Covid-19 And Your Mortgage

We are getting a million questions about how this unprecedented pandemic is affecting real estate, financing and mortgages. We wanted to put together a post that will be updated as we receive new intel on what is going on for those who own properties in Liberty Village and for those who do not yet but wish to own properties in Liberty Village. 

Check back often for the latest news about your current or future mortgage.

*We always encourage you to contact your lender or mortgage broker directly for information specific to your particular mortgage product – take this as general info please*

We have gathered this from local mortgage experts we know and trust. 

Mortgage updates March 31, 2020

We have just had the Bank of Canada drop the over night rate by another 0.50% (and thankfully the banks have followed, and the prime rate of Canada is now 2.45%).

This is truly amazing. 
We have never seen a drop of 1.50% this fast. 
Ever.

However, drastic times call for drastic measures and we are happy to see Canada and the Bank of Canada are moving fast to help Canadians. 

Contrary to what many think, the drop in the prime rate does not mean that rates are coming down.

Fixed rates have actually been going UP!

And going up daily for the last two weeks.

Why rates have been going UP: 
 
  • Mortgage liquidity crisis 
    • banks have less money to lend and the cost of funds are going up
       
  • Oil prices crashing 
    • most Canadian banks are massive investors in Canadian Oil companies
       
  • Stock market crash
    • this affects liquidity
       
  • Mortgage deferral program 
    • huge cost for the banks – imagine having a business where tens of thousands of your clients did not pay the bill for 6 months – this would have a big impact on your cash flow
       
  • Submissions up 400% 
    • lenders have seen an unprecedented amount of mortgage submissions. This is due to the rate increases, and to those looking to refinance as protection against job loss later and uncertainty in the short term and long term
       
Fixed rates are now in the 2.89% range and up

5 year Variable is around prime to prime + 0.20% range 

Lenders are no longer discounting the variable products and this could get worse.
We could see the variable go back to prime + 0.50 to Prime +1, which we saw back in 2009.

A great article about why mortgage rates are rising

 
This info was provided by mortgage broker James Harrison of mortgages.ca.
Mortgage updates March 19, 2020

For those in need of financial help and support… the Government and the Lenders have stepped up – big time. 

Please call your lender directly if you need to take advantage of the 6 month mortgage deferral programs.

Here are the phone numbers of all lenders:

Banks’ Customer Service phone numbers:

• ATB Financial 1-800-332-8383

• B2B Bank 1-866-684-5637

• BMO 1-877-225-5266

• Bridgewater Bank 1-866-243-4301

• CIBC 1-888-264-6843

• Canadiana 1-877-315-1633

• CFF Bank 1-855-767-3031

• Chinook Financial 403-934-3358

• CMLS Financial 1-888-995-2657

• Connect First 403-736-4000

• Equitable Bank 1-888-334-3313

• First National Financial 1-888-488-0794

• First Calgary 1-888-488-0794

• Haventree Bank 1-855-272-0051

• HSBC 1-888-310-4722

• Home Trust 1-855-270-3630

• HomEquity Bank 1-866-522-2447

• ICICI 1-888-424-2422

• Lendwise 1-866-675-7022

• Manulife 1-855-518-7546

• Marathon Mortgage Corp 1-855-503-6060

• MCAP 1-800-265-2624

• Merix 1-877-637-4911

• National Bank 1-800-361-9522

• Optimum Mortgage 1-866-441-3775

• PC Financial 1-888-723-8881

• Scotiabank 1-866-472-6842

• Servus 1-877-378-8728

• RFA 1-877-416-7873

• Radius Financial 1-866-550-8227

• RMG 1-866-809-5800

• Royal Bank of Canada 1-800-769-2511

• TD Canada Trust 1-866-222-3456

• Tangerine 1-888-826-4374

You can also apply for the Government Assistance programs, for all those in need: 

Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses

Mortgage updates March 18, 2020

The Big 6 banks – and other lenders are working at rolling out 6 month mortgage deferral plans for those who have lost their job and/or income.

You will need to call into the lenders 1-800 customer service lines and there will be some sort of vetting process to confirm you qualify … we are waiting on details and I will send out once we have more clarity.

In the meantime you MUST continue to make payments to your current mortgage (even if you have to use a line of credit in the meantime) or take advantage of the “skip a payment” options if your lender has such option.

In the process of buying or refinancing? For any mortgages for purchases and/or refinances – please send in any and all documents so your file is complete and ready to close – and close on time most importantly. 

Many lenders are now up to 3-4 days behind on approvals as they are backed up due to super high submission volumes (especially for those refinancing). People are looking for cash.

Many mortgage brokers and lenders are prioritizing live deals so pre -approvals will be on hold for the most part unless they are super urgent and you are making an offer imminently.

Even though the Bank of Canada dropped their benchmark interest rate to 0.75% the banks haven’t yet followed suit. Mortgage RATES … are actually going UP daily as lenders continue to deal with liquidity issues.

The longer someone “shops” the higher rates could go up. 

More to come….

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About Michael Camber (388 Articles)
Michael Camber is the #1 selling real estate salesperson in King West and Liberty Village. Since 2003 he has been helping his clients achieve all of their real estate objectives.