We are in uncharted territory with the mortgage marketplace continually shifting. Here is a quick summary of some of the most common questions to help you make sense of it all.
Mortgage insurers and lenders announced that eligible clients can delay mortgage payments. These are "compassionate" programs for those who are in serious financial straits and unable to make their mortgage payments. You will need to apply to the program, and assistance will be determined on a case-by-case basis so please do not just start skipping payments. If you urgently need this help, get in touch. We can help you find the right channels to apply.
Yes, your interest rate will also drop. Keep in mind that it usually doesn't happen instantly, and your own rate won't necessarily move in lockstep with the Bank of Canada rate. Ultimately, it's the lender's decision on whether - and how much of - the rate cut will be passed along to the end consumer. Lenders are naturally concerned about liquidity and the potential for an increase in defaults. If you do have a deep discounted variable rate mortgage, you are in a very good position.
If you've got a fixed-rate mortgage, then nothing changes for you right now. The rate you negotiated is guaranteed for the entire term of your mortgage. However, if your fixed rate is a lot higher than the current rates available, then it is still worth calling to see if it makes sense to re-negotiate your mortgage to take advantage of today's rates.
If you're carrying high-interest credit card debt, and you have more than 20% equity in your home, it can make sense to roll those other debts into a new mortgage. You get one manageable payment, better cash flow, and interest savings.
Events that have impacted buyers include:
We all need to take things as calmly as we can, evaluate our priorities, and make decisions that are needed for the long term. Health and happiness to you and yours.