Strategies to keep your mortgage payments up to date and your credit strong amid COVID-19 life.
I’m working at home today, in self isolation in Peachland, BC, and fielding more than a few calls from concerned clients.
I’ve been brokering mortgages since 2014 in the Okanagan and before that, worked in the Health Minister’s office at the Saskatchewan Provincial Legislature. Over this time, many crises have come and gone. But I’ve never seen this kind of situation before.
People are rightfully worried about recent or impending job losses, reduction to their working hours and how our nation’s mortgage lenders will respond to inevitable COVID-19 payment disruptions.
Included in this article are options you have at your disposal to navigate the current situation.
1) Talk to your mortgage broker or mortgage lender about existing skip or payment deferral mortgage clauses.
Lenders have clauses in your mortgage contract right now that allow you to skip a payment or defer a payment due to certain circumstances.
Keeping in communication with your lender is key during this time if your payments may be disrupted. Lenders will work with you to defer or skip payments and ensure that these payment alterations don’t register on your credit bureau as missed mortgage payments.
It sounds likely that the 6-month deferral is going to happen since both the nation’s lenders and mortgage insurers are tweeting about it. However, the deferred mortgage payments plan (so far) relates to insured mortgages through CMHC/Genworth/Canada Guaranty. News articles have been clear that most payment deferral requests will be made on a case by case basis.