Real Estate And COVID-19 – Mortgage Deferral

Real Estate and COVID-19 - Mortgage Relief

** UPDATED – April 2, 2020**

COVID-19 has turned everything upside down.

The global financial volatility associated with COVID-19 has lead to lower interest rates, which would normally lead to an increase in higher real estate values. However, these are anything but normal times.

Many people I’ve spoken with are concerned about their livelihood and whether they will be able to maintain their current lifestyle.

Some have asked about refinancing to take advantage of the lower interest rates, while others are asking about payment deferrals.

Refinancing

Refinancing is often a consideration when there is a reduction in the interest rates. The process for this has not changed in the current market environment. You need to contact your mortgage broker or lender and apply for a new mortgage if this is something you are considering.

Mortgage Payment Deferral

The government has pledged to help Canadians suffering financially due to COVID-19, by asking Canada’s big banks to allow people to defer mortgage payments for up to 6 months.

The details vary from lender to lender, and many people are commenting that they are unable to get answers from their bank, or they don’t know what questions to ask.

The Canadian Banker’s Association released a statement to clarify the general concepts. It is important to note the following:

“Customers should understand that this is not mortgage forgiveness. Mortgage deferral means that payments are skipped for a defined period of time, during which interest which would otherwise be part of the deferred payments is added to the outstanding balance of the mortgage.”

You can read the full article at cba.ca/mortgage-deferral-to-help-canadians-experiencing-financial-hardship-due-to-covid-19

Questions I recommend that you ask your lender when considering a mortgage deferral:
  1. What is necessary to qualify for a deferral? (Many of us will not qualify)
  2. What is the application process and do I have to apply every month?
  3. What documentation will be required?
  4. How will interest be accrued?
  5. Will there be any additional fees?

For the time being all that I can suggest is to contact your lenders call centres or visit their websites for more information. Below are the links specific to the COVID-19 help pages.

Alterna Credit Union:  www.alterna.ca/COVID-19

ATB: https://www.atb.com/company/news/stories/customer-relief-program/

Bridgewater Bank: [email protected]

Bank of Montreal: www.bmo.com/covid19

B2B Bank (Laurentian Bank): https://b2bbank.com/covid19

Chinook Financial: https://www.connectfirstcu.com/COVID-19

CIBC: https://www.cibc.com/en/personal-banking/advice-centre/covid-19.html

CMLS Financial: https://www.cmls.ca/covid-19-response

Community Trust: https://www.communitytrust.com/covid-19-update/

Connect First: https://www.connectfirstcu.com/COVID-19

Desjardins Credit Union: https://blogues.desjardins.com/press_release/2020/04/covid-19-relief-youth-rates-masks.php

Duca Credit Union:https://www.duca.com/about-us/resources/duca-news/in-the-event-of-financial-challenges-due-to-covid-19-were-here-to-help/

Equitable Bank: https://www.equitablebank.ca/covid-19

Equity Financial Trust: https://www.haventreebank.com

First Calgary Financial: https://www.firstcalgary.com/member-relief-program?utm_campaign=COVID19Relief&utm_content=LearnMore&utm_medium=AllMediums&utm_source=AllSources

First National: https://www.firstnational.ca/residential/covid-19

First National Financial: [email protected]

First Ontario: https://www.firstontario.com/covid19

First Ontario Credit Union: https://www.firstontario.com/covid19/updates

Haventree: [email protected]

Home Trust: https://www.hometrust.ca/statement-from-home-trust-on-covid-19/

HSBC: https://www.hsbc.ca/customer-service/covid-19-update/

ICICI: https://www.icicibank.ca/managed-assets/docs/deferred-payment-program-mar-2020.pdf

Manulife: https://www.manulifebank.ca/support/financial-relief-mortgage-form.html

MCAP: [email protected]

Meridian Credit Union: https://www.meridiancu.ca/Good-Sense/News/A-message-from-Bill-Maurin-CEO-on-COVID-19.aspx

Merix/Lendwise: [email protected]

Marathon: [email protected]

National Bank: https://www.nbc.ca/en/about-us/news/news-room/press-releases/2020/20200317-covid-19-la-bnc-offrira-des-mesures-de-soutien-aux-clients.html

National Bank of Canada: www.nbc.ca/personal/notice.html

Optimum: https://www.rbc.com/covid-19/index.html

RBC Royal Bank: https://www.rbc.com/covid-19/index.html

RFA/Street Capital Mortgage begins with 4: [email protected]

RFA/Street Capital Mortgage begins with 6: [email protected]

RFA/Street Capital Mortgage begins with 7, 8 or 9: [email protected]

RMG: [email protected]

RMG Mortgages: https://www.rmgmortgages.ca

Scotiabank: https://www.scotiabank.com/covid-19

Servus: https://www.servus.ca/news/alerts/covid-19/financial-relief

TD Bank: td.mediaroom.com/2020-03-17-Canadas-Six-Biggest-Banks-Take-Decisive-Action-To-Help-Customers-Impacted-by-COVID-19

For TD customers directly impacted by COVID-19 and as a result, facing financial challenges, contact TD directly at 1-888-720-0075

Verico Lifecycle: [email protected]

XMC: [email protected]

 

If you have any questions that you would like me to address, please leave a comment below or contact me directly at 905-718-0173 and I will try to answer these questions for you.