What Will Mortgage Financing Look Like In 2021?
Michael Hallett • November 3, 2020
There is no doubt that 2020 was one for the books. It will be remembered as a year like no other. COVID-19 has caused significant national economic disruption, to say the least. While we’ve seen government intervention, record unemployment, mortgage payment deferrals, record low-interest rates, we’ve also seen continued growth in the housing market.
So what can we expect as we complete the final quarter in 2020 and move into 2021? Well, low interest rates and increased scrutiny on all mortgage applications are most likely in the cards.
Low interest rates
Right now, both fixed and variable rate mortgage rates are at all-time lows. The cost to borrow money for a mortgage has never been cheaper. According to the Bank of Canada, we can expect them to stay low for the foreseeable future. “Interest rates are very low, and they are going to be there for a long time. Canadians and Canadian businesses are facing an unusual amount of uncertainty, so we have been unusually clear about the future path for interest rates.”
And while low interest rates are a good thing for financing property now, unfortunately, they won’t be as easy to access as in previous years.
More scrutiny on mortgage applications
While we don’t expect lender or insurer guidelines to change much in the coming months, securing mortgage financing in a post-COVID economy has already proven to be harder as lenders apply increased scrutiny to each application. Every mortgage application is being looked at more deeply, and additional documentation is being requested to substantiate your application. Lenders are being more cautious about who they’re lending money to.
If you’re self-employed or rely on overtime, bonuses, or picking up additional shifts to make ends meet, securing a mortgage is going to be more difficult for you. As lenders look at a 2 year average for employment, if you took a hit to your income in 2020, that will impact you in 2021. Any type of non-guaranteed income will be more scrutinized.
If the pandemic impacted your employment and you deferred any payments (credit card, loan, line of credit, or mortgage), expect to be questioned. Lenders will ask for your story; they will want to know why you had to defer payments and how you are now in a better financial position.
Unfortunately, one of the common complaints about getting a mortgage is that it is very document-intensive. Lenders want to see a lot of supporting documents for every mortgage application. And moving into mortgage financing in 2021, you can expect even more requests for supporting documents.
Have a plan in place
So while the housing market continues to grow and low rates make it a good time to buy, the best way to prepare for increased scrutiny and documentation on your mortgage application is to plan ahead.
If your mortgage is up for renewal, you’d like to refinance, or you’re planning on buying a new property, the best thing to do is to get started immediately. Getting together your documents will take time; having a plan on what that looks like is the way to go.
I would love to have a conversation and outline all your options. If you have any questions, please don’t hesitate to contact me anytime!
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One of the most common questions, “how long does it take to get pre-qualified?” My response, “how fast can you provide the information I need.”
Playing in the forest today. Always fun exploring. #mountainbikingmortgagebroker
Mortgage Brokering meets mountain biking and craft beer. A couple months ago I set for a bike ride with the intention of answering few mortgage related questions, mission accomplished. Any good bike ride pairs nicely with a tasty beer which we enjoyed @parksidebrewery. Hope you see the passion I have for brokering, biking and beer. @torcabikes #mountainbikingmortgagebroker
My thighs were cold all day, it was ‘that’ deep. I was choking on snow all day.
The weather report was 36 cm of new snow, it was more like 45-50 cm of light deep powder. Insane day of skiing.
Spotted a ski-bunny today @kirstinjhallett so I trapped ‘er. 📸 credit @troy.hartley
Aidan leading the pack up the Lemming Line in seek of fine fresh powder.
Beautiful British Columbia! A cold winter day at its finest.
Aidan and I braved the -19C temperature and windy conditions for the boot to knee deep turns...it was a no-brainer.
Happy Holidays. Seasons Greetings. Merry Christmas. All the best from Kirstin, Aidan and Michael. Enjoy your family time.
Snow report for today was boot to knee deep in places. Simply an awesome day rippin’ with the kids, I had to show them that I still got it. 📷 credit @jhalskiing
It’s that time of year for my annual post, the Christmas Tree pilgrimage. The only that changes year after year is that Aidan gets taller! Not to worry though, the Canadian tuxedo jacket remains the same. HAPPY HOLIDAYS everyone. Much love to all.
Fresh wood in the morning...where is this treasure trail going to take me?
TEASER alert...at thats what I think they call it in the business. Years ago a wrote a blog called BEERS BIKES AND MORTGAGES. I some how (in my head) blended all 3 topics into 1 blog. Simply put, I enjoy aspects of all 3 with each of them providing something different. I re-united with the talented Regan Payne on a project that I think will shed a bit more light on who I am and what I do. #craftbeer #mountainbike #mortgagebrokerbc #dlccanadainc
Here is to looking forward past injuries, feels good to be riding again. It was a 18 week grind!
