Make Money Count

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.
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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!
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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.
#MakeMoneyCount #Cannect #Mortgages

The Traveling Wilburys Needed a Mortgage Broker

This week’s episode had it all: Caller questions, tips for evaluating your mortgage breaking options, and classics from the Travelling Wilburys. Our callers each had situations that everyday borrowers can relate to. Being turned away from borrowing more due to being self employed, and needing money to support a small business that is struggling from COVID. So many people have experienced these situations and they are exactly why Cannect exists. Have a listen to hear how Cannect can help.
Some key points that we really want to emphasize are:
1.      Even if you know to break your mortgage to save long-term, call us to help reduce your break penalty.
Determining whether or not you should break your mortgage is not as hard as you think. It just comes down to one calculation: The amount you would pay in interest on your current mortgage over the rest of the term, minus the amount you’d pay in interest over that time period if you broke it and secured a lower rate, minus the penalty to break your mortgage. This penalty tends to be quite high, and it is usually the factor that prevents people from going through with a mortgage break. If you think that may be the case, still give us a call and see if we can reduce this for you. We have found that over the last ten years, we have been able to engineer a break penalty 20%-25% lower than initial quote from the bank to break it. Those savings go directly into your pocket, no one else’s.
2.      Your bank may match a lower rate you get elsewhere, but it will still come at a cost.
As soon as the bank offers to reduce your rate to match a competitor, they will factor that discount into the break penalty you’d be charged to get out of it. It’s not going down; it’s going up to make up for the reduction in their interest income. Big banks are legally allowed to charge higher break penalties than other mortgage lending institutions. Even if they disclosure this to you directly and say that you ‘probably won’t have to break’, remember that 75% of Canadians break their mortgage before the end of their term. Even if your bank matches the offer you get elsewhere, it will usually come at the cost of a higher break penalty.
Breaking your mortgage is always an option to you as a borrower to improve your long-term savings. You can determine the savings yourself based on rates you see online, but give us a call to get that pre-approval and really get that exact savings number. Who knows, maybe we’ll even be able to get that penalty reduced to save you even more.
0:00 - Intro1:38 -  Marcus discusses how the banks make their profits and how you can reduce the amount you pay them.5:42 - Cannect’s approach and goal to helping you as a borrower or an investor, with an example purchase scenario.13:03 - Marcus discusses how Cannect can price home equity loans through its website and fund within 24 hours when banks turn you away from borrowing more.20:25 - Borrowers may look to resolve their financial situations now that we are emerging from the pandemic.24:10 - Justin explains how businesses can get commercial loans, private or through a B lender, if their bank says no.27:56 - The worst thing banks can do to their borrowers is waste their time.36:55 - How banks make up for having to match a lower rate from a broker.39:46 - Important facts about Cannect’s investment fund.

Must Know Mortgage Information

This week’s we zone in on home equity loans. There is a tug of war going on right now between interest rates and inflating asset prices that’ll dictate where housing prices will go over the next several years. This adds a lot of uncertainty to people looking to enter the real estate market for the first time, but it will also greatly impact those already in it looking to take out home equity. A short-term home equity loan may be your best option. You may have missed the episode live because you were watching an amazing Euro Finals, but have a listen to it now to learn some helpful tips for evaluating your home equity loan options.
Three helpful considerations in order to get the best product FOR YOU are:
1.      Time: Whatever amount of time you think you need the money for, add three months. Lenders will reduce rates if you are precise with the time you need the money for because they want to be able to lend your money right back out again after you paid it back. If you underestimate how long you need the money for, you’ll be forced to renew for another term and get hit with fees in the process.
2.      Amount: Similar to the time aspect, understating the amount of money you need also leads to extra fees if you go back to them for more. They will always try to give you less than you need as a result. So know your number, and make sure you get it or as close to it as you can where you know you won’t have to go back.
3.      Exit Strategy: This is by far the most important. Lenders always want to know how their borrowers plan to exit the deal. If you can communicate a clear and reliable plan to the lender for how the funds will be used and then returned, you’ll find they can be much more flexible on the rate they offer you.
These are important aspects of all home equity loan that lenders take very seriously. However, there are also questions that you as the borrower should be asking your lender before coming to an agreement:
1.      How long will it take to close the deal? The longer it takes, the your more debt continues to increase and your credit score decreases. Make sure your private lender can close the deal quickly.
2.      Are there any hidden fees? Once you get closer to the closing date, lenders know that time is no longer on your side and if there are any fees you don’t know about yet, you may find you don’t have a choice anymore. Ensure you know all the fees that may be involved, from the lender, any appraisal, and legal costs, before proceeding with the deal.
3.      Don’t be afraid to ask the lender if they have dealt with other borrowers in your situation, and if so, what rates did they pay. Lenders and brokers are governed by regulators and they aren’t allowed to unfairly price gauge their borrowers. Make sure a lender does not detect desperation in your voice and upcharge you because of it.
Information is your friend in this space. The more you know about what lenders are looking for in a good borrower and what you need from them, the more you will be able to save long-term.
#Cannect #HomeEquityLoan #HomeFinancing #MortgageBroker

