A Record-Breaking Month for Canadian Housing Markets With COVID-19 restrictions being lifted across Canada, home…
These are unprecedented times. Hard-working, responsible people are finding themselves sick, temporarily unemployed or unable to work due to family obligations. If COVID-19 has you worried about how you or your tenants will pay your mortgage, there are options available to help support you during this difficult time.
Canada’s banks, the federal government, and the Canada Mortgage and Housing Corporation are stepping in with relief in the form of a six-month mortgage deferral program.
Here’s what you should know.
According to Kyle Green, owner of the Green Mortgage Team, most mortgages allow you to skip a payment. The six big banks are offering up to 6-month mortgage deferral with no impact to your credit rating. Payments and unpaid interest will be added to your balance and paid at a later date. You must contact your bank to make arrangements.
To read his complete guide, please click this link – COVID-19, Financial Primer
The payment deferral is for people who will struggle to make their next mortgage payment. If you are in a position to make your payments, you should. Here are important considerations before making the decision.
- Review current spending, reduce or eliminate discretionary spending.
- Prioritize all your debts. Leftover cash saved by not paying your mortgage should be put towards higher interest debt reduction.
- Investigate other relief programs.
- Determine your current and estimate future cash flow so that you develop an overall solution for the next 3 to 4 months.
Talking with your mortgage professional will help you clarify your financial picture and stay informed. The Government of Canada has a number of online resources available to help you manage your finances including Take Charge of Your Debts – an online tool designed to help you understand debt problems, and includes information on making a budget, budget counseling, collection agencies, credit, and credit repair.
To watch the full 27-minute video presentation from Kyle Green please click here.