COVID-19 Update
In these uncertain times…
Stay Calm…
April 22, 2020
Worldwide – 2,594,794 positive cases; 179,778 deaths; 698,066 recovered.
Canada – 38,923 positive case; 1,871 deaths, 13,594 recovered.
Ontario – 12,245 positive cases; 659 deaths; 6,221 recovered.
Kingston – 59 positive cases; 0 deaths; 54 recovered.
Government has announced a program for postsecondary students today and upcoming announcements for seniors.
Students who made < $5000.00 will be able to apply for assistance as of May 1, 2020. $1,250.00 per month. Also additional student jobs for the summer (extra 76,000 Canada summer jobs). Also opportunities for getting paid for volunteer work.
This morning, we have an update on the Canada Emergency Wage Subsidy (“CEWS”).
The application window will open on Monday, April 27 at 6:00 am. You can apply using your CRA My Business Account or, alternatively, you can apply using a separate online application form that will be available. You will need to obtain an online Web access code if you use the application form. The CEWS will be processed at the payroll program (RP) account level, so you will have to file a separate application for each RP account. There is no need to rush, however. Applications will not be processed on a first-come, first-served basis. Instead, all applications received from April 27 to May 3 will be batch-processed at the same time on May 4.
The CRA has built in certain automated verification controls to guard against fraud and abuse. Businesses that have had their application approved during the May 4 automatic verification process can expect to receive payment via direct deposit on May 6 or May 7. The CRA estimates that some 10% of businesses that apply for the CEWS will not make it through the automated verification process but will require manual verification. If you require manual verification, then your direct deposit will be delayed.
Before applying, you should have already calculated the estimated subsidy. The federal government has created an online calculator to help businesses determine what the CEWS will cover and to simplify the application process. CRA officials said yesterday that businesses that go through the process of using the calculator will be able to print out the resulting information and use the printout to help expedite the online application process. The calculator is on the CRA’s CEWS information page, at the section entitled “Calculate Your Subsidy Amount”.
The CRA’s CEWS information page also provides additional information for applicants about which employers are eligible and how they should count eligible employees.
The CRA has re-assigned 3,000 auditors to handle manual verification and 2,000 call centre employees to handle CEWS inquiries from businesses.
CRA officials reiterated that the objective of the CEWS program is to have businesses recall workers they may have already laid off and avoid additional lay offs. At the same time, the CRA is warning employees who get hired back that they will be asked to re-pay any CERB funds they have received if the period for which they receive a CERB support overlaps with the period for which they are receiving a CEWS-subsidized paycheque from their employer.
Remember that any wage subsidies paid to a business will be treated as business revenue for tax purposes
April 17, 2020
Canada 30,659 positive cases; 1,251 deaths; 10,091 recovered.
Ontario 9,525 positive cases; 478 deaths; 4,556 recovered.
Kingston *** No new cases in 2 days!**** 55 positive cases; 50 recovered.
April 15, 2020
Canada 28,188 positive cases; 1006 deaths; 8,603 recovered.
Ontario 8,447 positive cases; 385 deaths; 3,902 recovered.
Kingston 55 positive cases; 0 deaths; 50 recovered.
New flexibility surrounding CERB applicants.
April 7, 2020
Canada 17,813 positive cases; 374 deaths; 3,931 recovered.
Ontario 4,726 positive cases; 153 deaths; 1,802 recovered.
Kingston 54 positive cases; 0 deaths
500,000 new N95 masks permitted via US border.
April 6, 2020
Canada 16,457 positive cases; 320 deaths; 2,845 recovered.
Ontario 4,038 positive cases; 119 deaths; 1,449 resolved.
Kingston 53 positive cases; (5 additional over the weekend).
Big news is that shipment from 3M was stopped at the US border on Trump’s orders – optimistic that we will get 500,000 of the 3,000,000 ordered N95 masks from 3M.
U.S. cases confirmed over 336,000 with deaths over 10,000.
Italy, Spain & France all reported declines in their daily death tolls, roughly three weeks after the date of their respective lockdowns.
April 3, 2020
Global – 1,013,157 positive cases.
Canada – 11,747 positive cases; 152 deaths; 1,936 recovered.
Ontario – 3,255 positive cases; 81 deaths.
Kingston – 47 positive cases.
Local hospitals have freed up 400-500 beds should the need arise.
Trump has requested that N95 masks made by 3M in the U.S. no longer be shipped to Canada nor Latin America.