Extreme tubing, watch until the end. Aidan manages to hold on.
Lake life as a passenger is a good life. Captain @kirstinjhallett . #woodlake #kalamakalake
Yet another reason why our license plates say BEAUTIFUL BRITISH COLUMBIA on them. An evening enjoy the view on Pitt Lake.
Surfing! Don’t need functioning hands to surf. It was nice to do something active. Thanks @jordspring #sakinaw
Good thing there were a few other vehicles with winches on the front.
He was OK, thumbs up. The roll cage and 5-point seat belt did its job.
My sons intro to operating a side-by-side on his own. Watch to the end.
The Lookout over looking Tulameen BC. Took some 4x4ing to get there, but we did it.
The day started out great. Exploring the back country roads of BC, Stave Lake area. Views of Alouette Lake in the background
Impromptu ride on Burke. I dreamed of the day Aidan would ask to go for a ride...today was the day, “Dad do you want to go for a ride?” Heck ya, let’s go! This was a fun feature at the end.
An afternoon of exploring the Stave Lake zone. Planning to return soon once the snow melts to get some vertical.
Found a fun little gap-drop to session. I have my moments when I like my tires leaving the ground.
This would have been a fun stunt once upon a time!
And so it begins...another tool for adventuring! So different so fun!
You know it’s steep when your hand is touching the snow, high risk high reward.
The snow report suggested 8 cm had fallen, it was more like 25-30 cm.
Now that he has a dirt bike the hunt is on for me too. This is the first ride trying to figure out the timing of the throttle, clutch and brake...second ride was even better.
Exploring Pinecone Burke Provincial Park a month ago with @troy.hartley. Standing in the site of the old ski lodge.
A well weathered tree coming through yet another winter with Yak Peak 2,039 metres in the background. Putting my limited artist talent to the test, these iPhones and filters making anybody a photographer.
A successful reconnaissance mission we crossed Falls Lake, ski toured up towards Zopkios Peak 1921 m. It was a exceptional picnic destination. The skiing was shit!
Who’s is going to go first?...I’ll go if you don’t! No friends on a powder day! @j_penner70 📷 @sheascottcolpitts
An epic day. Everything was perfect. Depth of Snow. Visibility. Temperature. Even the company.
In the green room today on the best coast amidst winter...not a bad place. 📷 @dgm_images
I saw this hat on Instagram, that very moment I knew I needed it. As a BC boy born and bred The Outdoorsman hat needed to be added to my collection. As someone who loves BC and most things outdoor, I’m now glad I have a cool hat to wear and fly the flag of BEAUTIFUL BRITISH COLUMBIA. It will be in my bag for all post-exploration celebratory cold pints. If you want to check them out or add one to your collection go to @nineoclockgun ...and yes my facial hair matches the hat as well.
When two of your ski buddies are 13 years old, you know you’re raising rippers. @paigerriley
My ski buddy getting untracked turns. It was knee to thigh deep all day for him, only shin to knee for me.
We went for a snowshoe this afternoon, but we probably should have considered taking our flippers instead. Our timing was off by one day.
From sea to snow capped peaks, it’s obvious why Vancouver and BC continue to be one of the best places to live. It’s engraved on our license plates, BEAUTIFUL BRITISH COLUMBIA.
Ancient blue glacier ice craving out deep valleys. It’s pretty cool standing underneath one...photo credit @dustanwoodhouse
This is a great start to the day!
No better way to share the great outdoors than with friends. @troy.hartley @mike_ilic711 @j_penner70
The ski out back to the truck was more of an adventure than we bargained for...
Exploring the BC backcountry, it did not disappoint...it never really does.
Thank god we are all narcissistic and have the ability to take pictures of ourselves 🤪. This is taken pre-turkey dinner, I’m sure we will all be back in our comfy clothes soon! Merry Christmas!
The crew shredding some turns , it was a 23,000 vertical foot kind of day.
Happy belated Hanukah, Merry Christmas and Happy Holidays to all. Be sure to enjoy the festivities.
Top of Swan Falls. I’ve said it many times before and I will say it again, our license plates say it all. BEAUTIFUL BRITISH COLUMBIA. #gooutside
The coveted annual mission to get our Xmas tree, with of course my Canadian tuxedo jacket on.
Yet another reason (unlimited really...) of why the Left Coast is the best coast! @tami0777
Moss, a non-vascular plant and Mother Nature’s carpet reclaiming the forest.
