Mortgage agent Hannah Stojanovski shares her key takeaways for real estate agents and mortgage lenders from the recent webinar about COVID-19 hosted by Equifax.
Key takeaways and possible responses
Mortgage Deferrals have Shown in the past to be beneficial in avoiding credit delinquency
We found this information to be especially interesting as many believe the opposite. If the financial difficulty is present then proactively requesting a deferral can assist in further credit default both on your mortgage or re-allocating those funds towards unsecured or credit card debt payments. This will be very beneficial in protecting customer credit moving into the future and ensuring they remain eligible for home buying post-pandemic.
The way we can assist our customers:
Ensure we can offer them clear guidance to make the right credit decisions that will ensure they maintain their credit rating and eligibility post-pandemic.
Delinquencies and Utilization of Credit will increase
This is important today in order for us to ensure we are able to service our clients, post-pandemic. Today we should be working together to ensure all customers can avoid default and utilization as much as possible. One possible solution is introducing secondary mortgage financing to assist in covering living expenses during the downturn. These loans don’t report to Equifax and will ensure clients keep their debt level low and payments made on time.
CONCLUSION
Ensuring that Canadian homeowners and potential homeowners can maintain their credit ratings is a big post-pandemic action that we can collaborate on today. This factor will ensure that these customers have the ability to buy and sell in the same way they could pre-pandemic.
For more information, feel free to contact Hannah:
Click the link below to view the full Powerpoint presentation