As the Coronavirus (COVID-19) continues to evolve and we all adjust to the new realities of life see information below with regards to your mortgage.
The majority of lenders are offering payment deferral for up to 6 months. Interest will continue to accrue on your mortgage and will be added to the principal. If you require specific information on how to reach your lender please feel free to contact me.
Despite the Bank of Canada lowering the prime rate, banks and mortgage lenders have been raising rates since last week due to liquidity concerns and heightened credit risk. If you are currently approved or pre-approved these increases will not affect you.
The spring market at this point seems to be active. If you are purchasing please be aware of changes that could affect you during the process. Be sure your down payment funds/closing costs are accessible as banks are starting to close branches. Property Inspections and Appraisals may be more difficult to obtain due to the virus. We will work with that to the best of our ability. Please confirm your lawyer/notary is available for signing as this for now has to be done in person. Rest assured we are all doing what we can within our control to assist you.
If your mortgage is coming up for renewal this year you may want to obtain a rate hold/pre-approval as a guarantee for the best rate going forward. A rate hold is good for 120 days (4 months). If your current lender offers you a better rate by all means stay with them but the option to move for a better rate is always a good one to have.
If you are considering the option of an Equity Take Out or Refinance to pay down debt or free up cash you should start the procedure now, guarantee the rate and give yourself the 120 days for consideration.