Getting a Mortgage During COVID-19

Joel Olson • April 16, 2020

Houses are still selling and people are still looking to buy. Others are looking to improve their interest rate, and finally, there are many people looking to access current equity in their by refinancing.

 

Here are some answers to some common questions that we are seeing.

 

1. I heard rates are really low and that they will go even lower.

 Rates went down in the time period that we call “Pre-local” COVID-19. That means when we were still leaving our house, but everyone knew it existed and it was wreaking havoc on China’s economy. China being 20% of the world economy means that this had an effect on interest rates driving them down really low for a few days. Once COVID-19 become local, which means we had local restrictions, you couldn’t leave home and places were shut down, interest rates went back up. This is because the banks all of sudden had less money to lend. Best way to understand this is that over a period of a short amount of days, people dumped their money out of the stock market and went and stuffed their money under a mattress. There is a bit more to it than that, but that’s more on less what happened. Now, the government is giving money to banks through various methods which means that this will at some point lower fixed rates down.

 

2. I see that the Bank of Canada has lowered rates three times. How does this affect my mortgage?

 The Bank of Canada lowering rates does not directly create any difference to your mortgage. The overnight rate is a rate at which banks borrow money from each other. This affects lots of things but does affect the prime rate that lenders can offer a client. Thus, if you have a variable rate when banks lower the prime rate you variable rate goes down. It is not automatic that the overnight rate changes the prime rate though.

 

Currently, most banks passed on the savings to clients, so if you had a variable pre-march, the last thing you should do is lock-in.

 

If you haven’t seen your payment or interest rate go lower, don’t worry that letter is coming from your lender.

 

3. Should I defer my mortgage? Isn’t it free money?

 Deferring your mortgage is not free money. You take whatever your payments are and they are added to your principal. This means that whatever money you add to your mortgage you are now paying interest on the extra. Does that mean its a bad idea? If you are out of work and can’t make your mortgage payments, it is still a much better option then the alternatives that exist.

 

4. Can I still get approved for a mortgage if I’m not working?

 It really depends on your situation, if it is likely that you will go back to work as soon as restrictions are lifted. It’s quite possible. Additionally, if you are self-employed, we are still looking at your situation from what you made historically.

 

5. Should I get pre-approved, if I want to buy much later in the year?

 Yes, you should because we can get you ready and make sure there are no issues that might come up later.

 

As always, everyone’s situation is highly personal, so feel free to reach out so we can go through your specific options.

 

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Joel Olson
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Your Guide to Real Estate Investment in Canada

By Joel Olson • April 28, 2026
Your Guide to Real Estate Investment in Canada Real estate has long been one of the most popular ways Canadians build wealth. Whether you’re purchasing your first rental property or expanding an existing portfolio, understanding how real estate investment works in Canada—and how it’s financed—is key to making smart decisions. This guide walks through the fundamentals you need to know before getting started. Why Canadians Invest in Real Estate Real estate offers several potential benefits as an investment: Long-term appreciation of property value Rental income that can support cash flow Leverage , allowing you to invest using borrowed funds Tangible asset with intrinsic value Portfolio diversification beyond stocks and bonds When structured properly, real estate can support both income and long-term net worth growth. Types of Real Estate Investments Investors typically focus on one or more of the following: Long-term residential rentals Short-term or vacation rentals (subject to local regulations) Multi-unit residential properties Pre-construction or assignment purchases Value-add properties that require renovations Each type comes with different financing rules, risks, and return profiles. Down Payment Requirements for Investment Properties In Canada, investment properties generally require higher down payments than owner-occupied homes. Typical minimums include: 20% down payment for most rental properties Higher down payments may be required depending on: Number of units Property type Borrower profile Lender guidelines Down payment source, income stability, and credit history all play a role in approval. How Rental Income Is Used to Qualify Lenders don’t always count 100% of rental income. Depending on the lender and mortgage product, they may: Use a rental income offset , or Include a percentage of rental income toward qualification Understanding how income is treated can significantly impact borrowing power. Financing Options for Investors Investment financing can include: Conventional mortgages Insured or insurable options (in limited scenarios) Alternative or broker-only lenders Refinancing equity from existing properties Purchase plus improvements for value-add projects Access to multiple lenders is often crucial for investors as portfolios grow. Key Costs Investors Should Plan For Beyond the purchase price, investors should budget for: Property taxes Insurance Maintenance and repairs Vacancy periods Property management fees (if applicable) Legal and closing costs A realistic cash-flow analysis is essential before buying. Risk Considerations Like any investment, real estate carries risk. Key factors to consider include: Interest rate changes Market fluctuations Tenant turnover Regulatory changes Liquidity (real estate is not easily sold quickly) A strong financing structure can help manage many of these risks. The Role of a Mortgage Professional Investment mortgages are rarely “one-size-fits-all.” Lender policies vary widely, especially as you acquire more properties. Working with an independent mortgage professional allows you to: Compare multiple lender strategies Structure financing for long-term growth Preserve flexibility as your portfolio evolves Avoid costly mistakes early on Final Thoughts Real estate investment in Canada can be a powerful wealth-building tool when approached with a clear strategy and proper financing. Whether you’re exploring your first rental property or planning your next acquisition, understanding the numbers—and the lending landscape—matters. If you’d like to discuss investment property financing, run the numbers, or explore your options, feel free to connect. A well-planned mortgage strategy can make all the difference in long-term success.

