It's (mostly) business as usual with mortgages

Trying to buy a home has changed a little over the last month. Depending on who you are working with, arranging your mortgage financing has changed very little.

Our process is virtually paper free. We made a deliberate decision about five years ago to change our business model to better support our clients’ busy schedules, so we do the bulk of our mortgage applications either online or over the phone. 

About a year and a half ago our regulatory body finally gave us the go-ahead to use electronic signatures for our documents. What this means is that for many mortgage brokers our routines have not changed much, if at all.

What has changed for clients, however, is the fun part of the home-buying journey. Some sellers have pulled their houses off the market as they are not wanting too many people in and out of their homes.

Other sellers are requiring confirmation that potential buyers are serious and have their financing in order before booking appointments.

I have had a few clients who have decided to hold off purchasing until our world settles a bit. For others, they are moving forward as they need a place to live. 

Appraisers are not going into homes, for the protection of both themselves and the homeowners. Lenders are now accepting modified appraisals, meaning that the appraisers are doing their reports based on available information and adding interior photographs (time stamped) provided by the owners of the home.

Another significant change is that legal representatives are able to do virtual signings for the final mortgage documents. Some are still offering in-person signings and have implemented strict protocols to help ensure everyone stays safe and healthy. 

Interest rates have bounced around a bit. My expectation is that they will continue to trend down for the next few months. I do not have a crystal ball, but my thinking is that the government will be wanting to stimulate the housing market over the next two years to help our economy recover.

I noted that one of the chartered banks has posted a very low two-year interest rate, which makes me wonder if rates will start to climb at about that point?

I saw statistics this week that show sales in our market are down compared to this time last year. However, I do know that people are still looking and still buying.

If you are currently looking to buy a home or are already part way through the process, my recommendation is that you touch base with your home-buying team (realtor, mortgage professional, home inspector, and legal representative) to see if any of your timelines have changed.

On our end, we are making sure mortgage instructions are out to our legal partners as quickly as possible to ensure things flow smoothly and that we have extra time to address any potential issues.

One significant change we are seeing is how lenders are looking at refinance applications. I have had several approved over the last few weeks, but did notice more questions about the exact type of work clients do and the likelihood of them continuing to work as we deal with issues relating to COVID-19.

We are also having many conversations with our clients about contingency plans and mortgage deferrals. What we have seen is that most lenders have been overwhelmed with requests. They are working to deal with these requests based on mortgage payment due dates.

If you have requested a payment deferral and have not had confirmation back, it’s a good idea to reach out to your mortgage broker or lender to confirm that your request has been processed. 

We are here to help if you are needing support with mortgage deferral requests. It's business as (mostly) usual on our end. 

Hope you and your loved ones are taking care of each other. Stay safe and well. 

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.