Banks Profited $40 Billion Through The Pandemic

We hope you all had a great Canada Day weekend. This week’s episode takes a deep dive into the profitability of our Canadian big banks. Did you know that these banks, on average, have been profiting $4,000 per Canadian household over the last year? While the services of the banks are essential to households and our economy as a whole, it is important to know how to avoid being taken advantage of. Have a listen to this episode to get a better understanding.
Here are some important takeaways to consider.
Loyalty is not always your friend.
We have discussed this in a few episodes now, but for a good reason. If you are under the belief that your bank is your only option for credit, they will leverage that. A lot of borrowers have a mortgage with their bank with a collateral charge that exceeds the amount they borrowed and because of the stress test, they still can’t increase their mortgage. When the banks talk about your unsecured credit options, that’s when it’s time to call Cannect. The unsecured options will destroy your credit if you keep their balance maxed out for too long. Seek out other options, a mortgage broker will help you do that.
They’re called the Big Banks for a reason.
Their profitability comes from their size. They have the ability to hold off the competition because of their size and brand awareness. 20 years ago, only 20% of Canadians used a mortgage broker. Now that number is up to 40%, but still well-below the US at 80%. The banks’ residential mortgages become less profitable as more Canadians turn to mortgage brokers, but the banks went through this problem before with Trust companies. When companies, like Canada Trust, started providing discounted rates, it ate into the big banks’ market share. As a result, these companies were acquired by TD and other Big Banks.
The banks will always be able to adapt, so it’s always up to us as the consumers to recognize that we can be a David to their Goliath at times and learn about our opportunities to save through other options. Cannect agents are happy to discuss these options with you anytime.
Marcus Tzaferis and the Cannect Team
#Cannect #MortgageBroker #CanadianBanking

How To Refinance Your Mortgage

Marcus, Justin, & Matthew once again join Iain Grant, host of Newstalk's 1010 Radios' Ask The Expert, for a deep dive into the world of renegotiating and refinancing your mortgage.
Purchasing a home can be one of the most stressful situations in your life, and trying to renegotiate the terms of that purchase years down the line may seem like a daunting task that you're going to avoid at all costs. But truthfully, there may be a chance you're leaving thousands of dollars on the table as your equity sits doing nothing, so why not look into what options are on the table for you?
Refinancing is the term used to renegotiate the terms of your mortgage. Why would you do that? Well, perhaps you want to lower your month to month payments? Maybe you want to access some of the equity in your home now that it's gone up in value? Maybe you want to shorten how long it will take to pay off? Whatever the reason, you shouldn't be the one negotiating this contract.
The team at Cannect is trained to negotiate these terms and find you the best product available in the market today. Your bank might not be the best choice when it comes to your new mortgage. You're already a client of theirs, and they know how much this intimidates you. 
You shouldn't have to do this work. You should have the best options available to you all the time. Those options come from Cannect.
If you're looking for a stable investment, take a look at the Cannect Mortgage Fund.
Subscribe for more!
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How a B-Mortgage Can Fix Bad Credit

