Current Canadian Mortgage Rates as of September 14, 2020

A graph to denote fluctuating current Canadian mortgage rates.

What are current Canadian mortgage rates in right now? It is an interesting question which will take much research as each bank has their own rates. This can be a long and arduous process. However, I thought I would post some currents rates of some of Canada’s big banks to help make things a bit easier for you guys. So without further ado, here are the current mortgage rates in Canada below:

Current Canadian Mortgage Rates

Royal Bank of Canada

TermSpecial OffersAPR
2 Year Fixed2.090%2.150%
5 Year Fixed2.290%2.320%
5 Year VariableRBC Prime Rate – 0.350% (2.100%)2.130%

TD Bank

TD Special Mortgage Rates

TermSpecial Rate3APR    4,   5
3 Year Fixed Closed72.19%2.23%
5 Year Fixed Closed72.24%2.26%
5 Year Fixed Closed
High-Ratio9
2.07%2.09%
5 Year Variable Closed62.05%2.07%
TD Mortgage Prime Rate is 2.60%

Scotiabank

Variable Rate Mortgages

Effective September 14, 2020

Posted Rate
Scotia Ultimate Variable Rate Mortgage – 3 Year Closed Term3.350%1
Scotia Flex Value Mortgage-Closed 5 Year Term2.650%2
Scotia Flex Value Mortgage-Open 5 Year Term5.750%3

Closed Term Fixed Rate Mortgages

TermRate
1 year3.090%
2 years3.190%
3 years3.790%
4 years4.090%
5 years4.790%
7 years5.390%
10 years5.890%

Short Term Fixed Rate Mortgages

TermRate
Open Mortgage – 6 month5.750%
Open Mortgage – 1 year5.750%
Flexible/Closed Mortgage – 6 month4.250%
Special Offer Information
1
APR 3.87%
2
APR 2.70%
3
APR 5.75%

Conclusion

Buying a house is one of the most important purchases you can make. And for most, obtaining a mortgage is necessary to make that home purchase happen. So finding the right mortgage rate for your circumstances is imperative because choosing the wrong rate could cost you thousands of dollars. So do your research; ask lots of questions; read the fine print and take an honest appraisal of what you can afford. Compare mortgage rates AND ask at the bank if they’ll match the better rates at other financial institutions. Doing so will give you the information you need to make the right decision. And, potentially save thousands upon thousands of dollars over the course of the mortgage. Happy house hunting!

New Loans For Black Business Owners – Economic Relief From COVID-19

An open sign to denote the benefits of new loan program for black business owners.

New loans for black business owners was announced by Prime Minister Trudeau yesterday. The purpose of the loan program is to help black business owners and entrepreneurs by providing economic relief during COVID-19. The goal is to help these ones recovery and grow their businesses, and provide an economic boost. The government also feels that this is way to help curve systemic racism. So what are some of the details of the new program?

New Loans for Black Businesser Owners – Highlights

The $221-million program will receive about $93 million from the federal government over the next four years. It will receive $128 million from eight financial institutions. Here ‘s the actual breakdown from the Prime Minister’s website below:

The program will include:

-Up to $53 million to develop and implement a new National Ecosystem Fund. This will support Black led business organizations across the country. It will help Black business owners and entrepreneurs access funding and capital, mentorship, financial planning services, and business training.

-Up to $33.3 million in support through the new Black Entrepreneurship Loan Fund that will provide loans of between $25,000 and $250,000 for Black business owners and entrepreneurs. The Government of Canada is also partnering with financial institutions, including RBC, BMO Financial Group, Scotiabank, CIBC, National Bank, TD, Vancity, and Alterna Savings, to make up to $128 million available in additional lending support.

-Up to $6.5 million to create and sustain a new Black Entrepreneurship Knowledge Hub. This Hub will collect data on the state of Black entrepreneurship in Canada and help identify Black entrepreneurs’ barriers to success as well as opportunities for growth. The Hub will be run by Black-led community and business organizations, in partnership with educational institutions.

When Will This Program be Implemented?

The Prime Minister did not announce when the new loan program for black business owners will be implemented. Also, there were no details about how one would specifically apply. And there were no details on the criteria needed to qualify for the loan. And there were no details about the interest rate, repayment etc. So we will have to wait for further announcements to get more clarification. But don’t worry, as soon as we have more details to share – share it we will!

