Anyone who completed the purchase of a home, renewed their mortgage or simply remortgaged for whatever reason likely received a very good rate, historically, and the process was relatively smooth.
The Effects of a Global Pandemic
Mid March when the Coronavirus (COVID-19) and a global pandemic announced, our world, including the mortgage industry, was turned upside down. We were asked to stay at home, stay 6 feet apart and wash our hands more than we ever had. Businesses and offices were shut down. Some of us were able to continue working from home while others were laid off with no idea when they could return.
Our federal and provincial governments stepped in quickly and announced stimulus packages to help people and businesses survive. Financial institutions were deemed “essential” and would continue to offer services. Many closed branches or reduced the hours they were open. Call Centres saw a 500% increase in calls as people questioned how they would make their payments while not working.
Renewing Your Mortgage
If your mortgage is coming up for renewal during this unprecedented time you don’t have to worry that you won’t be able to renew. At renewal you do not requalify with your current lender if you have made your payments as agreed during the term. The process is usually as simple as signing the Renewal Agreement sent by your lender.
Pro Tip: Renew for the shortest fixed rate term offered or a variable rate mortgage.
This will give you maximum flexibility and options down the road when there may be some very good rate options.
If, at renewal, you decide to change lenders you will need to requalify. All documentation will be required.’
Contact Your Mortgage Lender
Contacting your mortgage lender may be more difficult during these uncertain times due to call volumes. We have heard many stories of people waiting, “On Hold”, for several hours only to be told the agent couldn’t answer their question. This is frustrating for everyone.
The Ingram Mortgage Team is available to listen to your situation and answer your questions. We cannot make a decision on behalf of your lender but our experience will help you with a plan for your mortgage going forward.
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