Mortgage Payment Deferral helps ease financial burden
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Finding yourself under extra financial stress during these crazy times? If you are unemployed or your hours reduced during this COVID-19 pandemic, mortgage payment deferral might be a great tool to get you through these difficult times.
What is mortgage payment deferral
This is an agreement between you and your lender where your personal specifics are taken into consideration. This temporary arrangement is designed to help get you through the financial burden by postponing your mortgage payments for a specific period of time.
Mortgage Payment Deferral what you need to know
You are still paying your mortgage, but over a longer period of time. A mortgage deferral means that you not make regular payments on your mortgage for up to 6 months. During the time you defer your mortgage payments, interest will continue to accrue. You will pay more interest over the life of your mortgage, but a deferral will help with short-term cash flow.
discretionary per lender
Only your lender has the legal right to offer you a mortgage deferral. Each case will be addressed individually and a customized plan created, which could include: skipping a payment, deferral payments up to six months, a partial payment plan, increasing the amortization, capitalization of arrears or refinancing into a new mortgage.
** Please see the list below for your Lender contact info. **
Some things the lender will want to know
As part of the process to obtain a deferral, you will be required to submit a detailed breakdown of your personal assets, income and expenses.
Credit score
Deferring mortgage payments will not negatively affect your credit score. A lender approved deferment isn’t counted as a missed payment, so it won’t appear negatively on your credit report. At a time when new processes are being implemented, it would be in everyone’s best interest to review your credit report for accuracy. We might see missed or late payments recorded as program timelines may be missed. We are confident there will be procedures developed to address these oversights.
other payments
Mortgage deferral payments DO NOT include property tax or insurance premiums. Property tax payments & insurance premiums are separate from these programs, and must continue to be paid. If you need help, please contact the companies directly.
mortgage deferral payments and Rental properties
Rental property owners may also be eligible for some relief. Property investors with tenants who can no longer make their rent payments will also be considered for the program. They will be assessed with the same rigorous standards.
Please note: Some provincial governments have introduced tenant relief programs. Rental property owners can also encourage their tenants who have been impacted by COVID-19 to apply for these programs if available.
PERSEVERANCE and patience
If you find yourself facing financial hardship and are concerned with missing a mortgage payment, please contact your lender before this happens.
Lenders are overtaxed right now and you will likely have trouble getting through. Most are prioritizing call backs, or email replies, based on payment due dates. They are working as fast as possible to reach out to all in a timely fashion.
Have you taken advantage of prepayment options and/or increased your payment? Consider lowering these to the original payment amount to help free up some cash.
We are available to answer any questions. Wishing you all health and safety in these challenging times. Warmest regards Bob and Team.
Lender contacts
ATB 1-800-332-8383
B2B 1-800-263-8349 email:[email protected]
BMO 1-877-895-3278
Bridgewater 1-866-243-4301
CIBC 1-800-465-2422
CMLS 1-888-995-2657 option 4 email:[email protected]
Optimum 1-866-441-3775
Equitable 1-888-334-3313
Connect First 403-736-4000
Chinook Financial 403-934-3358
First Calgary Financial 403-736-4000
First National 1-866-557-5509 email:[email protected]
Haventree 1-855-272-0051
Home Trust 1-855-270-3630
HSBC 1-888-310-4722
ICICI 1-888-424-2422
Manulife 1-877-765-2265
MCAP 1-800-265-2624 email: [email protected]
Merix 1-877-637-4911 email:[email protected]
Marathon 1-855-503-6060
RBC 1-866-809-5800
RFA (Formerly Street Capital) 1-866-939-5005 email: [email protected]
RMG 1-866-809-5800
Scotia 1-800-472-6842
Servus 1-877-378-8728
Street Capital 1-866-683-8090
TD 1-866-222-3456
