Keep Calm and Carry On in the 2020 Housing Market

General Melanie Ward 15 Jun

Stay Away From Fear Based Market Decisions Until Real Data Has Come In.

It’s hard not to panic in these trying times. With the news constantly throwing out alarm bells about a depression, and the economy on pause, it would be easy to give in to the desire to dump your investments, sell your properties, and hole up until things turn around.

But the data out there is still coming in. This is a time to hold the line on your home. If you own your house right now, and can afford to keep it, this is a time to ignore the news, and stay on track, especially for the coming months.

No one has a crystal ball, and we are bombarded with speculation, but for now in Canada things are relatively stable.

Whether you are thinking of selling or not, the best place to get information is from a local realtor.

Local realtors will know the actual details of whether the real estate market in your area is healthy. The best idea? Talk to a few of them, get a broad range of opinions that are specific for the area that your home or property is located in, and then make decisions from there. You can also speak to your mortgage broker about whether there are better rates available for you to keep your home.

Not everyone is doing badly in this market, and downturns represent opportunities for some

Will there be a real estate market correction? Maybe, only time will tell. In the meantime there are buyers out there who may be waiting for just the right moment to buy. There will always be buyers out there; even during the Great Depression, there were people ready with money for opportunities. Eventually there will be pent up demand for these buyers, and they will be ready, with enough information on hand, to purchase. This might be you, or you might be the person on the other end ready to sell.

The best thing you can do to make sure you are making the best decision is to stay calm, get as much LOCAL information as possible from experts and informed people like realtors, financial advisors etc…and then make a decision from there. Many banks are offering rate breaks, or interest only payments on mortgages. A mortgage professional may have ideas to help you buy – or hold onto your house at this time.

Remember: humans are very good at adapting, and in the long term whatever downturn we are facing will eventually turn around.

Is it harder to get a mortgage now – since COVID 19?

The short answer is YES.

To obtain a mortgage, underwriters review everything to do with the client’s financial picture; credit, income, down payment, net worth, debts and they also look closely at the property to ensure the collateral is suitable to lend on.

In today’s crazy world the main question mark for lenders is income. Are you still working? At what capacity? Has COVID affected your work or business and if so, what are the changes your employer or business is making to adjust?

Like everyone in the world we have all experienced change and the changes are ongoing. Is getting a mortgage harder? Yes BUT the mortgage market is still active and there is still lots of money out there to lend!

As a Mortgage Broker, I have access to many lenders and we can move your file around if needed to do our best to satisfy your needs. More now than ever, you need to use a Mortgage Broker! Please do not hesitate to contact me with any questions. I am here to assist and my services are free.