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.

2) Lender updates

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.

Click HERE for a list of contact information for major Canadian Mortgage Lenders.

Click HERE for 6 Mortgage Deferral FACTS

Click HERE for Canadian Mortgage Lenders’ COVID-19 Responses

3) Federal Government Relief – Links to benefits

The Federal Government announced a relief package today to help Canadians and Canadian businesses weather the COVID-19 storm.

LINK to OFFICIAL Government of Canada COVID-19 Economic Response Plan (Support information for individuals, businesses and industry)

Here are some details from CBC News.

  • $2 billion boost to Child Care Benefit

  • $900 biweekly for Emergency Care benefit up to 15 weeks

  • $5 billion Emergency Support Benefit for unemployed without EI benefits

  • 6-month interest free moratorium on Canada student loan payments

  • 10% wage subsidy for small business

  • Deferred tax payments until after August 31, 2020

Applications for Federal Government relief benefits can be made in April through the Canada Revenue Agency website.

This blog will be updated daily to reflect changes to all of the above and any new information will be added as it becomes available.

Be well.  Thank you very much for reading.  Please share :)

Michael Huber
Huber Mortgage

PS – I’m always available if you have any mortgage related questions.  Contact me HERE.

If you’d like some handy tips on how to save money when you buy your next house, Check out the free Huber Mortgage Home Buyers Guide HERE

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