AGENT LICENSE ID
SB 140187
Robert Mogensen
Mortgage Consultant, AMP
Office:
Phone:
Email:
Address:
560 - 171 West Esplanade, North Vancouver, British Columbia
BROWSE
PARTNERS
It PAYS to shop around.
Many Canadian homeowners pay too much for their homes because they are not getting the best mortgage financing available in the market.
The mortgage process can be intimidating for homeowners, and some financial institutions don't make the process any easier.
But I’m here to help!
As your personal mortgage consultant, I’m an independent, unbiased, expert, here to help you move into a home that you will love.
I have access to mortgage products from a multitude of lenders at my fingertips and I work with you to determine the best product that will fit your immediate financial needs and future goals.
VERICO mortgage specialists are Canada’s Trusted Experts who will be with you through the life of your mortgage.
I save you money by sourcing the best products at the best rates – not only on your first mortgage but through every subsequent renewal. So whether you're buying a home, renewing your mortgage, refinancing, renovating, investing, or consolidating your debts — I’m your personal mortgage consultant who will help you get the right financing, from the right lender, at the right rate.
Please call me today for your best mortgage solution and advice. Phone: 604.802.8193
BLOG / NEWS Updates
Rates, Refinancing and Relief - The Effects of COVID19 - UPDATED March 24th
More Rate Increases
HSBC often leads the market on mortgage pricing and today it upped multiple rates:
3yr fixed (high ratio): 1.88% to 1.99% Still the lowest rate in Canada
5yr fixed (switch/purchase): 2.49% to 2.69%
5yr fixed (refis): 2.59% to 2.79%
5yr variable (switch/purchase): 2.49% to 2.74%
5yr variable (refis): 2.59% to 2.84% (P 0.11%)
Evaporating variable-rate discounts are sadly a sign of the times, even at rate leader HSBC.
Extraordinary Delays:
Extreme application volumes are leaving some applicants waiting over two weeks for mortgage approvals. Generally speaking, the better the mortgage deal, the more applications the lender gets and the longer borrowers must wait.
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Rates and Refinacing
This week has been yet another roller coaster of news, that none of us have fully been able to digest let alone fully understand. The COVID19 crisis has rocked the markets and that flight of capital has caused rates to fall. This caused a flurry of inquiries for most brokers regarding refinances to catch those suddenly lower rates. Unfortunately for the borrower who did not react quickly, just as quickly as rates fell, they popped back up again, in some cases above the levels they were at prior to their drop. This has caused much confusion in conversations with our clients. Didnt the Bank of Canada lower the rate twice? well, yes, they did. However, as the banks have watched the COVID19 situation unfold, they have become nervous of liquidity and risk issues. This has driven them to inflate their margins to potentially allow for losses such as defaults.
The net effect is that if you are looking at a purchase or refinance today, you will likely find both fixed and net variable rates at roughly the same levels as they were back in January or February. The big question is, when will these rate increases end. If the 2008 market drop was any indication, we will likely see either rates staying the course or potentially bumping upwards slightly, again depending on the investors perception of risk in government bonds.
Bottom line is the rates are, and have been at historically low levels for a long time now. With the historical rate for a 5 year, fixed rate mortgage around 6%, the current available rates around 3% are a bargain. My advice in such uncertain times would be to take a fixed rate and know what your costs will be for the next 5 years. The discount on variables has evaporated so at this point, the variable option unlikely would give the savings you may have seen in the past and should the BOC raise rates over the course of the typical 5 year term, you may actually be paying a premium. Food for thought.
Relief
Id like to leave you with some information many of us have been wondering about, Payment Relief.
Most banks and mortgage companies have now announced, that during what looks like an uncertain period ahead, should you need a break from your monthly mortgage payments, they are willing to assist. The gist of the offer is that with many lenders, you may miss up to six months of payments to offset a loss of income should you be laid off. The mechanics of this is that the lender will allow you to miss those payments and instead, add the interest portion that you would have otherwise paid into the principle amount of your mortgage. This is not free money. The interest portion will be capitalized into the amount you owe so after the six months of missed payments, you will begin to pay it back with a portion of your normal payment, basically extending the amortization of your mortgage by a little over six months from where it sits today. Dont get me wrong, this is a great deal for a borrower if you really need it. If not, it adds to your interest costs and should be avoided. In other words, dont do it just because you can.
If you need to discuss possible payment relief with your mortgage lender, below is a partial list of major Canadian lenders for your convenience. If youd like to discuss potential refinances, equity take-out or other mortgage related issues, I am always available to assist you as well.
