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March 18th – What should I do to protect my mortgage?

For updated Coronavirus information please go to this site: https://www.canada.ca/en/public-health/services/diseases/coronavirus-disease-covid-19.html


Are the efforts to protect your mortgage by the bank enough to save your mortgage (your ability to be a homeowner) enough?

Opinion:

You may want to read the official response from the government below before you read this article.

In some areas what the government is offering is enough, payment deferrals don’t put the mortgage into jeopardy

OFFICIAL STATEMENT FROM THE GOVERNMENT OF CANADA:

Role of Financial Institutions

The Minister of Finance is in regular contact with the heads of Canada’s large banks and continues to encourage them to show flexibility in helping their customers whose personal or business finances are affected by COVID-19. The Superintendent of Financial Institutions has also made clear his expectation that banks will use the additional lending capacity provided by recent government actions to support Canadian businesses and households.

In response, banks in Canada have affirmed their commitment to working with customers to provide flexible solutions, on a case-by-case basis, for managing through hardships caused by recent developments. This may include situations such as pay disruption, childcare disruption, or illness. Canada’s large banks have confirmed that this support will include up to a 6-month payment deferral for mortgages, and the opportunity for relief on other credit products. These targeted measures respond to immediate challenges being faced across the country and will help stabilize the Canadian economy.

Mortgage Default Management Tools

The Canada Mortgage and Housing Corporation (CMHC) and other mortgage insurers offer tools to lenders that can assist homeowners who may be experiencing financial difficulty. These include payment deferral, loan re-amortization, capitalization of outstanding interest arrears and other eligible expenses, and special payment arrangements.

The Government, through CMHC, is providing increased flexibility for homeowners facing financial difficulties to defer mortgage payments on homeowner CMHC-insured mortgage loans. CMHC will permit lenders to allow payment deferral beginning immediately.


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