Capitalizing on a break in the wet coast rain storms.
Just follow the brown line switchbacking through Mother Nature. She’s so damn beautiful!
Day 3 for Black Magic was a bit snowier than initially expected. Thanks to the person who took a few minutes to build a snow creature.
Beauty day for a ride! I should have considered bringing my touring skis.
The West Coast is the Best Coast. #nofliter at sunset.
This was Day 1 on my @yt_industries Capra Pro 29. I thought the last bike was the best, it was a Capra Pro 27. I never thought the small differences in geometry and wheel size would have such a huge positive impact on my riding. Boy was I wrong! Best bike ever!
Oh boy! See a toy...buy a toy! New steed! YT Capra Pro 29 hitting the trails soon.
A tasty beverage while on the water yesterday from @backcountrybrewr and @backcountrybrewing
Epic ride with boys yesterday. Into the Mystic, Last Call, Happy Hour and Lord of the Squirrels. 5 hrs 15 mins, 31 km and 1,397 vertical metres.
Whistler slick rock is my favourite.
Wood to wood gap in Whistler.
Passing underneath the Ironworkers Memorial Bridge on the return journey of dinner-by-boat. No filter.
And now the training starts for Paris 2024 summer olympics.
Archery target: before, during and finished.
Aidan’s first day in the Whistler Bike Park, he had a blast and we rode trails I didn’t think we’d ride 😳. I’m sure we’ll return soon enough.
A rare sighting at the Whistler Bike Park, it’s been at least 10 years.
When the opportunity presented itself, I couldn’t pass up one of my favourite slick rock rolls.
Pre-dinner antics...it’s totally safe!
Aidan is captaining the watercraft, mom in just the passenger. Kalamaka Lake.
#Drewmboat camo @parksidebrewery
Safety first when roasting marshmallows.
Great place to press snooze for 20 minutes. Chez Labowka.
Raw kale. Just not the same as a kale caesar salad.
Saratoga Beach fire.
Canadian tuxedo.
Happy Canada 🇨🇦 Day to everyone near and far. I hope it’s a kick ass day. Play safe.
The @yellowdogbeer squirrel chaser or otherwise known as the chew toy was a hit with me and Moka Labowka
It’s always fun to start the trail with a repel. #mountainbike #climbing
It only took me a half dozen or so tries but I managed to cross the halfway line. This old guy still has it! Fun times.
Follow your path, at times you never know where it’s going to take you. Trust the outcome. Having fun in The Green Room.
This old guy was collecting a few air miles today.
Going vertical. #slickrock
I have a ski buddy, now it’s time to train a biking buddy.
I’m really looking forward to riding this gem once it re-opens. #burkeinmybackyard
Enjoying a distanced beverage with @senorwad @yellowdogbeer
Aidan and a couple buddies are now members at the Pitt Meadows Golf Club. @greggmcnally @genevemcnally @wendy22boddy @jaradboddy @kirstinjhallett
Raw and unedited. Old school skinny with a drop at the end.
I’m still HOME ALONE! Looking forward to the day when I’m able to have some friends over to share these @backcountrybrewing Widowmaker IPAs. #backcountryphotocontest
Zoa Peak, Coquihalla summit 1,500 vertical metres of skiing.
Distancing myself from the real world!
The dry land version of the @andrei_svechnikov37 lacrosse-style goal executed Aidan.
Skis or bike? Bike. The snow won’t stop me.
Does anybody need or want any firewood? It’s free...you come pick it up.
I needed to buck up the trees they fell in the last wind storm. Task complete.