Any mortgages where Paradigm Quest administers the servicing (i.e. Merix, Lendwise,etc) have a new email address to make the request for deferred mortgage payments:
CAP@paradigmquest.com – Please see note from lender:
We require the customer name, mortgage number, property address, and how they have been financially impacted by COVID-19 (for example, illness, income disruption, self-isolation). Our normal response times are within 24 hours, however during this time, email and voicemail response is 3-5 days in most circumstances.
April 1, 2020
Kingston – As of Tuesday March 31, 2020 43 positive cases.
KFL&A confirms COVID-19 outbreak at local long term facility however will not reveal which facility.
Ontario – positive cases now 2392; resolved 689; deceased 37.
CERB (Canada Emergency Response Benefit) is largest economic program offered in Canadian history.
Trudeau not willing to commit to a time frame for pandemic stating that it will depend entirely on how Canadians behave at this time.
As of April 6, 2020, individuals will be able to go to Canada Revenue Agency online to apply for CERB.
Deferred payment information:
First National Financial LP advises clients to go to their account on client portal if they are registered, in order to make the request, or else to click on the following link:
First National Deferred Payment Request
March 31, 2020
Kingston – no new positive cases.
Ontario – positive cases now 1966;resolved 534; deceased 33.
March 30, 2020
Kingston – positive cases doubled over the weekend and now at 35.
Ontario – positive cases now 1706; resolved 431; deceased 23.
Prime Minister Justin Trudeau said Monday the 75-per-cent wage subsidy announced late last week will be available to large and small companies as well as charities and non-profit organizations to keep employees on the payroll and weather the COVID-19 pandemic.
The government announced Friday that it was boosting the wage subsidies to business from 10 per cent to 75 per cent with details of the Canada Emergency Wage Subsidy to come on Monday.
“If your businesses revenues have decreased by at least 30 per cent because of COVID-19, you will be eligible for this subsidy. The number of employees you have will not determine whether you get this support,” Mr. Trudeau told his daily news conference. “It will apply to non-profit organizations and charities as well as companies both big and small.”
March 27, 2020
In view of the fact that updates are coming in daily, we think it is best to include up to date information according to timelines…
News as of March 26, 2020
Kingston & Area declares State of Emergency
Kingston – 2 new COVID-19 cases; Total 16 cases
Spread of disease happening via community contact and no longer exclusively via travel abroad.
Ontario – 170 new COVI-19 cases; Total 835 cases
New Assessment Center in Napanee
Emergency Alert sent out to all travellers returning home : “You are required by law to self-isolate for 14 days”
B2B Bank: offers deferred payments for initial period of up to three months – if you have online banking B2B encourages you to email them via: https://onlinebanking.b2bbank.com/RetailB2B/servletcontroller?lang=en
First National Financial LP: currently approving three-month deferrals on insured and conventional residential mortgages upon request. Borrowers must confirm in writing or verbally that they have had a disruption to income or employment as a result of COVID-19.
PLEASE NOTE THAT THE CONTACT LIST FOR LENDERS PRESENTED HEREIN WAS UPDATED MARCH 26, 2020.
https://www.youtube.com/watch?v=ObWrdYQ_6xY
In these uncertain times….
Ok, so the answer is not to panic.
But what should we do?
Status of COVID-19…
11 cases in Kingston
572 cases in Ontario:
8 resolved, 8 dead
2751 cases in Canada:
112 resolved, 27 dead
Status of COVID-19 in Kingston
Memorial Center is now a COVID-19 Assessment Centre
Returning from travels?
You must self-isolate for 14 days
How to self monitor….
Government assistance announcement March 25, 2020
$2,000 a month for four months to individuals who lost their work as a result of the COVID-19 pandemic.
Application launch forthcoming
Families to be able to obtain funds within 10 days of application
Self Isolation:
So if you are self-isolating, how do you pay for your mortgage?
What are lenders / insurers doing about this situation?
Lenders & insurers have declared assistance to all Canadians
Up to 6 months of deferred mortgage payments could be available
Deferred mortgage payments are discretionary.
Lenders maintain the legal right to timely repayment of their mortgages and mortgage payment deferral
Programs are offered at their sole discretion and each lender has different policies on how they handle these requests
No lender is going to forgive your mortgage payment.
A deferred payment program allows you to roll a defined number of mortgage payments into your mortgage, however you are still expected to ultimately pay all of the money you owe, with interest. (referred to as “capitalization”)
What lenders are we talking about?
Note: These programs are generally restricted to “Institutional” lenders only.
