Everyday brings new news and an adjustment to a new, albeit temporary, reality. No one could have predicted the situation we would all be in globally and all we can do is be patient and cooperate with our new normal.
We’ve all read the news and been directly affected by this global COVID pandemic. The Canadian government has stepped up to assist Canadians and small businesses, and our national banks have taken measures to help their clients. See our list below for a quick summary of all the benefits and packages that have been introduced to help us all cope throughout COVID-19.
-The Trudeau government has increased the earlier-mentioned wage subsidy from 10% to 75%. These are retro-active to March 15th and will be offered for three months to allow businesses to get through what is anticipated to be the worst time of this crisis.
-The Trudeau government has also provided interest-free loans for Canadian small businesses with payrolls less than $1 million. They will cap at $40,000 and will be interest free for the first year, allowing businesses some time to readjust and get back on their feet as Canada comes back to normal.
-Another $12.5 billion is being provided to help small and medium businesses with cashflow through the Small Business Development Bank of Canada. Small businesses will need to apply for these government-assisted loans through their financial institutions.
-The Canadian federal government is also going to defer GST/HST payments and taxes owed on imports.
-The Canadian Central Bank (Bank of Canada) cut its key interest rate to 0.25%, a low not seen since June 2010.
-The big six banks in Canada have all agreed to defer mortgage payments for customers for up to six months, allowing people to get through this time. Royal Bank, Bank of Nova Scotia, Toronto-Dominion Bank, CIBC, Bank of Montreal and National Bank of Canada have agreed to allow payments be skipped for a period of time and the interest accrued is added to the outstanding balance. As expected, requests are pouring in as people prepare to adjust their finances at this time. Within days of announcing this measure, the banks received over 213,000 applications and requests to do so.
We are still in early days to really know how all this will affect Calgary’s real estate market in the short and long term. We have been keeping busy with clients and doing virtual show homes, and if you have any questions, please do reach out as we have enjoyed our conversations we’ve had with clients. Stay tuned for updates we will provide you as they come in!