Marcus, Justin, & Matthew join Newstalk 1010 host Iain Grant once again as the gang tackles the discussion of B-Mortgages and Bad Credit.
Don't forget to tune in Live every Sunday at 3pm for brand new episodes of Make Money Talk, The Mortgage Show on Newstalk 1010!
If you're looking for a stable investment, take a look at the Cannect Mortgage Fund.
Subscribe for more!
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Mortgage Broker Explains Reverse Mortgages

Last weekend, Matt and Marcus took to Newstalk 1010 to discuss a product most people know of, but very few fully understand: the reverse mortgage.
People often go to their banks to inquire about it as an option to supplement retirement income, but that is not the best course of action for everyone. Have a listen to the episode to learn more about the reverse mortgage as a product and if it may be the best option for you.
We go into good detail on the episode, but one thing to take away is that it’s always ideal to give a mortgage broker as much detail as possible about your financial situation so that they can set you up with the right product. The products and rates you qualify for will depend on so many factors like how old you are, how much equity you have in your home, whether or not you have a pension or investments to supplement your retirement income.
A reverse mortgage may be your best option, but you might be able to qualify for a much cheaper home equity line of credit at that bank or elsewhere if you have enough pension or investment income supplementing your retirement. The rate difference on these two products can be 2-3%! Let a mortgage broker know your particular situation so you can get the best product available.
 
If you're looking for a stable investment, take a look at the Cannect Mortgage Fund.
Subscribe for more!
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Qualifying Rates for Canadian Mortgages?

Join us for another Episode of Make Money Count, now recorded live every Sunday at 3pm EST on 1010 Newstalk.
Marcus shares his thoughts on the new qualifying stress test for Canadian mortgages, and shares his ideas on why that shouldn't be reason alone to rush into the market.
Starting June 1, Canadian home-buyers will face tougher mortgage stress test rules that will decrease the buying power of most borrowers. The move, announced by the country’s banking regulator in May, was in response to an overheated market that has already started to see signs of cooling.
Even prices in the country’s largest market have started to stall. The average selling price for the Greater Toronto Area was $1,090,992 in April, down slightly from $1,097,655 the previous month, according to the Toronto Regional Real Estate Board.
The new mortgage stress tests will affect Canadian homebuyers applying for or renewing a mortgage.
The new qualifying rate on uninsured mortgages – where the down payment is more 20 per cent or more – is now either two percentage points above the contract rate, or 5.25 per cent, whichever is higher.
Before June 1, any buyer whose down payment was 20 per cent of the purchase price or more had to show they could afford mortgage payments if the interest rate was two percentage points higher than what the bank is offering them or 4.79 per cent, whichever was higher.
 
If you're looking for a stable investment, take a look at the Cannect Mortgage Fund.
Subscribe for more!
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Ask A Mortgage Expert! on Newstalk 1010 Radio

This past weekend, your two favorite podcast hosts took the show to Newstalk 1010 Radio! In this one-hour special, we highlighted the advantages of using a mortgage broker for unbiased financial advice instead of your bank, discussed the impact of COVID-19 on the landing landscape as well as the consumer, and took incoming calls from live listeners. Have a listen to the episode HERE (link).
A lot of you who have listened to previous Make Money Count episodes will already have heard a lot of the points discussed. But a couple of key points to always keep in mind:
1. Your bank’s priority is to their shareholders, not you.
Your bank knows that the average borrower thinks they are the only place to turn to when they need a mortgage or need any form of loan. They likely are not offering the best rate available to you, and they’ll limit your credit options if you need to access more capital in the future. A mortgage broker will shop you around with several different lenders to get you the best rate possible and will give you unbiased financial advice if you need to access home equity in the future.
2. Secured vs Unsecured debt: Go with secured.
If your bank only offered you credit cards and unsecured lines of credit when you needed help, the interest on it will be much tougher on your long-term finances than debt secured against your property. If you own property and have the equity in your home, the rates you will be able to get from secured debt will be much lower. If your bank won’t present secured options to you, go to a mortgage broker.
3. The Cannect difference? Salaried staff and a streamline process.
Any mortgage broker can help you, but our salaried staff won’t ever pressure you into making any decisions. All we want to do is lay out all the options for you to help you make the best decision FOR YOU. And with the help of our in-house technology, we have the ability to go directly to borrowers and investors. Without fees to 3rd parties, we can lend cheaper and generate greater returns for investors simultaneously.
Look out for us on more live shows in the near future. Feel free to call into them with any questions, or just reach out to us directly at 416-766-2666.
 
