Refinancing Your Home During COVID
Tags: refinancing, financing, refinancing your home, Newmarket real estate, real estate news, real estate advice, covid, coronavirus real estate,
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.
At Knowledge Broker, our goal is to create an open-source of information for all our clients. We want to ensure that, at the end of the day, they get exactly what they want and what they need. If you know someone who could use our help or services please put them in touch with us or send us their details using the contact information below. And before you go, click here to take the Knowledge Broker Quiz and see exactly what we can do for you!
JOSHUA CAMPBELL (@knowledgebrkr)
Real Estate Broker
Coldwell Banker The Real Estate Centre, Brokerage
249 Avenue Road • Newmarket, ON L3Y 1N8