There has been a tremendous amount of news circulating over the last week about the financial challenges Canadians are facing at the onset of this COVID-19 pandemic. On Wednesday, March 18th it was announced that lenders may be able to defer mortgage payments for up to six months. This information has been greatly misinterpreted by the public and as a result, financial institutions have been inundated by inquiries from Canadians who have not yet been directly financially impacted by the crisis. At this time, we have been advised this congestion in the 1-800 inquiry process is actively obstructing those who desperately need support and information at this time. We would like to emphasize the following points:
- Payment deferral is need-based solution, it will not be granted freely
- A needs-test has been put in place to assess eligibility
- No payment forgiveness is in effect, only payment deferral
- Payment deferral means you can skip some payments, but they are added back on at the end of your mortgage timeline, or blended into your overall remaining number of payments
- Borrowers are still responsible to meet their obligation where possible
Lenders are assessing inquiries on a case-by-case basis where individual borrowers’ circumstances in the context of specific payment obligations will determine eligibility.
While you do need to contact your lender directly about payment deferral options, you can contact our team if you have any questions about your mortgage, or are concerned about your payment schedule.
Please be patient with the process.
Kind regards from our family to yours – we hope you are all staying safe.
Susanna, Michael, Carri-Lynn, and Kelly