What you need to know about getting a mortgage during the COVID-19 pandemic

With the uncertainty that seems to hang over almost every aspect of our lives right now, it is understandable that many Canadians are not sure if now is a good time to buy or sell. When it comes to the current state of the real estate market, I defer to the real estate professionals. However, here is some information on what you need to know about qualifying for a mortgage during the pandemic.

Permanent full-time applicants & self-employed applicants
If you are still working and have permanent full-time employment, then qualifying for a mortgage is business as usual. For self-employed applicants, typically lenders and insurers ask for 2 full tax years to establish an average annual income. In recent weeks, depending on the industry, some self-employed applicants have also had to produce recent invoices and proof of bank deposits to show that they are still operating their business.

Applicants receiving government assistance 
At this point, CMHC and the other insurers are not using government assisted income as qualifying income for mortgages. If an applicant has been laid off and is receiving EI, we can't use that income, nor the income the applicant will be receiving when they are back at work. This can drastically affect the mortgage approval amount and can hinder an applicants ability to switch lenders to take advantage of a lower interest rate, as they need to have qualifying income in order to switch lenders. In some cases we may be able to use EI as qualifying income for ​seasonal employees that are typically laid off this time of year and have a return date set in stone,

Please reach out if you have any questions or need help navigating these challenging times.