Make Money Count

Mortgage Brokers Explain Inflation And Rising Interest Rates

New Make Money Count episode! It has been a while, but with all the talks of inflation and rising interest rates, we had to hop on to give our two cents. Inflation may seem scary, but as you'll hear in the episode, we don't believe the actions taken by the Bank of Canada will be as drastic as the markets may be pricing in because:
 
1. The average consumer debt right now is high, and each rate hike will have a pronounced impact on that debt.
 
2. There's been a lot of inflation recently, but a lot of that pressure is believed to be a result of supply chain issues that won't be fixed by an increase in interest rates.
 
This is why we still believe the variable rate is a great option. And whenever that time comes that you want to lock in, call Cannect before going to your bank. Through one of the several mortgage finance companies we work with, we can get you a fixed rate with more favourable breaking costs. Remember, 70% of mortgages are broken before the end of their term.
    
Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.Click here to invest in the Cannect Mortgage Investment Corporation.
Show notes:1:55 - Marcus predicted the bank rate hikes were media-driven over the last few months.
3:18 - Why Marcus thinks inflation issues might be exaggerated.
6:35 - Interest rates will go up. Where are they now?
8:34 - Media outlets and big brokers all thought we would see an overnight rate hike in January.
13:12 - Marcus still thinks the discount on the current variable rate is too good to pass up.
16:43 - Calling Cannect is the best way to determine the best course of action for your mortgage.
19:19 - The mortgage finance companies are setting the market for rates and banks decide when they want to compete.
21:00 - People are still in need of funds as a result of Covid
26:29 - Follow us at makemoneycount.com!

How Many Rate Hikes in 2022?

This week's episode was an information-packed one about the current state of our economy. All we hear about on TV are interest rates and inflation. People also look to the bond market to get an idea of where interest rates are going, but does this always paint the entire picture? Have a listen to the episode to get the full story!
Interest rates may be on the way up, but if the Bank of Canada raises them too fast, they could have even more problems to deal with. So until the variable rate continues to close the gap between it and the fixed rate, we still see it as the more attractive option. And remember, Cannect can lock you into a fixed rate in the blink of an eye when the time comes.
 
Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.Click here to invest in the Cannect Mortgage Investment Corporation.
 
0:00 - Intro1:43 - Theme of the episode: What the bond market and Canadian Banks are telling us about interest rates 3:07 - Background Info: Bond yields, interest and mortgage rates. 6:01 - The overnight rate: "The rate to end all rates"9:14 - The BoC still sees inflation as transitory 11:46 - Marcus does not see interest rates increasing as quickly as the bond market is predicting due to it being too costly to make a mistake. 13:22 - The 2 ways money has been pumped into the market: Monetary and Fiscal Policy. 15:39 - If we increase interest rates too quickly now, we'll have to spend even more money than we already have to continue fixing our economy. 18:22 - Inflation is largely coming from parts of supply chains attempting to increase their own profitability. 19:46 - A central bank can affect the economy just by talking. 21:26 - Where does Marcus see interest rates going? 28:13 - Why a repeat of the 80s is very unlikely.32:47 - The BoC and the bond market are taking different positions when it comes to inflation. 36:06 - Marcus predicts you'll be able to get a 5-year fixed rate within the next 3 months than what is on the market today
 

Mortgages! Refinancing! Investing! Oh My!

This week's episode is all about how to get the most out of Cannect. Whether you are looking to renew, refinance, make a purchase, take out a home equity loan, or make an investment, Cannect has salaried employees readily available to help you make these decisions. In fact, some of these employees shared their most frequently-asked questions on the show with us today. Have a listen to hear what those questions are.
The entire team at Cannect's top priority is simple: to get you into the lowest cost capital. Don't worry about whether or not you qualify, that's our job. Speak to one of our salaried representatives today to make sure you are in the best possible financial position you can be in.
 
Marcus Tzaferis and the Cannect Team0:00 - Intro2:45 - Justin introduces the theme of this week’s episode.
3:55 - Where do you start when you want to buy your first property?
10:52 - if you want to take a variable rate mortgage, how does one know when to lock in to a faxed rate?
14:40 - What rates can Cannect offer? Is this the only question one should be asking?
19:21 - Banks are incentivized to sell clients higher rates.
21:27 - How long does the mortgage process take?
23:01 - Looking to draw equity to invest? We have something to suggest!
26:17- How Cannect makes document collecting easy.
29:49 - Cannect’s job is to make you qualify.
33:15 - Ways Cannect will make your life better.
35:35 - Even after closing a deal, Cannect continues to work for the borrower.
36:40 - Why Cannect is a unique investment opportunity.

