Expert advice on mortgages and pre-approvals amid the COVID-19 crisis

Question: How has the mortgage process, or mortgage pre-approval process, changed for pre-construction real estate at this time?

First, thanks so much for allowing us the opportunity to be join in on the conversation during these challenging and unusual times we are all navigating through. Like many organizations, at TD, our priority is the health and safety of our customers, colleagues and the communities we serve.

Banking, and in this case specifically, mortgage financing, is vital for Canadians to continue being able to transact in real estate. We've been working to support our customers in obtaining home financing while adhering to all safety measures that are in place to keep everyone safe. Home financing has typically involved face-to-face meetings where we would engage purchasers, provide mortgage financing advice and go through a credit application.

While the COVID-19 situation has caused us to change our approach, we have been able to continue providing elevated home financing advice and support to our customers during this time through the use of digital capabilities, including required signatures on official documents transmitted through email. Where clients are unable to engage with us digitally, we continue to leverage our retail branch network and reinforce physical distancing in all in-person interactions. Any purchaser wishing to meet at a local branch should call ahead first to confirm their preferred branch is open (as we have temporarily closed many of branches due to COVID-19) and also to book an appointment by telephone or through mobile check-in.

Are you using different technologies than before to facilitate pre-approvals and/or mortgages?

Several years ago, TD introduced a robust and user-friendly digital mortgage pre-approval tool where customers can obtain an online mortgage approval in minutes, which lets customers apply for a mortgage pre-approval when and where they want. Leveraging digital e-signing capabilities isn't new to the bank however, bringing that technology to a high-touch, advice-based channel like ours is relatively new for us.

Can you offer any advice to buyers of new homes/condos during this time? Any due diligence items they should be mindful of?

Our first piece of advice would be to ensure you stay safe throughout the home financing process and adhere to physical distancing guidelines at all times during any in-person interactions. The other piece of advice, which hasn't changed and is applicable at all times, is to be engaged throughout the process and work with reputable experts that may include new home builders, lawyers and mortgage professionals. Part of our advice always includes encouraging our customers to work through their budgets and to be realistic with what they can afford, so they are comfortable with their mortgage payments and are prepared for any unexpected life events or costs that may arise.

Any other insights on the current (or future) of real estate financing that you’d like to advise us about?

The industry has changed as a result of COVID-19 but as mortgage financing is vital, people are still transacting in real estate, just going about it differently. So, if you are aspiring to purchase a home, know that the process has evolved to enable you to go about doing so during these challenging times. Looking ahead, we will continue to look at how we can support our customers through the COVID-19 pandemic. Some of the technology we've embraced will definitely enable our Mobile Mortgage Specialist channel to continue providing elevated advice and enhanced service levels long after this crisis is behind us.

Ed’s note:

During the COVID-19 crisis, NextHome is checking in with industry insiders and experts to get the latest insights and information on the pre-construction real estate industry as a whole. Thanks to Patrick Gibbon from TD Canada Trust for taking the time to answers our questions.

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