Divorce and Your Mortgage: What You Need to Know

By Joel Olson • April 14, 2026
Going Through a Separation? Here’s What You Need to Know About Your Mortgage Separation or divorce can be one of life’s most stressful transitions—and when real estate is involved, the financial side of things can get complicated fast. If you and your partner own a home together, figuring out what happens next with your mortgage is a critical step in moving forward. Here’s what you need to know: You’re Still Responsible for Mortgage Payments Even if your relationship changes, your obligation to your mortgage lender doesn’t. If your name is on the mortgage, you’re fully responsible for making sure payments continue. Missed payments can lead to penalties, damage your credit, or even put your home at risk of foreclosure. If you relied on your partner to handle payments during the relationship, now is the time to take a proactive role. Contact your lender directly to confirm everything is on track. Breaking or Changing Your Mortgage Comes With Costs Dividing your finances might mean refinancing, removing someone from the title, or selling the home. All of these options come with potential legal fees, appraisal costs, and mortgage penalties—especially if you’re mid-term with a fixed-rate mortgage. Before making any decisions, speak with your lender to get a clear picture of the potential costs. This info can be helpful when finalizing your separation agreement. Legal Status Affects Financing If you're applying for a new mortgage after a separation, lenders will want to see official documentation—like a signed separation agreement or divorce decree. These documents help the lender assess any ongoing financial obligations like child or spousal support, which may impact your ability to qualify. No paperwork yet? Expect delays and added scrutiny in the mortgage process until everything is finalized. Qualifying on One Income Can Be Tougher Many couples qualify for mortgages based on combined income. After a separation, your borrowing power may decrease if you're now applying solo. This can affect your ability to buy a new home or stay in the one you currently own. A mortgage professional can help you reassess your financial picture and identify options that make sense for your situation—whether that means buying on your own, co-signing with a family member, or exploring government programs. Buying Out Your Partner? You May Have Extra Flexibility In cases where one person wants to stay in the home, lenders may offer special flexibility. Unlike traditional refinancing, which typically caps borrowing at 80% of the home’s value, a “spousal buyout” may allow you to access up to 95%—making it easier to compensate your former partner and retain the home. This option is especially useful for families looking to minimize disruption for children or maintain community ties. You Don’t Have to Figure It Out Alone Separation is never simple—but with the right support, you can move forward with clarity and confidence. Whether you’re keeping the home, selling, or starting fresh, working with a mortgage professional can help you understand your options and create a strategy that aligns with your new goals. Let’s talk through your situation and explore the best path forward. I’m here to help.