How To Become A Mortgage Investor

This week's episode examined Cannect from the investor's point of view. If you have heard us discuss our investment fund before and maybe wanted to learn a bit more about the advantages it can provide for you, then this is a great episode to have a listen to.
A point that we brought up on the episode a few times that we always like to reiterate is that know one will ever be more confident in Cannect as an investment than we will. Our directors are investors, our staff are investors, and the friends and family of our staff are investors. We always want our investors to feel like partners rather than investors. If you have any questions about the fund after hearing the episode, don't hesitate to give us a call. We'd love to speak to you!
Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.Click here to invest in the Cannect Mortgage Investment Corporation.
 
Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.Click here to invest in the Cannect Mortgage Investment Corporation.0:00 - Intro00:30 - Risk1:10 - Investing with Cannect 6:15 - From Borrower to Investor 8:00 - Finding someone you trust8:45 - What to do with the equity in your home13:30 - Win a Keg Gift Card14:15 - Your options with Cannect17:30 - Nick talks about why you should invest in Cannect 19:15 - Minimizing Risk 22:00 - Making investing less intimidating 23:50 - The importance of our Diverse portfolio 26:10 - Slow N Steady29:50 - Steady Income after retirement with Investments 33:00 - Matching Motivation Spelling Success

Tricks to Getting the Best Mortgage Rate

In this episode of Make Money Count Justin and Marcus talk about CLOWN blow up dolls, oh yeah and they also discuss how to secure the best mortgage rate for your situation. Marcus goes over the different types of rates and how they apply to different types of borrowers. The best mortgage now and forever and what that means for you, how Cannect can secure you the best mortgage for your situation and how that mortgage will be a solution not only just for now but forever.Justin discusses products for people that are self employed and how to qualify with your cash income. Wrapping up, Marcus and Justin talk about what it means when your bank says they have no options for you and what they actually mean (come to us!).
Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.Click here to invest in the Cannect Mortgage Investment Corporation.
 
0:00 Intro4:50 People's typical idea of a mortgage broker6:40 How to get the best mortgage rate7:30 The different types of mortgage rates are discussed9:00 How to get the best information regarding interest rates for your situation10:15 Discussing HomeOwners Insurance 12:00 The best mortgage Now and Forever14:27 Variable Mortgage Rates and when to Lock in16:20 Products for people that are Self employed17:15 HomeTrust and Fully Closed mortgages 17:50 Justin Holds really intense eye contact with the camera18:50 Lenders looking for Equity 20:55 First time home buyers with minimal declared income and high down payment22:20 The 3 big things that lenders want to see23:25 How to use your cash income to qualify for your mortgage24:10 Alternative/B lender interest rates26:40 When the bank says they have no options for you29:00 We hate unsecured lines of Credit30:30 Banks and collateralized mortgage charges31:44 Reverse Mortgages

Should You Invest In A Mortgage Investment Corporation?

This week's episode takes a deeper dive into Cannect MIC. Specifically, it goes into how Cannect generates returns for investors, how it mitigates the risks involved, and how it maintains motivational alignment between the borrowers and the investors. Have a listen to get the details.
If you were looking for more mortgage-focused information this week, go check out MakeMoneyCount.com to see previous episodes that are more centered on what you are looking to learn about. Or find Cannect on the social media platform of your choice.
 
Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.Click here to invest in the Cannect Mortgage Investment Corporation.
0:00 - Intro
4:27 - Introduction to Cannect MIC
6:00 - Cannect MIC differs from its peers because it is direct to its borrowers and direct to its investors.
7:56 - Cannect MIC has $2M subordinated behind the rest of the fund, so Cannect takes losses up to $2M before the rest of the investors.
10:45 - Marcus explains to a caller how Cannect generates its returns and mitigates risk.
14:01 - Matthew goes over a real example of how Cannect generated returns by helping a borrower get to lower cost capital.
16:50 - Credit is say easier to fix than people think.
19:18 - Marcus explains to a caller why the investment minimum is $2500 and the lockup period.
25:26 - Cannect keeps investors informed and engaged through its investor portal.
28:14 - Check out MakeMoneyCount.com to find old episodes and links to our social media.
29:46 - Matthew explains how millennials are looking to get more involved with their own investment decisions.
32:25 - Marcus explains what he found to be missing pieces in the mortgage industry and how he aimed to solve them throughout his time in the industry.