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If you’re like most Canadians, chances are you don’t have enough money in the bank to buy a property outright. So, you need a mortgage. When you’re ready, it would be a pleasure to help you assess and secure the best mortgage available. But until then, here’s some information on what to consider when selecting the best mortgage to lower your overall cost of borrowing. When getting a mortgage, the property you own is held as collateral and interest is charged on the money you’ve borrowed. Your mortgage will be paid back over a defined period of time, usually 25 years; this is called amortization. Your amortization is then broken into terms that outline the interest cost varying in length from 6 months to 10 years. From there, each mortgage will have a list of features that outline the terms of the mortgage. When assessing the suitability of a mortgage, your number one goal should be to keep your cost of borrowing as low as possible. And contrary to conventional wisdom, this doesn’t always mean choosing the mortgage with the lowest rate. It means thinking through your financial and life situation and choosing the mortgage that best suits your needs. Choosing a mortgage with a low rate is a part of lowering your borrowing costs, but it’s certainly not the only factor. There are many other factors to consider; here are a few of them: How long do you anticipate living in the property? This will help you decide on an appropriate term. Do you plan on moving for work, or do you need the flexibility to move in the future? This could help you decide if portability is important to you. What does the prepayment penalty look like if you have to break your term? This is probably the biggest factor in lowering your overall cost of borrowing. How is the lender’s interest rate differential calculated, what figures do they use? This is very tough to figure out on your own. Get help. What are the prepayment privileges? If you’d like to pay down your mortgage faster. How is the mortgage registered on the title? This could impact your ability to switch to another lender upon renewal without incurring new legal costs, or it could mean increased flexibility down the line. Should you consider a fixed rate, variable rate, HELOC, or a reverse mortgage? There are many different types of mortgages; each has its own pros and cons. What is the size of your downpayment? Coming up with more money down might lower (or eliminate) mortgage insurance premiums, saving you thousands of dollars. So again, while the interest rate is important, it’s certainly not the only consideration when assessing the suitability of a mortgage. Obviously, the conversation is so much more than just the lowest rate. The best advice is to work with an independent mortgage professional who has your best interest in mind and knows exactly how to keep your cost of borrowing as low as possible. You will often find that mortgages with the rock bottom, lowest rates, can have potential hidden costs built in to the mortgage terms that will cost you a lot of money down the road. Sure, a rate that is 0.10% lower could save you a few dollars a month in payments, but if the mortgage is restrictive, breaking the mortgage halfway through the term could cost you thousands or tens of thousands of dollars. Which obviously negates any interest saved in going with a lower rate. It would be a pleasure to walk you through the fine print of mortgage financing to ensure you can secure the best mortgage with the lowest overall cost of borrowing, given your financial and life situation. Please connect anytime!
Bank of Canada holds policy rate at 2¾%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario June 4, 2025 The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%. Since the April Monetary Policy Report, the US administration has continued to increase and decrease various tariffs. China and the United States have stepped back from extremely high tariffs and bilateral trade negotiations have begun with a number of countries. However, the outcomes of these negotiations are highly uncertain, tariff rates are well above their levels at the beginning of 2025, and new trade actions are still being threatened. Uncertainty remains high. While the global economy has shown resilience in recent months, this partly reflects a temporary surge in activity to get ahead of tariffs. In the United States, domestic demand remained relatively strong but higher imports pulled down first-quarter GDP. US inflation has ticked down but remains above 2%, with the price effects of tariffs still to come. In Europe, economic growth has been supported by exports, while defence spending is set to increase. China’s economy has slowed as the effects of past fiscal support fade. More recently, high tariffs have begun to curtail Chinese exports to the US. Since the financial market turmoil in April, risk assets have largely recovered and volatility has diminished, although markets remain sensitive to US policy announcements. Oil prices have fluctuated but remain close to their levels at the time of the April MPR. In Canada, economic growth in the first quarter came in at 2.2%, slightly stronger than the Bank had forecast, while the composition of GDP growth was largely as expected. The pull-forward of exports to the United States and inventory accumulation boosted activity, with final domestic demand roughly flat. Strong spending on machinery and equipment held up growth in business investment by more than expected. Consumption slowed from its very strong fourth-quarter pace, but continued to grow despite a large drop in consumer confidence. Housing activity was down, driven by a sharp contraction in resales. Government spending also declined. The labour market has weakened, particularly in trade-intensive sectors, and unemployment has risen to 6.9%. The economy is expected to be considerably weaker in the second quarter, with the strength in exports and inventories reversing and final domestic demand remaining subdued. CPI inflation eased to 1.7% in April, as the elimination of the federal consumer carbon tax reduced inflation by 0.6 percentage points. Excluding taxes, inflation rose 2.3% in April, slightly stronger than the Bank had expected. The Bank’s preferred measures of core inflation, as well as other measures of underlying inflation, moved up. Recent surveys indicate that households continue to expect that tariffs will raise prices and many businesses say they intend to pass on the costs of higher tariffs. The Bank will be watching all these indicators closely to gauge how inflationary pressures are evolving. With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts. We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs. Governing Council is proceeding carefully, with particular attention to the risks and uncertainties facing the Canadian economy. These include: the extent to which higher US tariffs reduce demand for Canadian exports; how much this spills over into business investment, employment and household spending; how much and how quickly cost increases are passed on to consumer prices; and how inflation expectations evolve. We are focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. We will support economic growth while ensuring inflation remains well controlled. Information note The next scheduled date for announcing the overnight rate target is July 30, 2025. The Bank will publish its next MPR at the same time.
