So much about the last 4 months in Canadian finance has been weird
In previous economic disasters those in trouble did a couple of things, some people sought insolvency protection and those with houses often refinanced to pay debt
2/
And in mortgage world refinance for folks with debt problems has effectively vanished
It is best observed among the companies who specialize in sub prime mortgage lending
3/
Dead serious: way, way below last year's business
During an economic catastrophe?
Why would that be?
4/
A huge chunk of these refinances are for self employed and commissioned people to pay bills
5/
If your mortgage, car loan, personal LOC and credit cards are on deferral and no property tax either: you're golden
Oh and the 3 adults in your household are on CERB: $6K a month
Why would you think about refinancing?
6/
Yet people know there is trouble on the horizon, their job is gone or their small business is in awful shape, all this deferral won't go on forever so why not be proactive and plan for the future and check out mortgage refinance?
Nope, never happens, not ever
6/
Q1 2021 with the big action in Q2
So no mortgage refinancing to consolidate debt during a worldwide pandemic BUT huge acceleration in people buying houses
Mortgage World is Upside Down