COVID-19 UPDATES AND WHAT HOMEOWNERS NEED TO KNOW
March 25, 2020 | Posted by: Tania Campfield
Many changes are happening daily as we all try to navigate through these uncertain times.
Rumours of lenders allowing and not allowing mortgage deferrals, who does it and who doesn't is leaving people confused. I recognize many homeowners are looking for guidance so please click here to Mortgage Centre's webpage that provides answers to many of the questions you may have.
This last week also saw daily fixed rate mortgage increases as well as banks slashing any discounts on variable rate mortgages. Although you've heard Bank of Canada dropping their key lending rate, fixed have NOT! One of the biggest reasons for this is concern of the bank's liquidity. Bond markets are usually connected to rates and still are but at this time it's a combination of things.
The Minster of Finance announced the launching of a $50 billion Insured Mortgage Purchase Program. What this means is previously uninsured mortgages will be allowed to be pooled into the National Housing Act Mortgage-Backed Securities for CMHC to purchase. This will help lenders with more liquidity and therefore allow financial institutions to continue lending, while also assisting customers with hardship. This move helps customers in need of the deferrals as the bank will be better supported financially.
I know many of you out there are stressed both financially along with trying to keep yourselves and families safe and healthy. The finances are something I may be able to help you with so please please reach out to me sooner than later as there may be some financing options that we can work out for you. With increasing rates you may want to contact me as well if you have a mortgage renewal within the next few months.
Again, I'm always here for any questions you have.