Is Now The Time to Lock Into a Fixed RateMortgage?

This week's episode explored the impact of monetary policy on current interest rates, and inflation levels. According to the Atlanta Federal Reserve, quantitative easing over the last few years had a negative 2% impact on interest rates. What does this mean for you? Now that it may be slowing down, does this mean it's officially time to lock in to a fixed rate mortgage? Have a listen to the episode to find out!
 
Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.Click here to invest in the Cannect Mortgage Investment Corporation.
0:00 - Intro0:52 - Even just speaking is a form of monetary policy for the Bank of Canada.3:50 - The impact of quantitative easing on interest rates and what removing it will do.5:14 - Are these inflation levels temporary?7:36 - Justin explains why there may not be much time left to call Cannect 13:12 - Chantel calls in to ask about getting a business loan.18:40 - Justin dancing to Thriller and discussing his Chris Farley impression.21:10 - Is now the time to lock into a fixed rate?27:04 - Elaine calls in to ask about consolidating her debt into a personal line of credit.30:58 - Marcus discusses why banks should take a more long-term view on their borrowers.32:35 - Cannect can help you build a plan to decide your most cost-effective plan to borrowing money.35:00 - Banks don’t discriminate in their lending practices by area.

How to Save Money on your Next Mortgage Renewal or Refinance

This week's episode discusses renewal and refinancing options. We go over the differences between a refinance and a renewal and when it is best to move forward with either decision. Determining the right time to break your mortgage is important in order to make the transfer as cost-effective as possible for you and Cannect can help you with just that.
Big banks are not going to look out for you, they are going to try and cross-sell you whenever they have the opportunity. It's so important to know what banks are motivated by and if you can use that to your advantage, you'll have a leg up on everyone else. Have a listen to get this understanding and also what to consider when deciding to purchase a rental property in order to maximize your long-term earning potential.
 
Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.Click here to invest in the Cannect Mortgage Investment Corporation.0:00 - Intro0:32 - Refinancing VS renewal2:00 - Hammer down to lowest possible rate then shop around4:00 - Bank of canadas and federal reserve overnight rate or prime rate7:00 - Effect on the economy of stimulus and Banks cross selling products10:00 - When you should lock in15:00 - Breaking your mortgage at the right time20:00 - Bonds yields go up mortgage rates go up and penalties go down24:00 - Understanding what banks are motivated by and figuring out ways to use that to your advantage27:00 - What to consider when Purchasing rental property

Bank of Mom & Dad: Should Parents Help Their Kids Buys A Home?

This week’s episode explored a few topics. The first being a report that millennials are looking to their parents for loans more than past generations. The next being the Cannect exit strategy: what is it, and how does it work? Take a listen to explore these topics with us.
 
 
One thing that is quite clear in this industry is that Canadians pay WAY to much for home equity loans when their banks decline them. We are at a point where pricing is determined exclusively by supply and demand instead of by the amount of home equity, the way it should be. Cannect is determined to bring the Canadian mortgage marketplace closer and closer to that point. Our commitment is to improve the financial well-being of our borrowers and we would love to do that on as large of a scale as possible.
 
0:00 - Intro0:35 - Article shows millennials are relying more on loans from their parents to enter the real estate market than previous generations.
2:11 - Marcus explains how low interest rates leading to higher asset prices is a factor for this.
4:37 - Cannect can help structure a credit facility within the family.
8:14 - Justin and Marcus answer an email question about drawing equity out of one’s property to invest it.
10:58 - Cannect MIC is an option for investing this drawn equity.
13:59 - Cannect’s goal for every client is to make sure they are well informed.
15:52 - Borrowers come to Cannect to improve their financial position.
18:57 - Education, weddings, and many more large expenses are regularly paid for by parents even if it puts them in a financially vulnerable situation.
20:46 - The Cannect “exit strategy” is simply taking a borrower from one debt position and bringing them into a lower-cost one.
23:47 - A listener emails in who may be in a better debt position than she thinks.
28:23 - “The cure to anxiety is creativity”. Take action and make the call to see if you can improve your debt position.
32:42 - Canadians with ample home equity still find themselves paying way too much in interest.
34:45 - OSCAR is Cannect’s sophisticated mortgage underwriting technology.
37:31 - Like Googling your symptoms to make a self-diagnosis, finding the solution to your debt situation through Google can be difficult.
38:48 - Use Cannect as the resource to help you unlock and/or park your equity.
 

