How Are Current Canada Mortgage Trends Going? on February 17, 2021 Canada mortgage trends can differ from year to year depending on the financial climate and many other things. One factor that had a huge impact on the mortgage industry is the COVID-19 pandemic. In addition to having an effect on mortgage rates, it also created a lot of salary cuts and job loss in many employees around the country and the entire world. If you’re looking at the Canadian mortgage market or just the recent Canada mortgage news lately, you might be wondering if these trends will alter your ability to purchase your dream home. Mortgage Assist contains a team of dedicated mortgage brokers that have years of experience in dealing with people of all types of different financial backgrounds. While you might think you don’t have a high enough income or good enough credit report to secure a mortgage, Mortgage Assist can set you up on a mortgage assist program that will guide you on the path to achieving your homeownership goals and dreams. Before 2020, not many people would have ever thought that business throughout the world would be conducted on such a digital level. If you’re the pen-and-paper type of person that likes to look at real estate through newspapers and magazines instead of looking online, then there is a good chance that the ones that chose the digital method have already gotten to the sale before you. 2020 has had an impact on how the entire mortgage industry operates. Within a few minutes of searching online, you can be filling out a mortgage application. This is much different than having to physically drive into your local mortgage broker and doing things the old-fashioned way. How 2020 Raised The Stakes For The Mortgage Industry One company called Quicken started advertising a one-click process to get a mortgage going on an advertisement a couple of years back. After that ad, many other mortgage lenders started following behind that same methodology and some technology companies began growing on that even further. Mortgage lenders started accusing Quicken of using marketing ploys and gimmicks, and this started to create some confusion within the mortgage industry. The entire premise of this technology was to create a more streamlined mortgage application process that was supposed to lower the confusion surrounding it. The challenges of technologizing the mortgage industry are apparent because it’s such a regulated industry, and the government needed to cooperate throughout the entire process. For newer mortgage companies or for companies that already have a good grasp on the digital world, the digital point of sale is something that works well and increases business. For those that aren’t aware of it, there comes a variety of different struggles. Many mortgage lenders don’t typically require an onslaught of technology to complete the verifications on mortgage applications. Before 2020, there really wasn’t a massive need to digitize the mortgage process, and previously it was mostly used to increase the number of borrowers that lenders did business with. How The Spread Of Coronavirus Is Changing The Mortgage Process Once the COVID-19 pandemic rolled around and caused all of the rules to stay home and social distance, the industry was forced to change. Face-to-face meetings and filling out mortgage applications with a pen and paper didn’t make sense anymore when rules enforced that from happening. Online meetings became the new norm instead of just being used as a convenience before the pandemic began. Many older folks have done everything they could to avoid the virtual and digital way of doing things. With virtual open house meetings, virtual underwriting, processing, and closing all needing to be done remotely, people didn’t have a choice but to adjust. Due to the mortgage lending process all being done digitally, potential homeowners have required much more support and communication to streamline the process and create a smoother workflow. If the mortgage industry didn’t move to a digital workflow in 2020, it would have ended up in shambles. Without it, no mortgage applications could have been filled out because it would have gone against government regulations in terms of social distancing. Online applications rapidly increased the amount of business that mortgage lenders were involved with. The evolution of coronavirus in Canada has forced many businesses to adopt a digital workflow. While the financial crisis of 2008 might have been a spark towards the mortgage industry going digital, 2020 was the year that fully ignited it. The digital approach to the mortgage industry hasn’t been all sunshine and rainbows. One person in the industry stated that underwriting a mortgage has become very difficult due to the number of things that need to be done in person. The house requires an appraisal, notarization needs to be done, and a bunch of document signing is necessary to seal the deal. Mortgage lenders are basically taking the digital approach on a day-to-day basis and learning as they go. Some borrowers have noted that getting mortgage approval has actually been tougher in spite of the digital workflow. This isn’t entirely because things have shifted towards digital. Lenders are just unsure of the risks that the pandemic will cause. With so many people losing jobs or having pay cuts, lenders are hesitant to give out loans. Lenders have been double-checking on people borrowing money and making sure they are still employed when the time gets closer for them to sign off on all of the documents. Subprime mortgage rates have attracted many borrowers in purchasing new homes, and speaking with your mortgage lender is the best way to get started because of all of the different changes that have resulted from the pandemic. Mortgage lenders suggest those looking to apply for a mortgage to get their financial health up to par before even filling out the mortgage application. Keeping a good credit score is another thing that’s highly recommended. What Can A Buyer Do To Get The Best Mortgage Rate? An interest rate that’s posted online can be different than the actual one you receive from the mortgage lender. Because there are so many factors that go into the interest rate you’ll be getting, it’s impossible to use a generic interest rate that’ll apply to every person that sees it. Some things that determine the interest rate you’ll get are: Your current credit score. The amount of money you’re wanting to borrow in comparison to the worth of the home. The loan term you’re wanting to go with. To get a better understanding, sometimes your mortgage lender will go through a few different options with you. If you have any confusion along the way, ask them many questions. Constant communication has and always will be a part of the mortgage application process. Even though the pandemic, communication will still exist remotely. Making such a large purchase is a stressful decision for many people, and it’s the mortgage lender’s job to make the process as easy and straightforward as possible. For people that are familiar with digital work environments and communication, it might even be much more convenient for you.