Canada’s mortgage rates are creeping up -- even though the country’s central bank has slashed borrowing costs to combat the COVID-19 pandemic.
“That’s due to the enormous pressure Canadian banks face amid disruptions caused by the outbreak, said Sherry Cooper, chief economist at Dominion Lending Centres.
The costs of funds for banks is skyrocketing and bank earnings are plunging, Cooper told Bloomberg Monday.“
“Every single business they have ever loaned to is subject to a massive decline in revenues, and therefore their own revenues are going down because nobody is taking out new business with banks except to extend debt.”
If you want to understand more about mortgage rates, how they work & the current volatility of those rates check out this video from Dustan Woodhouse - AMP Accredited Mortgage Professional:
Now for the GOOD NEWS & We’ll take any bit of positive news we can get right now!
There is some optimism as far as future job security is concerned as although there has been an increase in jobless claims, Canadian consumers are largely confident in their job security.
Just 13% of respondents to the Canadian Confidence Index said they were worried about losing their job, slightly up on the previous week, but below record highs.
❓So what does this mean to you? If you are thinking about buying a home in the near future you should be taking the time now to get your mortgage pre-approval and get your rate locked in now for 120 days!
Then when the time is right you are ready to go!
If you have questions or need a a referral to a lender or mortgage broker, feel free to contact us!
~ Karin & Jen
"Your Proven Regina Real Estate Team"
Posted on March 30, 2020 by W2 Realty Team
Posted in Covid-19, How To, Mortgage, Regina Real Estate, Regina Realtors, Regina Saskatchewan, YQR, YQR Real Estate
While we know the most important thing we are dealing with right now is an unprecedented health crisis, we also know that it is a super stressful time for many people from a financial standpoint.
We are happy to hear that both our Provincial & Federal governments have announced many measures to help everyone through this time, and those financial aid programs continue to be expanded as the need grows.
So what can we do right now to be proactive?
✅Check out all of the programs being offered to homeowners(including mortgage payment deferral), families & businesses to see what you can benefit from:
Canada’s COVID-19 Economic Response Plan:
There are a number programs available through your lender to defer mortgage payments & we recommend you contact your lender or your mortage broker to discuss your options.
Check out this informative Blog on the subject from our colleague, Candice Carr, mortage expert form TMG, including contact info for all of the major lenders.
Also, here are some great tips on how we can take control from BNN Bloomberg’s Pattie Lovett-Reid:
"On a personal level:
Check out the entire article here:
We work with great mortgage brokers and we recommend you talk to a specialist to find out what options will work best for you right now, for both existing mortgages and also if you are considering a buying a home at this time.
Of course if you have questions about what's happpening with the Real Estate market in Regina, feel free to reach out to us....we're happy to help!
We will all get thought this together with a plan!
~ Karin & Jen