Renewing Your Mortgage: How to Beat the Bank at Their Own Game

This week's episode was centered around the mortgage renewal. People think that they are doing themselves a favor by accepting their lender's offer right when they contact you just to get it off your plate. We also continued with our previous show's conversation regarding interest rates and the direction they are taking. Whenever interest rates start to go up, variable rate borrowers should examine whether or not now is the time to lock into a fixed rate mortgage. Have a listen to learn how to get the best rate on your renewal and to get some insight on whether or not now is the time to lock into that fixed rate.
If your mortgage is coming up for renewal soon, try out the tips from this episode! If you already forgot what they were or just didn't feel like listening this week, give Cannect a call instead. We can help you get the best renewal rate possible, even if it means switching to another lender. All the work that's involved with making the switch, we'll take care of it.
0:00 - Intro4:46 - The culture of any company starts from the top.7:25 - Justin discusses the image people in finance have and how Cannect looks to hire “real” people.10:59 - Caller question about term length options for a mortgage and how your ideal option may change based on your credit score.18:40 - Justin explains the difference between renewing your mortgage and refinancing your mortgage.20:10 - Marcus discusses the stress test that was implemented a few years ago and the aftermath of it coming into effect.28:47 - What happens if you don’t renew your mortgage?30:48 - Marcus explains the bank’s mortgage renewal process.34:00 - A caller asks if now is a good time to lock into a fixed rate.
 

Bank of Canada Says Use A Mortgage Broker

Back in 2006, the Bank of Canada produced a report that does a great job highlighting why Canadians should be using mortgage brokers. Did you know that the banks discriminate based on loyalty? Have a listen to the episode to hear more surprising facts from the article.
 
Ultimately, all of these benefits to using a mortgage broker can be summarized to simply having someone in your corner when it’s time to renegotiate your mortgage. The misconception about them is that they are just 3rd parties that get added to the transaction and their commissions come from your rate savings. Mortgage brokers get paid by the lender of your mortgage, not you. And if you don’t follow through with the deal, you don’t owe us anything! The unbiased advice our agents provide is free of charge. Our only objective is to make sure all of our borrowers are in the best mortgage suitable to their goals and needs. Never hesitate to give us a call to find out if there's a way your mortgage situation can be improved.
 
Marcus Tzaferis and the Cannect Team
0:00 - Intro
5:32 - What is a mortgage broker?
6:47 - A Bank of Canada report from 2006 shows the true benefits of using a broker.
11:47 - Caller question regarding the refinance of a commercial mortgage.
17:39 - Marcus and Justin discusses why and how banks may not have your best interests at heart.
21:41 - Justin explains to a caller how going to a mortgage broker is the best way to get free, unbiased advice for your mortgage situation.
24:43 - Matthew explains how an evaluation of your investment options relative to the rate you can borrow is imperative prior to a mortgage refinance.
26:40 - Cannect’s main goals are moving borrowers to lower-cost capital and optimizing the efficiency of their mortgage.
32:08 - Marcus takes a look at bond yield changes over the last 15 days and discusses how they may impact fixed-rate mortgages.

The Cannect Mortgage Investment Corporation

This week's episode is all about Cannect's investment vehicle, Cannect Mortgage Investment Corporation (Cannect MIC). Since 2013, we have been lending home equity loans to borrowers who need to repair or build their credit score, income, or their property. This won't be news to our longtime supporters and podcast listeners, but have a listen to this week's episode to learn more about Cannect from the investor's point of view.
Cannect's goal is to generate stable, consistent returns that are uncorrelated to the stock market. It can be a great complement to a diversified investment portfolio. If you have any questions about our MIC, give us a call anytime to learn more.
0:00 - Intro4:22 - How Cannect adapted to COVID-19 with its investment vehicle and borrower base.6:51 - Improving credit simply comes down to removing any unsecured debt balances by using a borrower’s home equity.8:17 - How does a Mortgage Investment Corporation work and how Is Cannect MIC different.15:56 - How does Cannect evaluate borrowers for the MIC?19:13 - A listener calls in with a question regarding where credit data comes from for credit reports.22:58 - Marcus shows Cannect’s investor portal and website.30:24 - Marcus provides examples of registered account opens that can be used to invest in Cannect MIC and some of the advantages they provide.32:09 - A listener calls in seeking advice on drawing more money at his mortgage renewal and Marcus presents investing that money into Cannect MIC as an option.38:40 - Quick last call taken regarding the use of registered accounts prior to retirement.

