- Hey, it's Nolan Matthias from Mortgage360
coming at you with another coronavirus mortgage update,
this time for Wednesday, March 18th.
We've got some new information.
We've obviously got a lot of updates
and things to share here.
For the latest info, hit that subscribe button,
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and we'll make sure that we post information as we get it
on what's going on in the world economy,
and specifically the world of mortgages.
So let's get into it.
I'm gonna read most of this off my phone.
I've got my notes here.
These videos are gonna be unedited and raw,
but important if you're a mortgage holder.
So let's talk first about volumes.
We got a email early this morning
from one of the big non-bank lenders
stating that their volumes are three times higher
than they would expect them to be at this time of the year.
Now, keep in mind, it's the beginning
of what would normally be a spring real estate market,
and they're three times the volume.
So what's going on there?
Well, most of those clients are people
who are trying to get a lower rate and trying to refinance,
maybe lower payments, extend amortizations,
and basically get set up to weather the storm.
If you've got an interest rate
of let's call it over 2.89%, definitely over 3%,
you should probably be looking at lower rate options.
The simplest way to do that
is to talk to a mortgage broker like ourselves.
We'll put the apply link in the description below.
Obviously we're taking those
on a first-come, first-served basis.
Now, that being said,
two days ago, I could get a variable-rate mortgage
for prime minus one.
A day ago I could get it for prime minus .75.
Today I'm having trouble finding mortgages that are
more than, or that are priced better than prime.
Keep that in mind.
Rates are going up.
Banks are,
there's a lot of demand,
so the price is going up on those mortgages.
We just got word from one of the,
from the biggest non-bank lender in Canada.
They're increasing their fixed rates again
from 2.54
to 2.64,
effective at midnight.
So those opportunities to get super low rates
and refinancing at lower rates
are slowly starting to disappear.
My guess is that by the end of the week
they may not be available at all.
So if you are thinking about doing it,
the time to act is now.
Actually the time to act was two days ago,
but you've still got some time
if that is something you wanna take a look at.
Now, obviously, the Canadian Bankers Association
and the big banks came out today
with an announcement that they were going to allow
up to six months payment deferral
and assistance to small business owners.
Here's the thing.
Here's what that means.
Let's actually, let's talk about what it doesn't mean.
What it doesn't mean is that
everyone's gonna get six months of payment deferral.
If you can weather the storm
the bank's not gonna let you defer your payments.
What they are going to do is on a case-by-case basis
look at people in need,
and those in need will be able to make a case
and get somewhere between zero and six months
of payment deferral.
It's not gonna be a given,
and it's going to be only for those in need.
Now here's my fear.
The banks came out, big press releases.
Canadian Bankers Association, big press release,
makes it sound like everyone's going to get this,
and the problem with that is
what they're probably facing right now
is a whole bunch of phone calls
from a whole bunch of people
who can probably weather the storm,
asking for those six months deferral.
What that's doing is it's clogging up the system
for the people who actually need
the help and the assistance.
So please, if you can weather the storm
and you don't need that six month deferral,
don't make those phone calls.
When should you making the phone call to ask for deferral?
Well, it's definitely before you miss your first payment,
so if you're gonna miss a payment, call your bank.
But until such time as that's a real possibility,
leave the banks alone unless you're doing something
to lower your rate or get a new mortgage, okay?
A whole bunch of other things came out
from the federal government today,
some of it mortgage-related, some of it not.
They're obviously doing a lot of things
to support the economy right now.
I'm gonna read some of them to you.
There's been a temporary boost
to the Canada child benefit payments,
which anybody with kids
is gonna get an increase if they qualify.
A new emergency care benefit of up to $900 biweekly
for up to 15 weeks, to provide income support for workers,
including, and this is huge, including the self-employed
who have to stay at home and don't qualify
for paid sick leave or employment insurance.
So this is big for somebody like me who's self-employed,
for anybody who's self-employed
who doesn't necessarily pay into employment insurance.
Well, the government is going, okay,
this is an abnormal scenario,
and we're going to do everything we can to help everyone
and not leave anybody out to dry.
If you're self-employed, there is going to be
the potential to get these sorts of benefits.
I'm not sure how yet.
We'll do some more research and try to find out,
but it's on its way.
New emergency support benefit
to provide $5 billion to workers
who are not eligible for EI.
That's us.
Here's a big one.
Six months interest-free for student loan repayments,
which I think is so, so, so important.
Having the ability to take somebody who has student loans
and give them a interest-free period is huge,
'cause these are usually young people
who are maybe not as financially secure
and probably gonna have the hardest time
weathering the storm, so I think that's an amazing thing.
Doubling the homeless care program.
Extending the tax filing deadline to June 1st.
You're going to be able to put off
filing your taxes for a month, basically.
Then on top of that, they're going to allow you
to defer payments until August 31st,
which I think is huge, especially for small business owners
and self-employed, having that little bit of extra time
in order to make payments, I think is amazing.
Government's on this.
They see that Canada, the world's in need,
and they're doing things to help us financially,
which is huge.
As far as clients in the mortgage process,
we've also talked to appraisers.
Most of them are sending out health questionnaires
prior to viewing people's properties.
In a lot of cases
they're switching from doing on-site appraisals
to doing what we call drive-by appraisals
or desktop appraisals,
where they don't actually have to be in physical contact
with the property or in social contact with the owners.
FNF, FCT, the title insurance companies
are doing the same thing, health questionnaire,
and if the client appears to be sick
in any way, shape or form,
they are basically able to find alternative measures
to get documents signed.
We've talked to lawyers, as well.
They're doing the same sort of thing.
Everybody is working to make sure
the financial system is staying in check
and making sure that it operates properly.
I applaud our lenders.
I applaud everyone else.
By the way, the big six banks
announced six-month deferral program.
Expect that if you've got a insured mortgage
with a monoline lender, you're gonna get the same courtesy,
and quite frankly if you don't have insured mortgage
with a monoline or an online bank lender,
I'm gonna expect that most lenders
are gonna give you the exact same courtesy.
Primarily people don't want to be
in the business of doing foreclosures right now,
especially in a time like this,
so the key thing is to make sure
that if you are going to run into difficulty
making your payments, call your lender first,
before you miss that first payment,
and have a frank conversation and work with them
to make sure that your mortgage is continued
to be in good standing,
whether you take deferred payments or not,
and that you can continue on with them for the long term.
Best thing you can do in times like this
is communicate and communicate well.
Speak the truth, tell the truth.
Don't think that you have to have conversations
with lenders or brokers or lawyers or whoever
where you hide things.
Just put all the cards on the table,
and the people who are in the position to help you
will do everything that they can to help you
99.999% of the time.
So again, we're gonna do these updates on a regular basis.
Hit the subscribe button, hit the notification bell
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and you get the updated information as fast as possible.
We will see you in the next video.
Cheers.