Banks and mono-line lenders
Private mortgages do not typically qualify (although we are making the requests and some are being considered).
True financial hardship must be demonstrated.
These programs are for customers who are genuinely struggling to make their next mortgage payment. They may have lost their job(s) and/or a portion of their income, and they do not have the cash reserves necessary to draw on.
*** If you are not in this group, you are not likely to be eligible.***
Must be prepared to submit a detailed breakdown of your personal assets, current income and expenses.
Deferring mortgage payments will not hurt your credit score.
A lender-approved deferment is not a missed payment–and it will not appear on your credit bureau report as such.
Lenders are also typically offering to waive any fees associated with these types of programs during the COVID-19 crisis.
Deferred Payment Programs are typically capped at six months.
Deferring the first payment will be easier than deferring the second one, and so on. Right now, six months is about the longest deferment you should expect to receive, but no lenders will do this all at once. Most of them will require that you reach out with a request for each individual payment that you are going to miss.
A mortgage deferred payment program is for your mortgage payment only.
Property tax installments and insurance premiums are entirely separate from these programs and must continue to be paid.
If municipalities and insurance companies offer similar programs (which most municipalities are currently doing), they should be contacted separately.
Other options may also be available to assist you:
i)lenders also have the ability to refinance your mortgage to pay out other debt(s) subject to qualification (via Welch & Co Team),
ii)restore your original amortization (which lowers your payment amount),
iii)hold a payment (during a temporary suspension of income),
iv)offer you a reduced payment for a specific time.
Rental property investors may also be eligible.
Property investors with tenants who have stopped making their rent payments will also be considered, however they will be assessed by the same rigorous criteria to determine true financial hardship
Note: Some provincial governments have introduced tenant relief programs. Rental-property owners can also encourage their tenants who have been adversely impacted by COVID-19 to apply for these programs if available.
To contact your lender regarding deferred mortgage payments please use the following phone numbers please:
Appraisals & Appraisers
A new update from the Appraisal Institute of Canada has come out on March 25, 2020
Appraisers have been deemed to be an essential service
New measures in place in order to ensure that appraisers are not put at risk
Appraisals & Appraisers
Clients will be asked to assist appraisers by providing the following in order to avoid entry into properties:
- interior photos of your property to the appraiser to be included in the report in place of photos that they would normally take themselves during an in-person interior inspection of your property.
A video tour of your property carried out by video-calling, FaceTime, WhatsApp, etc. – if you are willing and have the technology to do so.
any building specifications that you may have
Refinances – closings
As of March 25, 2020 we have several lenders that are requiring that all refinances be closed via FCT or FNF rather than a solicitor (and likely more to come)
MCAP
RMG
Communication is the key.
If you are going to miss your mortgage payment, contact your lender first! Be honest with them about your circumstances and have a plan for how you are going to get back on track.
If you are about to miss a payment and cannot get through on the phone lines, send your lender an email. Lenders may waive NSF fees if you miss a payment but can demonstrate to them that you attempted to notify them in advance.
Certain lenders have designated online portals to make your skip-a-payment requests:
MCAP: https://www.mymcap.ca/ login to
and submit a Skip-A-Payment request from the self-serve options menu.
RFA/ Street Capital: https://www.rfa.ca/covid19
Please be PATIENT with your lender!
Things are evolving every day and none of us have lived through similar circumstances before
Lenders are still conducting business as usual, although turn around times are currently much slower than under normal circumstances
Why do pre-approvals have such a bad rep? Realtors will often ask their clients if they are pre-approved, in order to ensure that they are not wasting their time showing the client properties for which the clients cannot qualify or cannot afford. But what, in fact, is a client getting, when they are pre-approved?
We at the Welch & Co Team, believe that pre-approvals are not worth the paper they are written on….
Here are some of the many reasons why we feel this way:
1) most pre-approvals are automated, which means that no underwriter is viewing the application: few and far between are the applications that are “vanilla” anymore, meaning employment as full time permanent salaried positions, with high end credit scores. All applications should be reviewed and underwritten in order for any pre-approval to be value.
2) if the application is for a purchase with < 20% down payment, the deal needs to be underwritten by both the lender and the insurer: even underwritten pre-approvals are not sent to the insurer for review.
3) pre-approvals do not taken into consideration the property, and a key part of the underwriting process includes the review of the property
4) most banks do not review documentation prior to issuing a pre-approval, which often leads to incorrect amounts in terms of capacity for the client (i.e. client says they make $50k per annum but are paid hourly – this means that a 2 year average has to be factored in and the 2 year average is in actuality $44k – hence their capacity to purchase would decrease substantially).
