This week brought about new changes and updates to rates, mortgage and more. It’s a strange world we are living in these days isn’t it? Our new “normal” doesn’t look like what it did just a short 3 weeks ago. We just want to take a moment and remind you that we are here for you—we know that many families are facing hardships and there are a lot of questions being asked about what happens next. Our goal is to always try and help you find a solution, and to work alongside you to help alleviate a portion of the stress you are feeling. We are all in this together!
With that, we’d like to share with you the recent changes that occurred this past week within the Mortgage and Real Estate Industry.
BANK OF CANADA CUTS IT’S INTEREST RATE FOR THE 3RD TIME
The Bank Of Canada has made an additional rate cut of 50 BPS (half a percent). What does that mean for you? Well, it means that lenders will (typically) lower their PRIME rate. If your lender has not done so, do not panic. Banks are often the first to lower their rates. Most banks currently have their prime rate set to 2.45%. Many monoline lenders (RMG/CAP/First National/Street Capital) are slower to respond, but we are seeing some of them lowering their rates to 2.95% effective on April 1, in response to the secondary rate cut that the bank of Canada made. They have not yet given any details regarding the third cut.
So, if you have a VARIABLE rate mortgage, your rate and your monthly payment will most likely be decreasing. On average it will equal about $27 for every $1000,000 of mortgage money that you have for every 50 BPS that the rate lowers. If you have a fixed rate it currently does not impact you.
MORTGAGE DEFERRAL PAYMENTS—AND TRYING TO GET YOUR LENDER ON THE PHONE
Have you been trying to phone your lender to request for mortgage deferral payments and haven’t been able to get through? Our lenders have simply been inundated with phone calls. They are doing the absolute best that they can however the phone lines are full. Many of you have spent hours trying to get through. Many lenders have now set up COVID-19 details on their websites. We strongly suggest you go to your online banking and look at the top for COVID-19 information. Click on that and read your lenders information. Many lenders have options to defer payments online or through email.
ECONOMIC RESPONSE PLAN
This does not tie directly to Mortgages, but we recognize that many families are facing financial hardships. With the government releasing new programs nearly each and every day, it can be hard to keep track of them all! Our friend and partner Brandon Kirk of Primerica but together the chard below to outline the options available as of March 31, 2020. This is not an exhaustive list (as policies are being put in place and altered on a day to day basis) but we hope that it can provide you with some guidance.
HELP FOR TENANTS & LANDLORDS
With it being the start of the month, many tenants have rent due—and many have limited resources available for them to pay it in full this month. The provincial government has stepped in and put in place the following emergency measures for both tenants and landlords here in BC:
- Halted all new and active evictions except for exceptional circumstances
- New Temporary rental supplement of up to $500 per month for 3 months
- Stopped all annual rent increases until further notice
These have been the 3 biggest updates that have taken place this past week. We are sure there are more to come as this pandemic continues and Canadians and their families have new questions and require new information. We are going to continue to do everything in our power to keep you up to date and knowledgeable about what is happening.
GLM Mortgage Group is still operating and we are well equipped to continue servicing our clients at this time. Our team works remotely which means that we can follow public health prevention recommendations while staying 100% dedicated to our customers.
If you have any questions, please reach out and we would be happy to assist.