchase price is listed at $489,000. After putting 5% down as a first time buyer; a 5 year fixed rate of 4.8%; $1,292 in property taxes; and maintenance fees of $329 a month: you arrive at a monthly average cost of $3,192 a month. This is not much more than the $3,000 rent and you build equity at the same time.
We also discuss the over-reactions of the central banks when it came to stimulating the economy during COVID. They are now over correcting it with rapid rate hikes. This is what has put real estate prices in a difficult position. They rose to unattainable levels and now are falling back to earth. This will have tough consequences for those who purchased at all time highs and now are servicing the debt at unaffordable levels. Only once inflation slows down will the central banks pause these rate hikes and then pivot in the other direction.
Whether you're new to the city or you've been here for years, this video is a must-watch! We'll be discussing the latest trends in the Toronto housing market, and giving you advice on how to make the most of your investment.
Make sure to watch to the end to find out which option is best for you!
 
0:00 - Intro1:59 - Buy vs Rent example #1: 20 Joe Shuster Way7:41 - How will the economics impacting the Buy vs Rent debate change in the foreseeable future?14:32 - You have more to look forward to when buying if values are low and rates are high vs values being high and rates being low.17:58 - You need to look at the Buy vs Rent decision on a case by case basis, but there are many attractive buying opportunities.20:41 - Does Marcus own rental properties? The last 20 years has been an incredible bull run.24:32 - Central Banks overshot way too far with stimulus and now they are overshooting way too far with rate hikes.29:05 - Private Equity deals have dropped as well due to the increased cost of capital required to finance the purchases. Will that turn around soon?
 
 
Document: Buying Vs Renting In Toronto - Nov 2022
Transcript: Make Money Count 052 Transcript
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4 Reasons You Should Buy A Home During A Recession

Toronto's best mortgage brokerage, Cannect Home Financing, returns with episode 051 of Make Money Count. This week, Marcus and Justin outline four reasons to buy a home during a recession. It may seem scary to take the completely opposite path of everyone else, but it can prove to be a great decision in the long run. Have a listen to this episode to hear these great reasons.
1. The Math
Over the last two years, interest rates have gone up drastically, which has made it much less affordable to buy real estate and service the debt on it. However, if the purchase price drops enough to counter this rate increase, you'll find that the math could balance it out. If you were willing to purchase a property when the 5-year fixed rate was 2.5%, how far does the price have to drop for you to still want to purchase when the 5-year fixed rate goes up to 5.5%?
Well, on a $500K mortgage, this extra 3% of interest is equal to $15K per year. Over the 5-year term, that is $75K, or 15% of the mortgage amount. This means that if you can purchase the property for 15% less than you were willing to pay for it a few years ago, it would negate the cost of the interest rate increase.
2. Long-term success
You make money when you buy something, not when you sell it. If you make a purchase when prices are lower, you are likely to set yourself up well for the future when others buy it from you. Over the long-term, property values trend upwards. So similarly to stock purchases, "buying on the dip" will set you up for success.
3. You have your pick of the litter
During a recession, the supply of housing available tends to exceed the demand. This means you don't have to settle for the wrong house because there aren't enough affordable options available. When supply exceeds demand, it means that there is more to choose from. Conversely, this leads to a lack of bidding wars and gets you much better price. No more buying a house next to the train station because it was the only affordable place you could find with a spacious backyard. During a recession, you'll be able to get that corner house you've always been dreaming of.
4. The process is less stressful
When the housing market is strong, it's actually a tough time to be a buyer. People line up to place offers on home, they sell in the blink of an eye, and they end up going way above asking price. During a recession, the tables turn. Agents are begging prospective buyers to check out an open house. The visits are on your schedule, not theirs. You can also take your time submitting an offer without fearing the home will be sold before you even leave the open house. If you can handle the stress of market uncertainty, the tradeoff will be much less stress in the home buying process.
It won't be easy to buy real estate in a recession, but was it easy to buy before the recession either? Buying a home has to be done when the time is right and a recession should not scare you away.
 
Episode Transcript: Make Money Count 051 Transcript - 4 Reasons To Buy A Home During A Recession
 
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More about Cannect:Watch and read our testimonials and reviewsInvest In the Cannect Mortgage Investment Corporation

5 Ways To Make Money In A Recession

It's the 50th episode of your favorite podcast Make Money Count! Toronto's best mortgage brokerage, Cannect Home Financing, outlines 5 ways you can make money during a recession. Investing during uncertain times can be scary, but when done properly and with the right research, there are still opportunities to make money. Always make sure you carefully evaluate the options and think about your specific goals and time horizon. Have a listen to the semi-centennial episode to hear them!
1. Buy Good Stocks
A lot of stocks have taken a beating over the last year, but some of these companies are still very profitable and will come out of this recession strong. Even some of the bigger names like Amazon and Meta are down over 50% from their all-time highs. This is one of the most fundamental rules of investing: buy low, sell high!
2. Invest in Property
If you can handle the increased carrying costs facing real estate investors today and have a long term time horizon, similarly to buying good stocks, this is a good time to buy that property you've been eying at a discounted price.
3. Invest in Cannect MIC
Cannect Mortgage Investment Corporation has been preparing for tough times like this since inception. We motivationally align borrowers and investors by lending to good borrowers at a conservative LTV that have a probable and reliable exit strategy from the loan. This has resulted in a consistent return for our investors over the last ten years.
4. Short the Market
Market prices and dividends have historically yielded a positive return, but if you own stocks, real estate, or other market-correlated assets, shorting the market using puts or other investment methods can act as a hedge for your overall market exposure. It is also just a good way to make bets on short-term market downturns.
5. Start a Business
A lot of it comes down to the idea, startup costs, and execution, but starting the foundations of a new business during a recession can allow it to thrive when the economy turns around again.
Marcus also goes into the importance of investing in yourself. Whether it is going to school or starting a business, a recession is a great time to make an investment in yourself. It's one that will always pay dividends.
As stated in the episode, Cannect is not a financial advisory firm and the topics discussed do not constitute financial advice.
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Why Now is a Great Time to Invest in the Cannect MIC

Toronto's best mortgage brokers return for another episode of Make Money Count. They discuss how certain factors like delinquencies and rental rates may assist in stabilizing values with increased interest rates. They then dive into how the Cannect Mortgage Investment Corporation (MIC) has been prepared for economic conditions like these for a while due to conservative loan-to-values and prioritization of exit strategies. Have a listen to learn more about the current state of our mortgage fund.
It's the tough times like these that show how prudently MICs have been lending. Many are currently unable to lend because their funds are tied up into deals with no exit strategy. When the only exit is default, it is very difficult for not only the borrower, but the lender too. When deciding which MIC to invest in, give them a call and ask the tough questions like how often do they stress test for LTVs; how do they arrive at property values for their loans? If these answers don't satisfy you, the cloudy days will be extra cloudy for these funds.
Past performance does not guarantee future results. Prospective investors should rely solely on the Fund’s Offering Memorandum, which outlines the risk factors in making a decision to invest. Cannect MIC shares are sold through our exempt market dealer, Meadowbank Asset Management Inc. Not CDIC insured.
 
Attachments:
Cannect MIC Investment Stats
Make Money Count 049 Transcript
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