Shelley Stewart AMP, Verico One Link Mortgage & Financial
100-99 Scurfield Blvd. R3Y 1Y1 Winnipeg, MB, Canada

In response to COVID-19, the Bank of Canada cut it’s overnight rate by an additional .50 % on Friday. There was an initial rate cut of .50% for a total of a 1% rate cut since March 4th. Lenders have yet to respond as to what savings will be passed onto home owners with variable rate mortgages and secured lines of credit.

To help ease financial stress due to the COVID-19 outbreak, Canadian mortgage insurers are taking significant pro-active steps for homeowners who (primarily, but not exclusively) purchased with less than 20% down payment to defer mortgage payments for up to 6 months. There does not appear to be information on the insurers websites (CMHC, Genworth, Canada Guaranty) as of yet. If your family is impacted by COVID-19 and you want to understand your options to defer mortgage payments, contact your mortgage professional.

Great news! The Bank of Canada dropped the prime rate to 3.45% yesterday. Today, lenders are starting to weigh in and pass on the full 0.50% rate reduction to borrowers. What a great time to buy a home or restructure your current mortgage to capitalize on the savings!

A rate cut is expected tomorrow by the Bank of Canada. It may be the 1st of 3 reductions we could see this year bringing variable rates down to the lows enjoyed in 2017.

Could it become easier to qualify for a mortgage in 2020? Stay tuned...