First of all I hope this email finds you safe and healthy. So as I am sure you are seeing everything is being turned upside down and that includes real estate. (This is my second email as my first one never saved and I had to take a day to calm down because it had so many links and info in it)... LOL... so I am going to fast track.
First of all if you are a Landlord, tomorrow is April 1st - Rent Day... I am attaching two links from reliable sources of mine of how to handle your tenants in this situation.
These should give you some guidelines to follow while the the Board is closed and no evictions can take place.
Now if you are Tenant and you have lost your income here is a link for you to see what you should do keep your communication open with your Landlord:
I am going to be honest here, no one has been in this situation before and we are all trying to assist everyone and answer questions and get through this pandemic without serious hard but the truth of the matter is, our Country will be turned upside down and as long as we can come out healthy the rest we can figure out as we go.
So many situations are happening now. We have people that have bought NEW homes set to close in July and August and NEED to sell their current home to close on the new build. These people need to get ready for virtual marketing and get organized before it is too late. The builders will NOT give you back your deposit and if you do not close, they will SUE. On the other hand if you do not SELL your home, your Mortgage Company may not give you a Mortgage as it was based on the sale price of your home in a completely different market. Sales the last two weeks have taken a big dip ! I am not surprised as we are all practicing staying inside and social distancing.
Everyone is trying to find options for everyone. The Fed have a plan where you can now defer your mortgage payments if you are laid off due to Covid- 19 - but please note DEFER means the interest will be added on to the back end of your mortgage. It is not not paying at all. They will get their money.
When the world opens up again, we will see an influx of homes on the market. I have no doubt. The market value will depend on each situation I would assume. There will be people that are financially stressed and need to dump their home relatively quickly to stay above it all and downsize. There will also be people that may decide to divorce after being cooped up with their spouses... LOL. I know it sounds funny, but trust me these times can be trying even on the best of relationships. Especially when you throw in financial issues.
The Bank of Canada lowered Prime twice this month and we are still seeing the mortgage rates go up right now.
This article kind of explains it as well. What is going with rates: https://www.thestar.com/business/2020/03/28/as-the-central-bank-rate-plunges-some-consumers-are-paying-higher-interest-on-their-mortgages.html
Banks are still doing appraisals on properties but only outside. They will not enter homes. So deals that were done prior to Covid that are now starting to close are closing (and some even if the Buyers are not working due to the Virus) So the banks are trying to work with everyone concerned. These times are very different that 2008/2009 ... this is even worse than 1989/1990 (which was the worst experience of my life and I wouldn't wish it on anyone)..... so I completely get everyone's anxiety of money and how are they going to pay and what will happen to their home now. Is it going to decline in value? Mostly likely the answer is YES. Will it rise again... more than likely yes.
The key is to speak to professionals and work out a plan if you need to sell or buy. If you held off buying, I think you may find opportunity in this and if you were looking to move up .. you may now be able to afford what you couldn't before. But if you are buying and selling the same market it will all be relative. If you have lost money selling your home, you will more than likely save money on the one you are buying. Rates still are a hell of lot lower than 1990 when I had a mortgage at 16%.
So for now, let's just practice social distancing and stay inside. Thank our front line workers who are keeping us safe and healthy. WE are lucky to live in a Country like Canada. We will get ahead of the curve. Special thanks to all our Grocery Store Clerks too who are working and probably don't want to be. Our Health Care Professionals and Our First Responders. We are in good hands.
If you need or have any personal questions about your financing or home equity or anything real estate related that I can answer just shoot me an email. I will be happy to find out the answers for you if I don't know.
We did a Zoom meeting yesterday with a ER Dr. and a Lawyer and 2 Mortgage Brokers and together we all gathered thoughts and idea to help get people through these days without financial suicide. Even those that purchased homes and were going to close with Stock Market funds are now panicked. No one was left untouched in this. So together we can make a difference and let's work together.
Landlords must go easy on Tenants who have lost their employment. Maybe defer your payments to stay afloat if their money is what you are dependent on. Tenants need to know this is not a free ride either and together you guys can work something out.
There is a link you find out all the benefits available and I will include it here as well for those of you need to apply. https://www.ckbw.ca/2020/03/22/need-help-heres-how-to-apply-for-ei-covid-19-related-benefits/?fbclid=IwAR1pH2QayNjLYYz4Qvu1aoIeWyY7diBlUw8xoStWXIs41Pv1Mnb4h40RSEQ
Ok I am off to a meeting online but know I am text or an email away to help. Stay tuned for more as the information changes daily.
Also if you are on Twitter, I am active on Twitter most of the day with thoughts and suggestions and I follow some very bright people that enlighten me every day as well. That is @REWoman on Twitter.
Take care everyone and I will be in touch soon.
Be Safe and Healthy