If you're looking for a stable investment, take a look at the Cannect Mortgage Fund.
Subscribe for more!
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Weighted Average Cost of Capital

For those of you who are analytical thinkers, we’ve got a good one for you this week! This is the episode where we show you how Cannect, as a brokerage, lender, and investment fund, can maximize value and savings for you all at once. The weighted-average cost of capital (WACC) is the net, overall rate that a borrower pays to service all of their debt. Many people come to us in messy situations with multiple existing debts. The first thing we do is calculate their WACC. By refinancing and restructuring their debt, whether it be through a 1st mortgage refinance, a new home equity loan, or a mix of both, our goal is to get the borrower in a position where they are paying less money to service their debt annually than they were before. This may sound complicated, but have a listen to the episode where we describe this further and take you through real examples of improved financial situations where we helped people reduce annual debt payments.
A lot of people don’t see this as something they can do because of costs associated with breaking their debt agreement. Yes, these costs can be high at times, and sometimes just not worth it. We can apply the cost of breaking the debt agreement into your new debt servicing charges and see if it can save you money in the long term.
I’m sure many of you have also heard the saying “Time is Money”. That couldn’t be more true here. When analyzing an individual’s debt servicing situation, we account for not only its cost, but also the time it will take to pay the debt back. Can we get you into a situation to pay a certain debt faster, or do you see yourself being able to pay off a debt in the near future? These are additional factors that make every WACC and debt servicing solution unique.
If you didn’t even make it through 5 minutes of the episode, we get it. These situations are all complicated, stressful, and boring at times. These are the problems we find solutions to so you don’t have to. We will determine the best course of action to improve your debt servicing costs and overall financial position. 
Just give us a call, we’d be happy to help you just as we did in this episode.
#WACC #MortgageRates #InterestRates #Cannect #Investing

What Is A B-Mortgage?

We have a bit of a different podcast this week. Hopefully we can shed some light on a subject that has a bit of an undeserved stigma in the lending world. Most people don’t know what really separates the A side from the B side and what can be done to move you up. We dive into these topics and more.
What surprised you the most about each lending side? We may have an idea:
Owning several properties is a good thing, right?
Sure, but not to your bank. Owning real estate may be a great way to benefit from value appreciation and streams of income, but your bank will only see the liabilities and expenses of the ownership. A-lenders will always hesitate to approve you for a good rate if you own a lot of real estate, so you may find yourself on the B side for this reason alone.
Bad credit is SO easy to fix.
If credit is the only reason you don’t qualify for an A deal, you are in luck. If you have enough home equity to turn your unsecured debt into secured debt, it should not take long to lower your debt servicing costs and get you with an A-lender.
Everyone’s situation is unique, a mortgage broker can make a plan that’s best for YOU.
No two people are the same. You may be a high-salaried employee with a recent blemish on your credit report, a self-employed business owner with flawless credit, or you may have a strong salary and credit score, but own many properties: the A side is going to think twice before giving you an approval. By going to a mortgage broker, they can tailor a plan to perfectly fit your needs. At Cannect, we can do this for you for FREE. If you go to your bank, they will just tell you that you don’t qualify, maybe offer you a line-of-credit, or tell you to look at the B side. By going to a mortgage broker like Cannect, whether it’s finding you the best B deal available or giving you a small home equity loan to improve your credit, we can repair your particular situation and get you on the best path back to the A side and long-term savings.
Just because Ontario is back in a lock-down, it doesn’t mean you’re locked-down into high-cost capital. We hope you enjoy the spring and stay safe.
#Cannect #MakeMoneyCount #BMortgages

Inflation is Coming!