Reverse Mortgages: Are They Right For You?

We have discussed reverse mortgages on the show before, but this week we took a much deeper dive. We explored what it is in the most basic terms, the pros and cons, whether it is sufficient for retirement income, the age requirements, the equity requirements, and how it factors into your future estate. Have a listen to the episode below to get all of these answers.
 
As far as we explored the reserve mortgage, the main takeaway from the episode should still be that Cannect's objective is to find the right mortgage for everyone that calls us. There are so many great financial products out there, but if you just walk into a mortgage lending company that offers reverse mortgages and ask for one, they'll give it to you. The agents at Cannect will ensure that there is no superior product out there before recommending a reverse mortgage to you. It is a great product, but only if it is absolutely necessary. A call to Cannect might be exactly what you need to find out what that ideal product for you is.
 
0:00 - Intro
2:42 - What is a reverse mortgage?
3:34 - What makes a reverse mortgage attractive?
4:35 - Limitations of a reverse mortgage
8:29 - An alternative for accredited investors might be borrowing money to invest.
11:20 - A reverse mortgage in basic terms.
13:19 - An email from a listener looking at debt consolidation options and how his family can potentially help.
19:29 - Small percentage changes to your debt can be life changing.
21:38 - Can a reverse mortgage be used as a primary income source during retirement?
25:34 - Ideal age for a reverse mortgage and planning it with your retirement and future estate.
30:00 - The product range the Canadian mortgage market can have is advantageous to the consumer.
32:08 - The reverse mortgage is a great product, if it needs to be used.
36:20 - Text question from a listener about taking equity out of his home to assist his daughter make a down payment.
39:33 - Text question from a listener about getting turned away from a reverse mortgage lender.

How To Fix Your Bad Credit

This week's episode talked about two important aspects of today's lending landscape: credit and modern technology. Credit has been essential to securing low-cost capital forever. While everyone thinks that bad credit is impossible to repair, it is in fact the complete opposite. Have a listen to the episode to get a better idea on how credit can be improved.
 
Technology, on the other hand, is rapidly improving and always changes the way we see the mortgage industry. As you'll hear in the episode, Cannect invested in its own technology many years ago that aimed to ensure all of our customers are in the healthiest long-term financial position they can be in. If one of our customers, even those we served many years ago, has a way to save money by breaking their mortgage or locking into a fixed rate mortgage, we will alert the customer of this opportunity. Without the technology and the people, Cannect would not be the company it is today.
0:00 - Intro
0:55 - An uncertain economy can ruin credit, but it can easily be repaired.
3:36 - Matthew explains why Canadians should start a dialogue on improving their financial situations.
5:39 - Marcus elaborates on why a mortgage broker can be that trust person to speak about your financial situation with.
10:30 - The banks only have certain tools to help you, and their profitability comes first.
17:19 - Canadians are becoming more well informed on the limitations of their bank’s advice.
19:34 - Cannect’s people and technology are its driving force.
27:03 - Marcus explains some differences between borrowing in Canada vs Europe.
29:48 - Email question from a borrower whose bank told her to seek out a broker.
34:26 - It’s more profitable for banks to lend unsecured credit than to refinance a borrower’s mortgage.

Who Is Cannect Home Financing?

This week's episode goes through the entire business of Cannect Home Financing, the best Mortgage Broker in Toronto. From the brokerage side, to the private lending side, and the investment side, Cannect was designed to help anyone looking to improve their financial situation. Have a listen below to hear about how they all tie together:
 
As we mentioned, nothing ties the business together like its motivational alignment. Our borrowers are motivated to make consistent payments to improve their cost of capital in a timely manner and our investors are motivated to earn a return from quality home equity loans. The final tie to these two groups is the exit strategy that our brokerage provides to the borrowers. These three groups working together is what completes Cannect's business model.
 
