Mortgage During Coronavirus Pandemic: Can I Still Get One?

Can I get a mortgage during coronavirus? The simple answer is yes. But who would have even considered this question several months ago? I know I didn’t. The major lender’s thought process has completely changed the landscape and so although it is possible to get a mortgage during this pandemic, it is not so easy.

What has really changed is the lender’s appetite for risk. The danger level has risen in their eyes and they have slowed down the money taps for clients. The big banks are seeing a recession with a much smaller economy. They (lenders) are also pricing in bank losses and maybe lower home prices. They are protecting themselves or as the saying goes, the ones with the money make the rules. This risk has reflected in the Canadian market with higher fixed rates.

If you require a refinance of your mortgage or are considering purchasing, you better have a job or at least not be affected by the Coronavirus. If you have been temporarily laid off, have reduced hours or your business has closed during this pandemic, your lenders will have NO sympathy.

What if you are still working? Well, as a mortgage consumer you will be scrutinized much harder. The one big factor will be your credit score, banks and mortgage lenders have risen the bar to accommodate only consumers with good scores. As well, your total outside debts must be reasonable. If not, it will appear that you cannot handle or manage your debts. Underwriting for mortgages has certainly gotten harder and if the economy continues to head negatively, it will only get tougher.

The Coronavirus will impact the mortgage market and I suspect for this year it will not be for the better. If we are correct, we believe Canadians will be reducing debt and saving more in the future. For the remainder of the Canadians whose work has affected their lives, please call your financial institution and defer your mortgage payment. This is an excellent gift given by the lenders to preserve cash until this crazy pandemic is over. Take advantage of these delayed payments to preserve your financial and mental stress.

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

If you would like to apply for a mortgage online, please follow this link.

If you would like to see our Google reviews or leave one yourself, you can do so here.