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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Home Reno Dreams? Let’s Talk Mortgage Financing

By Joel Olson • February 17, 2026
How to Use Your Mortgage to Finance Home Renovations Home renovations can be exciting—but they can also be expensive. Whether you're upgrading your kitchen, finishing the basement, or tackling a much-needed repair, the cost of materials and labour adds up quickly. If you don’t have all the cash on hand, don’t worry. There are smart ways to use mortgage financing to fund your renovation plans without derailing your financial stability. Here are three mortgage-related strategies that can help: 1. Refinancing Your Mortgage If you're already a homeowner, one of the most straightforward ways to access funds for renovations is through a mortgage refinance. This involves breaking your current mortgage and replacing it with a new one that includes the amount you need for your renovations. Key benefits: You can access up to 80% of your home’s appraised value , assuming you qualify. It may be possible to lower your interest rate or reduce your monthly payments. Timing tip: If your mortgage is up for renewal soon, refinancing at that time can help you avoid prepayment penalties. Even mid-term refinancing could make financial sense, depending on your existing rate and your renovation goals. 2. Home Equity Line of Credit (HELOC) If you have significant equity in your home, a Home Equity Line of Credit (HELOC) can offer flexible funding for renovations. A HELOC is a revolving credit line secured against your home, typically at a lower interest rate than unsecured borrowing. Why consider a HELOC? You only pay interest on the amount you use. You can access funds as needed, which is ideal for staged or ongoing renovations. You maintain the terms of your existing mortgage if you don’t want to refinance. Unlike a traditional loan, a HELOC allows you to borrow, repay, and borrow again—similar to how a credit card works, but with much lower rates. 3. Purchase Plus Improvements Mortgage If you're in the market for a new home and find a property that needs some work, a "Purchase Plus Improvements" mortgage could be a great option. This allows you to include renovation costs in your initial mortgage. How it works: The renovation funds are advanced based on a quote and are held in trust until the work is complete. The renovations must add value to the property and meet lender requirements. This type of mortgage lets you start with a home that might be more affordable upfront and customize it to your taste—all while building equity from day one. Final Thoughts Your home is likely your biggest investment, and upgrading it wisely can enhance both your comfort and its value. Mortgage financing can be a powerful tool to fund renovations without tapping into high-interest debt. The right solution depends on your unique financial situation, goals, and timing. Let’s chat about your options, run the numbers, and create a plan that works for you. 📞 Ready to renovate? Connect anytime to get started!

First-Time Buyer? Here’s How to Tell If You’re Ready

By Joel Olson • February 3, 2026
Ready to Buy Your First Home? Here’s How to Know for Sure Buying your first home is exciting—but it’s also a major financial decision. So how can you tell if you’re truly ready to take that leap into homeownership? Whether you’re confident or still unsure, these four signs are solid indicators that you’re on the right path: 1. You’ve Got Your Down Payment and Closing Costs in Place To purchase a home in Canada, you’ll need at least 5% of the purchase price as a down payment. In addition, plan for around 1.5% to 2% of the home’s value to cover closing costs like legal fees, insurance, and adjustments. If you’ve managed to save this on your own, that’s a great sign of financial discipline. If you're receiving help from a family member through a gifted down payment , that works too—as long as the paperwork is in order. Either way, having these funds ready shows you’re prepared for the upfront costs of homeownership. 2. Your Credit Profile Tells a Good Story Lenders want to know how you manage debt. Before they approve you for a mortgage, they’ll review your credit history. What they typically like to see: At least two active credit accounts (trade lines) , like a credit card or loan Each with a minimum limit of $2,000 Open and active for at least 2 years Even if your credit isn’t perfect, don’t panic. There may still be options, such as using a co-signer or working on a credit improvement plan with a mortgage expert. 3. Your Income Can Support Homeownership—Comfortably A steady income is essential, but not all income is treated equally. If you’re full-time and past probation , you’re in a strong position. If you’re self-employed, on contract, or rely on variable income like tips or commissions, you’ll generally need a two-year history to qualify. A general rule: housing costs (mortgage, taxes, utilities) should stay under 35% of your gross monthly income . That leaves plenty of room for other living expenses, savings, and—yes—some fun too. 4. You’ve Talked to a Mortgage Professional Let’s be real—there’s a lot of info out there about buying a home. Google searches and TikToks can only take you so far. If you're serious about buying, speaking with a mortgage professional is the most effective next step. Why? Because you'll: Get pre-approved (and know what price range you're working with) Understand your loan options and the qualification process Build a game plan that suits your timeline and financial goals The Bottom Line: Being “ready” to buy a home isn’t just about how much you want it—it’s about being financially prepared, credit-ready, and backed by expert advice. If you’re thinking about homeownership, let’s chat. I’d love to help you understand your options, crunch the numbers, and build a plan that gets you confidently across the finish line—keys in hand.