0:00 - Intro
1:22 - Information is an easy way to make a difference in the mortgage space.
3:56 - Matthew shares a story about how Cannect helped a couple pay their credit card debt and finance their business through their home equity.
8:48 - Marcus explains how Cannect helps borrowers through it’s investment capital.
12:30 - Justin talks about how Cannect can help borrowers by asking questions to the lenders they didn’t even know they had.
13:34 - Marcus explains how Cannect is positioned to serve borrowers and investors without bias.
19:06 - The conversation to a better mortgage solution starts with a broker.
21:08 - Justin outlines a standard call with Cannect.
23:20 - Marcus explains why Cannect has an “elegant” business model.
32:20 - Brenda looks for a home equity loan solution from Cannect.
35:20 - Justin and Matthew clarify how quickly bad credit can be repaired.
37:25 - Don’t take advice from the wrong people in uncertain economic times.

Why Should You Use A Mortgage Broker?

This week’s episode is all about being well informed. What does this mean? Knowing your mortgage time horizon, knowing what lenders are out there, knowing what resources are available to you as a borrower. The big banks thrive on fear and a lack of knowledge that their borrowers possess. Have a listen to the episode to learn more important-to-know information, answers to some caller questions, and a dive into the mortgage renewal process.
As you’ll hear at the end of the episode, we have a new mortgage TV show on CHCH TV every Saturday morning at 8:30. Starting this weekend, tune in to watch our show live! We are very excited about it and you should be too.
Hope you are having a great end to the summer.
 
If you're looking for a stable investment, take a look at the Cannect Mortgage Fund.
Subscribe for more!
PODCAST:===============================Apple - Spotify - iHeart Radio - Podbean
SOCIAL:===============================♪ - TikTok - FACEBOOK - TWITTER - Instagram - LinkedIn
 
0:00 - Intro.3:07 - Marcus explains why you need to be informed when you walk into your bank to discuss your mortgage.10:59 - Karin calls in to ask what the most flexible mortgage options are.14:17 - Anastasia calls in to ask about her current home equity loan offer.18:00 - Justin explains why it’s beneficial to have a broker in your corner during the mortgage process.20:41 - Amir calls in to ask if a home equity loan can be helpful to erase his credit card debt. 26:35 - Vikki calls in to ask about getting a lower rate on residential and commercially-zoned property.32:17 - Marcus explains the mortgage renewal process, whether it’s with your current lender or a transfer to another.37:27 - Cannect’s new TV show.

The Difference Types of Mortgage Lenders

This week’s episode gives an outline and history of the different lending options in the Canadian mortgage marketplace. If you’ve seen a mortgage broker, you’ll know of these mortgage finance companies like First National and MCAP, but the majority of people still only think of the big banks as the optimal lending options. Have a listen to this week’s episode to learn more about the backgrounds of these mortgage finance companies and how they came into fruition.
Pay special attention at around the 25-minute mark where we explore the concept of open banking. Many countries around the world have been able to leverage the idea with innovative fintech solutions, but not Canada. The big banks have so much lobbying power with the federal government and they stand to lose a lot of the control they have over the Canadian consumer if their data were to be shared and used in innovative products. Hopefully Canada doesn’t reach this point embarrassingly late.
 
If you're looking for a stable investment, take a look at the Cannect Mortgage Fund.
Subscribe for more!
PODCAST:===============================Apple - Spotify - iHeart Radio - Podbean
SOCIAL:===============================♪ - TikTok - FACEBOOK - TWITTER - Instagram - LinkedIn
 
 
 
0:00 - Intro2:02 - Marcus outlines the different types of lenders in the Canadian mortgage market, how they differ, and their history.11:22 - Iain recalls when he learned the true intentions of the banks.16:34 - Sarah calls in to ask about the rate offer she received from a mortgage finance company through her broker.20:27 - Marcus summarizes the advantages Sarah is facing by going with a mortgage finance company like MCAP.21:52 - Jack calls in to ask about the service mortgage finance companies can offer compared to the banks.25:05 - Marcus explains how the banks are holding fintechs back from leveraging open banking.29:36 - Tina calls in to describe her situation and to ask if a renewal or a HELOC is the better option.36:23 - Justin wraps up the show by reminding listeners that they should be breaking their mortgages.

Mortgage Brokers Explain How to Profit From The Banks!