Inflation is coming, make sure your mortgage is ready. 
A Quick Guide to save money on your mortgage in the next two weeks!
Last week we found out that even though we have been in a lock-down, inflation has started to creep up. Yesterday the Bank of Canada (BoC) said that they are going to start slowing down their bond purchases. These two statements are directly linked to your mortgage rate. If you haven't compared your current rate to the rates available on the market, now is the time.
You can be forgiven for not wanting to deal with your mortgage over the past few months. But you should know that more than 80% of Canadians are losing money on their mortgages. 
It is almost certain that the rate on your mortgage is too high relative to what you should be paying. If you're an existing Cannect borrower, this doesn’t apply to you, our mortgage manager software analyses every mortgage file we have to identify savings and alerts an agent to notify you. BUT, if your mortgage was done directly with any lender in Canada, you should know that they have no obligation to inform you that you might be able to save money by paying them less in interest. 
You need to know that interest rates have already started increasing, they always start moving slowly and then move faster, that’s the way the market works. 
STEP 1:Let’s start off by addressing the elephant in the room! Here are the three main reasons you don’t want to even look at your mortgage:
You dread what the mortgage penalty to break it might be.No need to stress about this. In many cases, we can lower your rate with your existing lender. In others, we can reduce the penalty significantly, and at the very least we can monitor your mortgage until savings come available or your mortgage is coming closer to maturity.Thinking about collecting paperwork gives you anxiety.This is our job! Not yours, you focus on things you need to and let the Cannect team do this. Our technology and mortgage knowledge make the process easier than ordering a coffee.Shopping for the lowest rate SUCKS!There are so many rates out there, so many lenders, so many brokers. We know! That's why we have a team searching hundreds of lenders to get you the best rate, every time, guaranteed!
STEP 2:Once you have decided to move forward with analyzing your mortgage for possible savings, we need to figure out what type of interest rate you should be switching to.
Three factors should influence your decision as to what your next mortgage rate should be:Time: How long do you plan on keeping your mortgage for?Risk Appetite: How willing to absorb an interest rate increase are you, or how much are you willing to risk to save money with a variable rate mortgage?Where is the economy heading?
STEP 3:The way you answered the question from step 2 should leave you selecting one of 3 mortgage products today:
A 5 Year Fixed Rate starting at 1.60%A 5 Year Variable Rate starting at 1.0%A 10 Year Fixed Rate starting at 2.60% 
Rates are always changing, and although these are not likely to be lower anywhere else, we will constantly be checking. Trust is an important part of this process, you need to trust that the rates we provide you with are the lowest on the market. 
STEP 4:We get to work!At Cannect we work with hundreds of Canadians each and every month in an effort to reduce the interest they are paying on their mortgages. Our primary goal is to make the process of renegotiating your mortgage with your current lender, switching your mortgage to a new lender, or borrowing more money, as simple and easy as possible. We have it down to a science. No paperwork, just a phone call to identify what savings are available to you, and if the numbers make sense, two of our mortgage specialists will be dedicated to your file. We use our huge mortgage origination volumes to make sure you are getting the best mortgage rate on the market, and we use our amazing proprietary mortgage software to help collect and verify all your paperwork. Our service commitment is to do all the things you don't want to do. Want us to deal with your HR department to confirm employment, no problemo! Need someone to call your accountant? That’s us! No need to meet to sign paperwork either. Most of your paperwork can be collected virtually, with your approval. 
By now you understand that all of our services are paid for by the lenders we source mortgages with, and more importantly, our entire philosophy since inception is to provide Canadians with sound, unbiased mortgage advice. That means if doing a deal doesn't make sense for you, you're going to hear about it from one of our salaried employees first!
#Inflation #MakeMoneyCount #InterestRates