Happy April everyone; we hope you are all staying safe and healthy. While it has been a roller coaster of a year, there are still many things to look forward to and reasons to stay positive. It is to no one’s surprise that the last few weeks have been something that none of us have ever seen before. Many have been trying to compare current events to the 1929 depression or the 1990-1991 recession, but experts are saying this is a completely different situation as, with COVID-19, there is an end in sight.
In this month’s blog, we are going to highlight the most recent Mortgage updates, the current situation with Buyers and Sellers, positive aspects of Coronavirus, and what the government is doing to help.
We have been receiving a lot of questions about what is happening with mortgages and what actions to take with COVID-19. Here is what we know that will help answer the questions you may have.
Deferring My Mortgage
It may seem a bit strange, but surprisingly there have not been too many deferrals reported within the region, but banks/lenders have agreed on deferrals for up to six months for those impacted from layoffs and closures. Uninsured mortgages are being offered flexible payment options by many lenders as well as relief for other credit products. Those with an insured (high ratio) mortgage are receiving options of deferral, loan re-amortization (loan recasting), payment arrangements, and being able to capitalize on outstanding interest arrears/eligible expenses.
Refinancing Into a Lower Rate
Mortgage rates have been a bit of a roller coaster. When COVID-19 first impacted, rates went down, now they have climbed back up where refinancing may not be the best option unless your lender is willing to go to your original rate. Many experts are recommending locking in a fixed rate through this time as there is no telling if rates will go up or down in the foreseeable future.
Getting Qualified to Purchase
This is great news and should be a telling sign that there are still people looking to Buy. Since the BC Government named real estate as an essential service, those who have been saving for years prior to 2020 are still taking action and not letting anything deprive them of their dream home. With the current situation, it has opened up investment opportunities. If you have been affected by COVID-19 and need help figuring out your options or have questions, contact Julie Isaac with The Mortgage Group, and she will be able to help you.
Still Many Positives to Buying or Selling NOW
Understandably, Buyers’ confidence was a bit rattled when Coronavirus took its toll. And while some have put their real estate needs on a temporary pause, others have taken advantage of the extra time to make a fully informed purchase decision. The March 2020 Market Report revealed an increase in homes selling for below asking, which means there is more sense-of-urgency for Sellers to get a deal done, as for some who have lost employment or been laid off, sold earnings are their only stream of income. So, if you are looking to Buy, you are going to get a deal, and if you are Selling, you will get lots of interest.
While these are unprecedented times, there are lots of positives and better times to look forward to. If you are in need of assistance, the Government of Canada has launched new benefits to help (click below).
One thing we know for sure is that when you look for positives, you will find them. A fish is a fantastic swimmer but terrible at flying. We cannot control what is happening right now, but we can react accordingly. Practice social distancing, washing hands regularly, and isolating at home if feeling sick.
To everyone who took the time to read this month’s letter, we wish you the best of health and success in the future.
If you are looking to Buy or Sell, contact us and we will arrange a virtual tour!
Kim: (604) 720-3659 | Sean: (604) 880-9400 | WhittallRealEstate@gmail.com