Open for Business During COVID-19

Jen & Cory • April 22, 2020

If you're thinking about buying a new property, refinancing your existing mortgage, or if your mortgage is up for renewal, you might be wondering if getting a mortgage is even possible amid a global pandemic? Be assured that it is possible, mortgages are being written, and we're open for business (virtually). 


Although it may not be business as usual. Mortgage brokers are still brokering, lenders are lending, real estate agents are selling houses, appraisers are appraising (virtually), inspectors are inspecting (some in hazmat suits), while lawyers continue to do what it is that lawyers do. Albeit in a climate of social distancing, with the increased use of technology. 


Here are 3 things to consider while you plan for mortgage financing during the COVID-19 pandemic.


Everything is taking more time | Prepare yourself


As almost everyone involved in getting you a mortgage has had to alter the way they regularly do business, entire workforces are shifting from in-person to online. Despite the uptake in technology, things are taking a little longer than usual. Compounded by the fact that lenders are dealing with high submission volumes from clients wanting to defer mortgage payments, processing new mortgage applications can take longer than in previous months. 


Your best plan of action is to prepare yourself ahead of time. Everyone is under a lot of pressure, so do everything you can to make sure your proverbial ducks are in a row and that you allow enough time to get everything done. Get as much of your personal documentation together upfront and be as organized as possible, it will go a long way in making for a smooth transaction. 


Technology is keeping things running.


While many of the typical steps in the home buying process have been disrupted, with the use of technology, it is possible to buy a home while isolating in COVID-19. 


Mortgage, real estate, and lawyer's documents should all be signed online. Although new technology can be scary, e-signatures allow transactions to take place, while doing your part to keep a social distance. 


Admittedly, not the same as walking through a property, virtual tours allow you to get a sense of feel for a property more so than simple pictures. A lot of listings should have a virtual tour, while many real estate professionals are hosting virtual open houses, where they can take you on a virtual journey through the property using their phone. 


Appraisers aren't required to complete a physical inspection any longer to determine a property's value; instead, everything happens online. An appraiser will use information from MLS data, municipal permits, property assessment information, client or owner information, and any other available source to estimate the physical characteristics of the house interior and the remainder of the property to come up with a valuation. 


If you're looking to refinance or renew an existing property, the same is true, with the use of e-signatures and virtual appraisals, you can get a new mortgage, assuming you qualify. 


You should expect more scrutiny on your mortgage application!


With over half of Canadians claiming to have lost work due to the COVID-19 coronavirus, it's not surprising that lenders are making a move towards extra scrutiny when assessing your overall application and employment documents. Lenders want to ensure your job stability now but also if things get worse down the line, you have good job prospects in the future. 


As far as income goes, in a COVID-19 world, past job performance and income isn't a reliable indicator of future performance and income, everything has changed, and lenders are doing their due diligence. Lenders are becoming more conservative and risk-averse. 


Lenders are starting to ask for income documents upfront. There is no use entertaining your mortgage application if they aren't confident about your prospects of employment. 


Also, for self-employed borrowers, in addition to the standard required documentation of your past business income, you might be required to provide additional documentation going forward. Including, but not limited to: a description of your business activities, number of employees (including how many are actively working or laid off), current business status (operating or shut down), along with bank statements to prove stable income. 


So although it might take a little longer than usual to get a mortgage, and you can most likely expect more scrutiny on your application, with the increased use of technology, mortgage financing is still possible. 



If you'd like to discuss your personal financial situation, and how to go about getting a mortgage in these unprecedented economic times, we might not be able to get together in person for a coffee, but we're open for business virtually and would love to help; please contact us anytime! 


Jen & Cory
YOUR MORTGAGE EXPERTS

CONTACT US
Recent Posts

Bank of Canada Rate Announcement Jun 4th, 2025

By Jen & Cory • June 4, 2025
Bank of Canada holds policy rate at 2¾%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario June 4, 2025 The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%. Since the April Monetary Policy Report, the US administration has continued to increase and decrease various tariffs. China and the United States have stepped back from extremely high tariffs and bilateral trade negotiations have begun with a number of countries. However, the outcomes of these negotiations are highly uncertain, tariff rates are well above their levels at the beginning of 2025, and new trade actions are still being threatened. Uncertainty remains high. While the global economy has shown resilience in recent months, this partly reflects a temporary surge in activity to get ahead of tariffs. In the United States, domestic demand remained relatively strong but higher imports pulled down first-quarter GDP. US inflation has ticked down but remains above 2%, with the price effects of tariffs still to come. In Europe, economic growth has been supported by exports, while defence spending is set to increase. China’s economy has slowed as the effects of past fiscal support fade. More recently, high tariffs have begun to curtail Chinese exports to the US. Since the financial market turmoil in April, risk assets have largely recovered and volatility has diminished, although markets remain sensitive to US policy announcements. Oil prices have fluctuated but remain close to their levels at the time of the April MPR. In Canada, economic growth in the first quarter came in at 2.2%, slightly stronger than the Bank had forecast, while the composition of GDP growth was largely as expected. The pull-forward of exports to the United States and inventory accumulation boosted activity, with final domestic demand roughly flat. Strong spending on machinery and equipment held up growth in business investment by more than expected. Consumption slowed from its very strong fourth-quarter pace, but continued to grow despite a large drop in consumer confidence. Housing activity was down, driven by a sharp contraction in resales. Government spending also declined. The labour market has weakened, particularly in trade-intensive sectors, and unemployment has risen to 6.9%. The economy is expected to be considerably weaker in the second quarter, with the strength in exports and inventories reversing and final domestic demand remaining subdued. CPI inflation eased to 1.7% in April, as the elimination of the federal consumer carbon tax reduced inflation by 0.6 percentage points. Excluding taxes, inflation rose 2.3% in April, slightly stronger than the Bank had expected. The Bank’s preferred measures of core inflation, as well as other measures of underlying inflation, moved up. Recent surveys indicate that households continue to expect that tariffs will raise prices and many businesses say they intend to pass on the costs of higher tariffs. The Bank will be watching all these indicators closely to gauge how inflationary pressures are evolving. With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts. We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs. Governing Council is proceeding carefully, with particular attention to the risks and uncertainties facing the Canadian economy. These include: the extent to which higher US tariffs reduce demand for Canadian exports; how much this spills over into business investment, employment and household spending; how much and how quickly cost increases are passed on to consumer prices; and how inflation expectations evolve. We are focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. We will support economic growth while ensuring inflation remains well controlled. Information note The next scheduled date for announcing the overnight rate target is July 30, 2025. The Bank will publish its next MPR at the same time.

Simplifying The Mortgage Process

By Jen & Cory • May 28, 2025
Chances are, buying a home is one of the most important financial decisions you’ll make in your life. And as mortgage financing can be somewhat confusing at the best of times, to alleviate some of the stress and to ensure your home purchase goes as smoothly as possible, here are six very high-level steps you should follow. While it might seem like the best place to start the home buying process is to browse MLS on your phone and then contact a Realtor to go out and look at properties, it’s not. First, you’re going to want to work with a licensed independent mortgage professional. When you work with an independent mortgage professional, instead of working with a single bank, you’ll be working with someone who has your best interest in mind and can present you with mortgage options from several financial institutions. The second step in the home buying process is to put together a mortgage plan. Unless you have enough money in the bank to buy a home with cash, you’re going to need a mortgage. And as mortgage financing can be challenging and not so straightforward, the best time to start planning for a mortgage is right now. Don’t make another move until you discuss your financial situation with an independent mortgage professional. It’s never too early to start planning. As part of your mortgage plan, you’ll want to figure out what you can afford on paper, assess your credit score, run some financial scenarios, calculate mortgage payments, and have a clear picture of exactly how much money is required for a downpayment and closing costs. You’ll also be able to discuss which mortgage product is best for you, considering different mortgage terms, types, amortizations, and features. Now, what you qualify to borrow on paper doesn’t necessarily mean you can actually afford the payments in real life. You need to consider your lifestyle and what you spend your money on. Understanding your cash flow is the key. Make a budget to verify you can actually afford your proposed mortgage payments and that you have enough funds to close on the mortgage. No one wants to be house-poor or left scrambling to come up with funds to close at the last minute. If everything looks good at this point, the next step will be to get a preapproval in place. Now, a pre-approval is more than just typing some numbers into a form or online calculator; you need to complete a mortgage application and submit all the documents requested by your mortgage professional. Only proceed with looking at properties when you’ve been given the green light from your mortgage professional. When you’ve found a property to purchase, you’ll work very closely with your mortgage professional to arrange mortgage financing in a short period of time. This is where being prepared pays off. As you’ve already collected and submitted many documents upfront during the preapproval process, you should be set up for success. However, remain flexible and provide any additional documentation required by the lender to secure mortgage financing. Once you have firm lender approval and you’ve removed conditions on the purchase agreement, don’t change anything about your financial situation until you have the keys. Don’t quit your job, don’t take out a new loan, or don’t make a large withdrawal from your bank account. Put your life into a holding pattern until you take possession of your new home. So there you have it, six steps to ensuring a smooth home purchase: Work with an independent mortgage professional. Put together a mortgage plan. Figure out what you can actually afford. Get a pre-approval. Provide the necessary documentation. Don’t change anything about your financial situation until you take possession. If you’d like to discuss your personal financial situation and find the best mortgage product for you, let’s work together. We can figure out a plan to buy a home as stress-free as possible. Please connect anytime; it would be a pleasure to work with you.
More Posts