In conclusion, for many black business owners struggling from the impact of the coronavirus, it is a nice announcement to think of additional funding options. However, they will need more details and action to benefit from this program. So we’ll wait and see for now, and update you as soon as we have more information. Stay safe everyone.

What can I do if I Can’t Pay My Bills Because of Coronavirus?

Picture showing dilemma of how can I pay for bills during coronavirus

“I can’t pay my bills because I was laid off because of Coronavirus.” Sound familiar? This is a scary scenario but unfortunately this is a reality for many today amid this pandemic. This reality is apparent when we see that in just one week in Canada, over 1 million applied for EI or other emergency support benefits. If you find yourself in that scenario, what can you do to help yourself and your family?

Communication – Talk to Your Bank or Utilities providers

Communication seems overly simple but this is vital especially when everything is so fluid right now and it is hard to know what information is correct. So, whoever you pay bills to, you need to contact them and let them know your situation and see what options you have to lighten your bills because of your changing job situation, due to the coronavirus. There might be options to help. Here are some things you can do if you have bills to pay in these five main areas.

Mortgage Payments

A few days ago, the countries six largest banks announced a plan for deferral of mortgage payments to up to six months. Individuals and business owners should contact their bank to discuss available options. Each deferral request will be reviewed by a case by case basis.

Rental payments

At the moment there does not appear to be a program to address help for rentals. Some areas like Ontario are encouraging landlords not to evict anyone during this time. However, the best thing to do is to contact your landlord to see if there are any options to help provide some financial relief. You can also look into the government’s Covid-19 relief package to see if you qualify for any of the relief. Also, you can look into any provincial relief packages that your province might provide to help give you money to pay for your rent. (Updated March 26/20 – B.C. now has provided help of up to $500/month to help renters pay the rent on their homes.)

Car Payments

Contact your financial institution to see if there are options regarding paying the loan or lease of your vehicle due to financial hardship. For example here’s that information from the RBC website concerning this:

Client relief: The events surrounding COVID-19 are truly unprecedented and disrupting the daily lives of Canadians. RBC has put in place financial relief programs for personal and business clients who have experienced financial hardship as a result of the COVID-19 outbreak. To help clients with immediate relief, some of these programs are available by self-serve, including skip a mortgage payment, an auto-loan payment, and personal loan payment. These options will provide you with direct relief for one month. Please know that we will continue to work with you to provide further financial assistance, including further payment relief (for example, up to 6 months on mortgages), should you need our help.

Utility Payments Such as Power, Phone, TV, and Internet

It is best to contact your provider to see what options you have due to financial hardship. These companies and utility providers are well aware that many people are in this scenario and they are looking to assist. For example, here’s an excerpt from Shaw’s website:

We continue to monitor the COVID-19 situation closely and we know that the threat posed by the spread of the virus will result in some Shaw customers facing unexpected financial challenges. We also know that particularly in times like these, we rely on being connected – to our family, our friends, or our workplace – or keeping our families informed and entertained. If you are having any concerns about paying your monthly Shaw internet bill due to hardship resulting from the COVID-19 situation, we will work with you to find a flexible payment arrangement that considers your financial and connectivity needs.

Credit Card Payments

It is best to contact your financial institution and let them know of your situation. Communication again is key! Fortunately, many banks and financial institutions are reaching out to clients and letting them know their options to help lighten the financial burden. For example, here’s an email I received from Capital one:

We understand that COVID-19 is having an impact on our customers’ lives. For those who are experiencing financial distress, we’re working on options to provide support through this difficult time. As soon as we can, we will make more information on these options available.

For additional information about our response to the COVID-19 situation, please visit our webpage. We’ll continue to update it with relevant information.

Conclusion

Not being able to pay your bills during the Coronavirus pandemic is a horrible prospect. We are in uncharted waters and do not know how long this will go. As result, it’s hard to make decisions – especially financial ones. The best thing we can do is to get as much information as possible on our options for potential relief by directly communicating to the companies we owe money to.

There’s an old saying that there is wisdom in a multitude of counselors. This is true because the more information we get from our creditors, the greater chance of some sort of financial relief. So look at your bills one at a time and see if there is a chance of some sort of relief. The result might be a little less stress in these already very stressful times. Take care and be safe.