TransUnion conducted a survey on the financial status of 1,035 Canadians in the midst of the COVID-19 pandemic. The final results showed some unsettling figures:
- 68% of people are worried about being able to pay their loans and bills.
- The average survey respondent will fall behind on their monthly debts in just 6.4 weeks.
- 63% of Canadians have faced negative financial repercussions as a result of COVID-19.
- 25% of those Canadians lost their jobs and 10% were small business owners who had to make changes to comply with restrictions.
One thing can be concluded from the findings: Canadians are looking for temporary financial solutions.
Refinancing your home is an option that many consider when interest rates are low or when extra money is needed. However, current property values are very unpredictable right now and appraisers are now more cautious when providing a value.
With banks restructuring their lending guidelines due to employment instability, refinancing is tougher for some Canadians. Lenders will probably want to see all income documents upfront. If you are not working, you may be asked for further proof that your employer plans to continue paying you. If you are self-employed, be prepared to provide a description of your business, the current status of it, and proof that it will withstand the obstacles presented by COVID-19.
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