At the height of COVID-19 many of Canada’s lenders and mortgage insurers stepped up to offer mortgage payment deferrals for periods of up to six months. We are now approaching the end of these deferrals yet many are still without work or still have a reduced income. Are you concerned about how to maintain payments to remain in your home?
The Canadian Bankers Association reported that at the height approximately 16% of bank-originated mortgages had at one point been deferred. Many have resumed normal payment schedules but lenders are still reporting current deferrals still outstanding anywhere from 4.5% to 18%.
The window for applying for a mortgage deferral hasn’t closed just yet. Some lenders have announced extensions until September 30th to apply but with restrictions on who can now apply, they are reviewing now on a case-by-case basis. CMHC has also stepped forward to help homeowners promising “new tools with our partners to help Canadians during this unprecedented pandemic.” Details are forthcoming but they are considering extended amortization periods, special payment arrangements & adding missed payments to mortgage balances.
There will be some who exhaust all their options using savings and lines of credit to cover payments and need to sell. The housing market has remained surprisingly strong so if you are forced to sell there is strong demand unlike most previous economic downturns. If you are a homeowner experiencing difficulty meeting your payments due to interrupted employment or income get in touch with me today!