Mortgage Blog

Getting you the mortgage you deserve


March 18, 2020 | Posted by: Ask Ana Cruz

We have all be slammed with emails, social media and more informaiton that we can handle on the COVID-19 UPDATES and so my goal is to break it down for you. 

We do have a video available with more information, so if you want to receive that, please email us at

There is a lot to share, so hang on tight.


As you may have read this morning Canada’s big six banks will allow mortgage payment deferrals for up to six months. This is in part due to extraordinary measures to help customers struggling with the financial impacts. I’m sure that in the coming week, we will hear from all other lenders. 


Lenders and the govt are working together to implant policies to assist and provide solutions to homeowners 

Already we have some lenders allowing for SKIP-A-PAYMENT and HOLD-A-PAYMENT, please message us if you want more details on this.

We see that others lenders will follow suite in the near future. 

Most lenders have their underwriters are now working from home, and most lenders have closed their offices.

Business is still operating. I have to say I'm impressed on how smoothly everyone has moved to working virtually from home. I can apprecaite how much it work it took to move all their employees to home offices, setting up secure networks to work from home, but it is business as usual for all lenders as far as we know. 


Once your file is complete with us and the lender, the next step is to meet with your lawyer to sign. In light of COVID-19 lawyers are taking to virtual meetings. Closings are proceeding as expected…there should be no changes. We will update you on your particilar file if you are closign with us as we move along.


I get a lot of calls and emails on this, so let me try to explain what’s been happening. 


As you may know the fixed rates are normally tied to the bond market, over the last few weeks wee have seen the bond market drop over 30% and thus the fixed rates dropped as well. We were at. The point where a 5 year fixed rate was 2.39% for a high ratio insured mortgage. We are now at 2.49% for the same mortgage, since the bond market has increased over the last week. Wee say rate increases on Friday of last week and again on Monday this week. 


For the first time in over 10 years the bank of Canada announced another .50% drop in the overnight rate.  As of April 1st, we should see that the banks will follow suit and drop the prime rate to 2.95% 

Historically the lowest we have ever had the prime rate at is 2.70% so we can see that the BOC is doing all that they can to help control the market volatility. 


Rates move up and down, some with the Bank of Canada announcement and others with the bond market. At the end of the day, they are both responding to external pressured. 

What we need to keep in mind… Banks are worried about liquidity and stabilizing the market. Historically Canadian banks are renowned for being stable. World wide we are  often looked at for reference on how to keep the economy going and so we have to trust that all the necessary changes are bring made to help up move through the COVID-19 pandemic.


I’ve had a lot of calls about refinancing your home at this time. I will be making calls and touching base with everyone (that’s the plan anyhow) 

However if you are in a fixed rate of over 3.39% we should talk about refinancing to a lower rate and protecting your rate for a longer time.  


As I write this the govt announced they will spend up to $82 billion, including $27 billion in direct support for Canadian workers and businesses. This will be distributed in a combination of direct support for works and business and tax deferrals.


Income taxes have been pushed to a June 1, 2020 deadline, this will give everyone more time to get their taxes filed in 2020 


Mortgage Broker, Ana Cruz and her team have two offices to better serve you 651 Fennell Ave East, Hamilton  and 5063 North Service Road, Suite 200, Burlington

Ana can be reached at 905.870.0513 or you can email her at

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