Of course, there are many serious concerns about everyone’s health and wellbeing right now. It doesn’t mean that those who are unaffected by the virus don’t face other challenges due to COVID-19.
Many homeowners have lost their job or face reduced incomes, but they still must pay their mortgages. That can be very stressful in many ways, including the fear of losing their homes.
A Better Understanding of Mortgage Deferrals
If you’re having difficulty making mortgage payments during the Coronavirus outbreak, there’s good news. The Canadian Mortgage & Housing Corporation (CMHC), and Canada’s six largest banks, have introduced The COVID-19 Mortgage Payment Deferral program.
In simple terms, a mortgage deferral means that your mortgage payments may be skipped for a set period of time. In the case of the COVID-19 Deferral program, the time frame is up to six months.
Here are a few new stories and websites to help you learn more about the facts and clear up some of the confusion you may have about mortgage deferrals.
- Frequently Asked Questions – The CMHC website is a great source of information and answers for your questions about mortgage deferrals.
- Canada’s big banks field 213,000 requests for mortgage deferrals – If you are worried about paying your mortgage, you’re not alone. Almost a quarter-million Canadians applied to the program in the first week alone.
- What to do about mortgage payments during the COVID-19 outbreak – There are some other options available for mortgage relief. The CMHC has also relaunched a program it introduced in the 2008 financial crisis, the Insured Mortgage Purchase Program. The program can protect homeowners against mortgage defaults.
- Need to defer mortgage payments? – The mortgage deferral program can be very helpful, but it is not the “mortgage holiday” that you may have heard about. This article explains some of the costs that are involved, and some of the options available to you.
The Tar Team is here for you during the Coronavirus outbreak to help you in any way we can. If you have any questions or concerns about mortgage deferrals, or any other real estate matter, just ask us!