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One thing that has been nice to see during this difficult time is how the institutions that support the Canadian economy have stepped up to bolster us all during COVID-19.
Here are ways that the big banks are stepping up.
This past Friday April 3rd, several banks including the big 5, Bank of Nova Scotia, Toronto-Dominion Bank, Royal Bank of Canada, National Bank of Canada and Canadian Imperial Bank of Commerce all cut credit card rates in order to support customers during the COVID-19 shutdowns.
This is just the latest action that the banks have taken to help Canadians manage the financial burden of COVID-19. Earlier in March banks began offering up to 6 months of mortgage payment deferrals to help Canadians who may have difficulty making mortgage payments during COVID-19.
Understanding Mortgage Payment Deferral - CMHC
While most banks won't outright postpone payments interest free it does offer some much needed relief to anyone temporarily laid off due to shut downs or slow work during the pandemic.
The only area thats been slowing in the last week are mortgage rates which are seeing some rise after multiple rounds of cuts following the bank of Canada's cuts in March. On March 27th the Bank of Canada lowered the overnight rate to a 1/4 percent.
According to a James Laird, president of mortgage brokerage CanWise Financial and co-founder of Ratehub.ca "a few weeks ago, the best mortgage rates were something in the range of between two and 2.5 per cent. Today, they're between 2.5 and three per cent because, as he puts it, "they are demanding a higher risk premium than what they typically do." CBC
That said rates are still very low historically.
Looking for help navigating your financing for a home. The best person to speak with is Jim. In addition to being your real estate broker Jim has been a mortgage broker with Entrust Financial for over 2 decades.
Have a question call Jim at 905-409-9967.
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