5) approximately 95% of pre-approvals do not reflect the lowest or best interest rate in the market place – rates can go up or down. Furthermore, not all lenders offer pre-approvals, and as such the client’s application may not even end up with the same lender with whom they were pre-approved!
6) not all of a client’s needs or goals are factored in when a pre-approval is issued.
What do we recommend INSTEAD of a pre-approval? At the Welch & Co Team, you will get full underwriting up front, of your application and documentation. If there are any issues that might affect your financing, you will know about them as well as the reason that they might be an issue. Each and every file gets our individual attention and is underwritten in order to ensure that there are no surprises! This is is also why we need all of your paperwork BEFORE we send in your application! Call us at 613-546-2989 to book your appointment today. We are ….More than a dotted line….
The Bank of Canada has increased the overnight rate by a quarter point, as of yesterday’s meeting.
What does this mean to you if you have a variable rate mortgage?
It means that the Bank of Canada Prime rate, which most lenders adopt as their Prime rate, has increased from 3.45% to 3.70%. With 5 year terms offering anywhere from Prime -.75 % (currently 2.95%) to Prime minus 1.00% (currently 2.70%) this still represents a far wiser option than the fixed rate mortgages for a 5 year term. This video is fantastic in explaining the risks/ benefits of taking a variable rate versus a fixed rate mortgage.
If you have a variable rate mortgage, or are considering one: YOU SHOULD WATCH THIS!
Image retrieved from Yahoo Canada.
Lenders normally have until Monday, following announcements made by the Bank of Canada on a Wednesday, in order to implement the changes. The announcement for an increased Bank of Canada Qualifying rate was made yesterday – an increase from 5.14% to 5.34%.
This applies to all borrowers that have less than a 20% down payment for their home purchase…
Call us at 613-546-2989 should you have any questions at all!!!!
https://www.thestar.com/business/2018/05/09/bank-of-canada-raises-mortgage-qualifying-rate-following-increase-in-big-six-banks-fixed-rates.html
Borrowed Down Payment Program
Did you know that it is still possible to borrow your down payment for your mortgage?!
Many folks think that this product is no longer available, however it is indeed! It is often misconstrued with another product: the 100% Financing Product, which is no longer available.
The key to the Borrowed Down Payment Product is that the lender must include the funds that were borrowed as a liability, as part of your application.
For instance:
You borrow $12,500.00 towards your purchase of a $250,000.00
home purchase. The loan amount of $12,500.00 must be part of the
liabilities on your application: if revolving credit then you must input
a repayment amount of 3% of the $12,500 therefore $375 per month.
Although details vary from one lender to another, it may well be worth your while to inquire with the Welch & Co Team about this product! The most important items in order to qualify for this product are to have good credit, and to have room to add the additional debt to your list of existing debts!
Key Features of the Product:
Property related
- 5-10% of the purchase price can be borrowed.
- High ratio insurance premium is slightly higher at 4.5%.
- >$75,000 <$500,000 purchase price
- 1-2 unit homes maximum.
Purchaser related
- No previous bankruptcies or consumer proposals.
- Credit profile strong (>650 minimum).
- Must have minimum two active trades for minimum two years.
- Source of borrowed funds can be personal loans, lines of credit, credit cards, gifts from non-immediate family members.
- Non-residing co-borrowers okay but no guarantors permitted.
- Ratios of income to debt same as normal.
- Borrower must be able to show that they have the ability to cover at a minimum the closing costs (1.5% of the purchase price)
Call us today to see if you might qualify for the Borrowed Down Payment Product at 613-546-2989!
You may have heard about the upcoming mortgage rule changes taking effect January 1st, but do you know how these may affect you?
The Office of the Superintendent of Financial Institutions (OSFI) issued some new guideline changes for the mortgage industry. The changes will go into effect on January 1, 2018, and will require mortgage applicants who need a mortgage representing less than 80% of it’s current market value (i.e. if home is worth $100,000, then your mortgage is < $ 80,000) to qualify at the Bank of Canada’s five-year benchmark rate (presently 4.99% subject to change) or the lender’s five year fixed term mortgage interest rate +2%, whichever is greater.
