A mortgage can be described as any conditional conveyance of property, which is used as security for the repayment of a loan. At this moment, Canada’s economic situation can be described to be in recession. The economic recession is a result of the Coronavirus pandemic. The country is experiencing a second wave of the pandemic, and as reported by several health research institutions, there might be a third wave as the spring season approaches. 

Before the Coronavirus-induced economic recession, mortgage rates in Canada were roughly stipulated as follows: 1.74% for a year closed, 1.79% for five years closed,  and 2.94% for ten years closed. The landholdings experts indicate that if interest rates were reduced, and then there was a restricted supply behavior, the home prices would spike up. For instance, reports indicate that a lot of mortgage deferrals perished in October, and unless these borrowers find new occupations to cater to their essential needs, they will be forced to spend their savings, and in turn, sell their residential homes in the coming three to six months. 

Acquiring the most suitable mortgage might seem simple, but it is not. This is because the most suitable mortgage rate is usually not the cheapest mortgage rate. It might look appealing even when it’s not. Wisdom applies when one recognizes that the most suitable rates are those that reduce the general costs of borrowing a loan. However, to acquire the best rates of mortgage for any Canadian, one has to ensure that the following criteria are met: 

  1. Pass the federal government stress test, and ensure that they have reasonable debt ratios. 
  1. Be in a position to prove their income. 
  1. Have a clean credit record, whereby there are a few or no derogative indications on one’s report.  
  1. Have a fulfilling employment incumbency. 
  1. Have positive FICO credit scores, whereby the recommended one lies around 680-720 and above. 

The Canadian central bank had reduced the interest rate by 0.5% at the beginning of 2020, and also for three other additional separate occasions. Analysts have cited the central bank’s policy, and have further reasonably argued that the Canadian mortgage rates will continue to lower. One of the top public mortgage service providers predicts that house costs could reduce by double figures in early 2021, amidst the COVID-19 pandemic. Other analysts further argue that borrowing costs will not increase until economic stability is fully achieved in the nation at large.  


It is important to note that even before we had the Coronavirus pandemic, the Canadian central bank had already simulated economic vulnerabilities, and the high household debt was one of them. Keeping that in mind, and additionally the COVID-19 pandemic, economic recession is highly inevitable, and therefore the mortgage rates are likely to remain unchanged between now and the year 2021 commercial mortgage broker Vancouver

Facts You Should Know Regarding Canadian Mortgage 2021
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