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