Here’s an example of the impact the new qualifying rate will have on the maximum mortgage proceeds and home purchase price. Amounts are based upon a combined Canadian family income of $75,000, 5-year closed term mortgage at a fixed> rate of 3.39%, 25-year amortization, $100,000 available for down payment and $700 in other monthly debt obligations:
| Up to December 31, 2017 | After January 1, 2018 | |
| 5 Year fixed Rate | 3.39% | 3.39% |
| Qualifying rate | 3.39% | 5.39% |
| Maximum Mortgage Amount | $400,000 | $325,000 |
| Down Payment | $100,000 | $100,000 |
| Maximum Home Purchase Price | $500,000 | $425,000 |
As you can see, these changes will affect the household that wants to purchase a new home, but they also will apply to anyone that applies for the refinancing of their home as well, for debt consolidation or any other reason!
In addition to this, we envision that changes will occur with regard to the tactics that lenders use for their mortgage renewals as well… Although the new rules stipulate that if you renew with your current lender, these new rules will not be applied to you, we surmise that they will most definitely affect you.
Think of it this way: currently, the Welch & Co Team offers all of our clients free reviews of their renewal offer with their current lender. This is in order to ensure that your current lender is actually offering you a competitive rate in the market place. Lenders are well aware that complacency and busy schedules mean that most households will simply sign the renewal offer from their existing lender. Let’s face it: this is the easiest route!
Right now, if your offer is not competitive, the Welch & Co Team can seek another lender with a more competitive product that offers the right fit for you and your needs. This helps to ensure that lenders make an attempt to remain competitive on rate – keeping them honest!
However, after January 1, 2018, knowing that their existing mortgage holders will now face these tougher rules if they want to go elsewhere at maturity, we surmise that the renewal offers will no longer be offered at competitive rates! Knowing that the easiest route for clients is to just sign their renewal offer from their existing lender without seeking better options. The incentive to offer competitive rates is dramatically reduced…The Welch & Co Team wants to ensure you are renewing to the best possible product to suit your financial needs.
So what can you do about it?
The one thing that you should NOT do, is simply sign your existing renewal offer in fear of not being able to qualify elsewhere! Remember that we are here to assist you and guide you through these mortgage changes, and we have a vast number of lenders from whom we can choose in order to ensure that you are getting what is best for YOU!
Take the time, give the Welch & Co Team a call, let’s talk, and see how we can help!:)
Learn more about the housing market in your city of choice! Feel free to contact us with any questions, or if you’re ready to move forward with your mortgage!
Hands up if you spent more than you wanted to this past holiday. From gifts to entertaining to travel, it’s easy to get swept up in the holiday spirit and dole out more cash than you first intended to. Now the credit card bills have started to arrive and you may be wondering where the extra money will come from? Often called the Holiday Hangover, lingering debt from this most wonderful time of the year can be a major financial burden all year long. Here are tips to get rid of it fast.
I was talking to a friend of mine this morning whose children are grown and out on their own. My question had to do with whether or not to keep doing one of our annual holiday traditions when it seemed my kids were being pulled to participate in other things, in other directions. “Do not stop your Christmas Eve traditions,” she said. “Traditions are so important; you’ll see it more as time goes by. And once you stop them, it’s very difficult to start them again.”
Every family celebrates special holidays in their own way. Christmas Eve is no exception with families incorporating a wide variety of traditions from the sacred to the sentimental. Here are a few of our favorites. Maybe they’ll inspire you to start a new tradition this year with the ones you love!
Various changes have been made once again by the Minister of Finance regarding the Canadian mortgage industry…this article highlights these upcoming changes….
Cooler temperatures and pretty soon falling leaves serve as a reminder that the fall season is fast approaching. As the seasons change, so do our activities and home needs. Even though summer is not quite over yet, it’s a good time to do some seasonal maintenance to keep your home running smoothly. The weather can change quickly, especially if you live in a colder climate and you don’t want to be caught unprepared. A bit of attention now will save costly repairs and aggravation later.
Have you ever fallen in love with a home, but just absolutely cannot stand the carpet in the living room? The kitchen cabinets are too outdated? The furnace or shingles need replacing immediately?
Rather than dismissing that particular property, consider utilizing the purchase plus improvement product! Allowing you to end your house hunt, and work towards making your dream home a reality.
While the prospect of purchasing a home for the first time in Canada is an exciting and important step, many newcomers choose to rent for the first several months to a year (or longer) after their arrival.
Before deciding whether to rent or buy, it’s important that you know what you can afford, weigh the options available and take the time to make the right decisions that will ensure a successful future in Canada. Do your research and consider the following:
