First off, on behalf of our entire team, we hope everyone is safe and healthy during a confusing time with the impact COVID-19 is having on the entire world.
In relation to the impact on Canadian's Mortgages, we are now obtaining historical low interest rates for both fixed and variable rates. In conjunction with the Federal Government changing the Stress Test Rate for Insured Mortgages starting April 6, 2020, we anticipate a jump in demand for real estate.
Clients are inquiring about how to handle their current mortgage, be it; pre-approval, purchase, refinance and renewal.
Pre-Approval & Purchase
-Complete a mortgage application and consent form ASAP.
-Get your interest rate locked to take advantage of the reduced pricing.
-Get your pre approval fully underwritten to put yourself in the best position with your realtor for purchasing in a competitive market re: shortened or no financing condition.
-Get an experienced Mortgage Broker to manage the process for you.
*In a volatile market, choice and options and the maneuverability of a good Mortgage Broker is key to help in both a low baring interest market with continual change and limited supply and lots of demand.
Refinance
-Obtain your current mortgage statement
-understand if there are any clauses that preclude you from paying it out or get your Mortgage Broker to review
-Find out your penalty, if there is one, to break your mortgage early
-Get documents in order: Collect your income documentation, property tax statement, mortgage statement
-Connect with an experienced Mortgage Broker to provide you with application and consent and shop the market and report back with options on how a new Mortgage impacts your interest rate, savings, cash flow, amortization etc.
Renewal
-Dont sign the renewal paper you get in the mail
-Obtain the renewal terms ASAP
-Organize your documentation, same as listed above, income, mortgage statement, property taxes, income
-Conenct with experienced Mortgage Broker to navigate lenders choice and options.
Now more than ever choice and options and experience are important. Rates are moving daily, lenders are changing terms continually. You require support to navigate these changes happening quicker than ever in the past and has the infrastructure to support multiple clients at once.
Our Mortgage Broker has access to Big Banks, Mono Line Lenders consumers may not have access to as not available via traditional bricks and mortar locations, Trust Companies and Credit Unions.
A Great Mortgage Broker will have access to the best rates and terms and help navigate these continual changes, along with how to handle competition in multiple offers, manage pre approvals and find the best terms.