How’s the current economic outlook? Indeed, pretty bleak. For instance, interest rates are rising, inflation is still sky-high, and asset prices have taken a nose-dive. We may be approaching the peak of economic uncertainty, however, maybe that’s just the optimism from the beginning of the summer! Have a listen to the episode to get a more in-depth view from the Mortgage Broker Team at Cannect Home Financing.A few key takeaways:

First, the rapid rise in interest rates is changing the way qualified Canadians borrow money. We discussed in the previous episode how and why there could be a takeoff. In the home equity loan market with interest rates rising. Therefore, we look at how this will impact private lenders. Even with the potential for a drop in real estate prices, this could prove to be a tailwind for the risk level of private home equity loans. Cannect prides itself in helping home owners with ample home equity repair their homes and get to lower cost capital.

But if more loans are given to borrowers that have no covenant to repair, then the overall risk profile of these loans will drop. The real estate market may look uncertain, but this could be a very strong silver lining. Second, Cannect isn’t a small company, it’s just “folksy” You’ll have to listen to get a better breakdown, but the essence of this statement is that Cannect is not a large institution like a bank. We are a company of regular people that are just like our borrowers.

We’ve grown slowly, we take pride in being direct-to-borrower and direct-to-investor. We love being able to regularly communicate with our borrowers and investors like we are doing right now. The fact that we are this way is just one of the reasons why we feel very confident going into difficult economic times. Marcus Tzaferis and the Cannect Team