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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4 Signs You’re Ready for Homeownership

By Joel Olson • October 21, 2025
Buying your first home is a big deal. And while you may feel like you’re ready to take that step, here are 4 things that will prove it out. 1. You have at least 5% available for a downpayment. To buy your first home, you need to come up with at least 5% for a downpayment. From there, you’ll be expected to have roughly 1.5% of the purchase price set aside for closing costs. If you’ve saved your downpayment by accumulating your own funds, it means you have a positive cash flow which is a good thing. However, if you don’t quite have enough saved up on your own, but you have a family member who is willing to give you a gift to assist you, that works too. 2. You have established credit. Building a credit score takes some time. Before any lender considers you for mortgage financing, they want to see that you have an established history of repaying the money you’ve already borrowed. Typically two trade lines, for a period of two years, with a minimum amount of $2000, should work! Now, if you’ve had some credit issues in the past, it doesn’t mean you aren’t ready to be a homeowner. However, it might mean a little more planning is required! A co-signor can be considered here as well. 3. You have the income to make your mortgage payments. And then some. If you’re going to borrow money to buy a house, the lender wants to make sure that you have the ability to pay it back. Plus interest. The ideal situation is to have a permanent full-time position where you’re past probation. Now, if you rely on any inconsistent forms of income, having a two-year history is required. A good rule of thumb is to keep the costs of homeownership to under a third of your gross income, leaving you with two-thirds of your income to pay for your life. 4. You’ve discussed mortgage financing with a professional. Buying your first home can be quite a process. With all the information available online, it’s hard to know where to start. While you might feel ready, there are lots of steps to take; way more than can be outlined in a simple article like this one. So if you think you’re ready to buy your first home, the best place to start is with a preapproval! Let's discuss your financial situation, talk through your downpayment options, look at your credit score, assess your income and liabilities, and ultimately see what kind of mortgage you can qualify for to become a homeowner! Please connect anytime; it would be a pleasure to work with you!
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Mortgages Aren’t One-Size-Fits-All

By Joel Olson • October 7, 2025
Why the Cheapest Mortgage Isn’t Always the Smartest Move Some things are fine to buy on the cheap. Generic cereal? Sure. Basic airline seat? No problem. A car with roll-down windows? If it gets you where you're going, great. But when it comes to choosing a mortgage? That’s not the time to cut corners. A “no-frills” mortgage might sound appealing with its rock-bottom interest rate, but what’s stripped away to get you that rate can end up costing you far more in the long run. These mortgages often come with severe limitations—restrictions that could hit your wallet hard if life throws you a curveball. Let’s break it down. A typical no-frills mortgage might offer a slightly lower interest rate—maybe 0.10% to 0.20% less. That could save you a few hundred dollars over a few years. But that small upfront saving comes at the cost of flexibility: Breaking your mortgage early? Expect a massive penalty. Want to make extra payments? Often not allowed—or severely restricted. Need to move and take your mortgage with you? Not likely. Thinking about refinancing? Good luck doing that without a financial hit. Most people don’t plan on breaking their mortgage early—but roughly two-thirds of Canadians do, often due to job changes, separations, relocations, or expanding families. That’s why flexibility matters. So why do lenders even offer no-frills mortgages? Because they know the stats. And they know many borrowers chase the lowest rate without asking what’s behind it. Some banks count on that. Their job is to maximize profits. Ours? To help you make an informed, strategic choice. As independent mortgage professionals, we work for you—not a single lender. That means we can compare multiple products from various financial institutions to find the one that actually suits your goals and protects your long-term financial health. Bottom line: Don’t let a shiny low rate distract you from what really matters. A mortgage should fit your life—not the other way around. Have questions? Want to look at your options? I’d be happy to help. Let’s chat.