This week’s episode fielded several caller questions. The Cannect team went over strategies to help get a better rate from your bank, the reasons people may have for breaking their mortgage, and dove into the bank’s true motives when dealing with their most loyal customers. Marcus, Justin, and Matthew outline their stories of how they got into the mortgage industry and what qualities and skills can help people thrive in it. Have a listen to the episode below:
 
If there is one thing to take away from this episode, always tell your bank that you are rate shopping. Your bank counts on you to not look anywhere else for your mortgage renewal. As soon as you tell them that you are looking at other options, even if you aren’t, you’ll see that the banks will have wiggle room in the rate they can offer you. Their obligation is to their shareholders, not you. So if they know they might lose you and take a profitability hit because of it, it’ll usually be in their best interest to reduce the rate a bit.
 
0:00 Intro
0:42 - Marcus, Justin, and Matthew explain how they got to where they are today.
6:10 - What skills and qualities can make someone a good mortgage broker?
10:45 - Alex calls in to go over whether it is worth it for him to go to other lending options to consider breaking his mortgage.
15:15 - Why do so many people break there mortgage?
19:12 - Nancy calls in to ask about commercial mortgage rates.
24:06 - Ahmed calls in to ask why the rate his bank is offering him at renewal is more than what other institutions are promoting.
33:07 - Steve calls in and Cannect explains asset-based lending.
36:47 - Justin explains why borrowers should always tell their banks they are shopping around.

Mortgage Brokers Explain How To Break Your Mortgage

Breaking your mortgage and the penalties associated with it is the topic we tackle this week. We had three callers, along with Iain, explain their current mortgage situation and what they face to get out of it. As you’ll hear, sometimes the penalties are minimal and your lender will try to hide that from you, but other times it is substantial. Have a listen to this episode to learn how the penalties get calculated yourself.
There is so much to take away from the scenarios these callers are facing. As long as you have a fixed-rate mortgage, the break penalty calculation will always remain the same:
Step 1: Calculate the discount you received from your bank by subtracting the rate they gave you from the 5-year fixed posted rate at that time.
Step 2: Find the difference between the current posted rate you’d pay for a mortgage to finish your term and the discount you received.
Step 3: Calculate the Interest Rate Differential (IRD) by taking the difference between the rate you received and the step 2 difference.
Step 4: Divide the IRD by 12 to get the Monthly IRD.
This is what the bank wants to recover from you from leaving your deal early. Multiply the monthly IRD by the remaining balance and the number of months remaining on your term to get your penalty to break. If you don’t want to take the time to calculate this, no problem. Cannect will do it for you. Just give us a call and we’ll let you know if the numbers work for you to save long-term.
Podcast Notes:
0:00 - Intro2:02 - Iain tells the story about his break penalty.5:45 - Marcus explains why it is best to have various financial products from various banks.8:25 - Calculating mortgage penalties.11:39 - Daniel calls in to discuss his mortgage penalty.23:00 - Josh calls in to discuss his mortgage penalty.31:30 - Additional tricks and tips for Josh’s situation.34:58 - Marcus explains his recommendation of Mortgage Financial Corporations.36:21 - Sandy calls in to discuss switching away from her current Scotiabank mortgage.

Investing or Borrowing? Everything you need to know about Private Mortgages

Dealing with private lenders can be tricky. They often see good borrowers in desperate situations. These lenders often have to pay a lot of third party fees for deal origination and advisor commissions, so they need to make that up from the borrower. Without information, these borrowers can be exploited as a result. Have a listen to the episode to get the details.
As we mentioned in the episode, a lot MICs out there have to pay fees to brokers to get them deals and to advisors to get them lending capital. These simultaneously increase the rates and fees they have to charge borrowers to lend money and decrease the rate of return for investors. Cannect’s ability to generate its own deals and raise its own investment capital means that people can borrow at a cheaper rate and investors can earn a better return. Cannect prices based on only two things: home equity and exit strategy, so we never take advantage of a borrower’s level of desperation to price higher. If the rate you get from a private lender sounds ridiculous when you have a lot of equity in your home, it probably is. Cannect will have a better rate for you and our salaried staff will work with you to get to lower cost capital afterwards. 
Give us a call today: 416-766-2666
Notes:
0:00 - Intro1:15 - What is a private lender?6:45 - How Cannect is different from other private lenders.13:20 - Marcus provides a solution for lending behind a collateralized charge in second or third position.16:35 - The elegance in the solution is the exit.19:10 - Marcus outlines Cannect’s cheaper pricing terms to a prospective borrower.25:44 - Cannect’s requirements to offer a home equity loan.27:13 - Marcus explains the bank’s incentives to a caller examining a refinance.
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