Feel free to reach out directly by phone or text to: 604.802.8193 or email me at robert@robertmogensen.com
Stay safe and stay well.
Robert Mogensen Mortgage Consultant
ATB 1-800-332-8383
B2B 1 800 263 8349
BMO 1-877-895-3278
Bridgewater 1-866-243-4301
CIBC 1-800-465-2422
CMLS 1-888-995-2657
Optimum 1-866-441-3775
Equitable 1-888-334-3313
Connect First 403-736-4000
Chinook Financial 403-934-3358
First Calgary Financial 403-736-4000
First National 1-888-488-0794
Haventree 1-855-272-0051
Home Trust 1-855-270-3630
HSBC 1-888-310-4722
ICICI 1-888-424-2422
Manulife 1-877-765-2265
MCAP 1-800-265-2624
Merix 1-877-637-4911
Marathon 1-855-503-6060
RBC 1-866-809-5800
RFA 1-877-416-7873
RMG 1-866-809-5800
Scotia 1-800-472-6842
Servus 1-877-378-8728
Street Capital 1-866-683-8090
TD 1-866-222-3456
Canadian Federal Fall Economic Statement 2020
Canadas Federal Finance Minister provided a first multi-year peek at the impact of the pandemic on the Canadian economy and its finances in her Fall Economic Statement 2020. The deficit is set to soar to $381 bn (17.5% of GDP) in FY21an increase of about $40 bn since July estimates. At the same time, the government acknowledges it could be as high as $400 bn under alternative scenarios of extended and/or escalating COVID-19 cases.
The blow to government revenues contributes to a quarter of the shortfall, while COVID-19 spending will add another $275 bn of deficit financing this year. The bulk of increases in pandemic spending had already been announcedbut not costedprior to the update, whereas new announcements reflect about $25 bn. This includes a $17 bn top-up to the wage subsidy program to bring its coverage back up to 75% for the remainder of the fiscal year.
Debt as a share of the economy is expected to swell to 50% this year, peaking close to 53% in 2021 and declining thereafter. But this is only a baseline that does not incorporate a new stimulus package of up to $100 bn promised over the next three years that would see debt soar to around 58% of GDP by 2024 under various scenarios.
The new stimulus package will be designed in the coming months with an intent to jumpstart the recovery. Its withdrawal would not be time-based, rather contingent on closing the output gap, loosely defined in terms of employment metrics. These so-called guardrails will guide fiscal policy until the economy has recovered and the government will then return to a prudent and responsible fiscal path.
Markets are likely to temporarily adjust to the implied bump in expected federal borrowing requirements (although an abundance of scenarios leaves this open to a wide range of interpretations), but this will be digested in an environment where global drivers are largely shaping bond market dynamics.
Almost one-quarter of Canadian seniors are caregivers
While older Canadians may be more likely than their younger counterparts to require help and care in their daily lives, almost one-quarter of Canadian seniors aged 65 years and older are caregivers themselves. And while the roles and responsibilities of these senior caregivers may have changed in the context of the COVID-19 pandemic, the challenges they face could be heightened.
Although the pandemic has affected the lives of all Canadians, seniors have been identified as a population particularly vulnerable to COVID-19. Not only are seniors more at risk of severe illness, they are also more affected by isolation measures. As a result, many senior caregivers who help people living outside of their household may not have been able to provide the same level of care that they usually do. Senior caregivers providing help to their spouse may also have seen their burden of care increase, given the possible lack of other support during the pandemic. For example, older caregivers who are usually supported by their adult children to provide help and care for their spouses, may have had to perform additional activities and provide more hours of care than usual. While the data in the current study were collected prior to the COVID-19 pandemic, the results highlight the many challenges senior caregivers already faced.
A new study, The experiences and needs of older caregivers in Canada, uses data from the 2018 General Social Survey on Caregiving and Care Receiving to provide a profile of senior caregivers in Canada. Senior caregivers are those who have provided help or care to a spouse, another family member, or a friend with a long-term health condition, a physical or mental disability, or problems related to aging.
Senior caregivers are likely to continue to play an important role in the years to come. As the needs for care and help increase with an aging population, smaller families and geographic mobility among Canadians may reduce the supply of potential younger family caregivers. Within this context, many older Canadians may be relied upon to become care providers, even though they may develop health issues of their own, including age-related physical and cognitive declines, chronic illness and some level of disability.
