A recent Reuters poll of reputable U.S. economists has a majority of them predicting that the Fed will begin cutting rates in June. Those polled believe the central bank is waiting on additional data outlining the state of inflation and whether it’s fallen to the 2% target. Rate cuts by the Fed would set the tone for the BOC, and the world. In his recent Congress testimony, Fed Chair Jerome Powell hinted at potential policy easing later this year. Despite the speculation of an early rate cut, persistent inflation and a resilient job market may delay the decision. Financial markets now align wi ..read more

In recent days, stocks and the financial world have been abuzz with discussions surrounding recent announcements made by the Federal Reserve, particularly regarding inflation, interest rates, and economic growth projections. As a private mortgage lender serving the GTA and southern Ontario, we’re excited to break down these developments and their potential implications for our clients and the broader real estate landscape. So, let’s delve into the details and unravel what the Fed’s statements mean for Toronto homeowners and potential buyers. Federal Reserve Chair Jay Powell’s March 21st remark ..read more

The Ontario housing market encountered unprecedented challenges in 2023, reminiscent of trends not seen since the 1990s. As we continue through a topsy-turvy year, the real estate scene in Toronto continues to be marked by a nuanced interplay of factors. In this blog post, Tembo will delve into current market dynamics, expert analyses, and projections, providing an all-encompassing guide for potential homebuyers in the Greater Toronto Area. Current Market Scenario: Ontario witnessed a notable dip in home sales in 2023, primarily attributed to the confluence of pandemic-driven highs, high-inter ..read more

We at Tembo want to introduce a brand-new proprietary term for the vast world of real estate: “stigma equity.” Our President and CEO Arryn Greenspan’s extensive experience helping clients led him to coin the term, based on outcomes he was seeing on a regular basis. Stigma equity refers to a situation where a home in a power of sale or default situation is sold off by a bank in a knee-jerk way, as opposed to a homeowner selling on their own terms, and crucially, on their own timeline. The difference in the sale price of a home essentially being purged and liquidated ASAP by a bank and a home be ..read more

The end of 2023 saw the Bank of Canada maintaining its benchmark interest rate in the last three decisions, prompting a significant shift in market discussions from potential rate hikes to the anticipation of rate cuts. Tembo is noting that this broad discourse is present not only in Canada, but across the media spectrum in the U.S. Analysts have been closely monitoring language from the Fed in anticipation that U.S. rates will fall. This is especially timely given the interest costs on U.S. Federal Debt now exceed $1 trillion a year – a huge squeeze on U.S. finances. Even Tiff Macklem, the Ba ..read more

Canadians are spending 8.1% of their disposable income on mortgage payments, whereas U.S. consumers are allocating roughly 4% for theirs. This difference in consumer spending In the realm of Canadian economics, the dynamics of mortgage debt have emerged as a significant factor influencing the country’s economic growth compared to its U.S. counterpart. BMO’s senior economist, Sal Guatieri, draws attention to the pivotal role of mortgage debt in delineating the contrasting growth trajectories between Canada and the U.S. Guatieri highlights a critical distinction in household expenditure patterns ..read more

The Canadian economy is facing some challenges, and recent data from Statistics Canada suggests that we might be entering a technical recession. We’ve been writing about the possibility of this for years – literally. Tembo’s position was always consistent. With interest rates having been so low for so long, the moment the Bank of Canada chose to raise rates would spell the potential for an economic slowdown. Canadians instinctively understand this reality. We benefitted from low rates, and loose monetary policy gave us economic flexibility in tough times (the 2007-8 recession, COVID, etc.) But ..read more

Tembo Financial has long been the trusted name for countless clients throughout Ontario, specializing in second and third private mortgages. Over the years, we’ve been able to provide our a clients with their 2nd and 3rd mortgage funds extremely quickly – often in as little as 48 hours. Tembo’s approach has always been marked by innovative and considerate solutions tailored to our clients’ diverse needs, all delivered with unwavering dedication to exceptional customer service. But now Tembo provides even more solutions to their clients: 1st private mortgages. Our private 1st mortgages are desi ..read more

Tembo Financial has long been the trusted name for countless clients throughout Ontario, specializing in second and third private mortgages. Over the years, we’ve been able to provide our a clients with their 2nd and 3rd mortgage funds extremely quickly – often in as little as 48 hours. Tembo’s approach has always been marked by innovative and considerate solutions tailored to our clients’ diverse needs, all delivered with unwavering dedication to exceptional customer service. But now Tembo provides even more solutions to their clients: 1st private mortgages. Our private 1st mortgages are desi ..read more

If you’re a homebuyer in Ontario, you’re no stranger to the challenges that come with securing a mortgage. The decision to opt for a fixed or variable-rate mortgage is always a pivotal one. As is the reality of getting mortgage approval with a big bank – it’s not as easy as it used to be. Self-employed professionals, and people with lots of different credit products understand this full well. Banks are more conservative than ever, and they are stringent in qualifying people, especially with interest rates at 20-year highs. In this uncertain financial landscape, private mortgage lenders in Onta ..read more