This document is a compilation of various resources relating to COVID-19; from lender information, mortgage options and next steps, I have you covered. From deferring mortgage payments to information about additional financial and mental health support, this booklet has it all. If you have any inquiries regarding your unique financial details, please contact me directly. I look forward to assisting in finding the best possible solution for your situation.
LENDERS ARE HERE TO HELP
Many of the major lenders have pulled together to provide beneficial alternatives during this COVID19 crisis and help them ease some of their financial difficulty.
Depending on your lender. These options may be available to you during this crisis:
- Deferral of payments
- Re-amortization of the loan
- Capitalization of outstanding interest & costs
- Special payment arrangements
Please note when you defer payment, the lender in most cases, takes the interest and it will be compounded and add it to your monthly mortgage balance. Upon, the maturity of your mortgage term, payments will be calculated forward based on the higher mortgage balance.
To qualify, you must have lost your job or some of your household income due to COVID-19.
THE BIG BANKS ARE ON-BOARD
Big banks like Toronto Dominion Bank (TD), Royal Bank of Canada (RBC), Nova Scotia Bank (Scotia), Canadian Imperial Bank (CIBC), Bank of Montreal (BMO), and National Bank of Canada have responded to provide coordinated assistance for their clients. They are working with personal and small business clients to cope with the crisis.
Currently, they are all offering mortgage payment deferrals up to 6 months and are also giving relief on other credit products for every family who are experiencing these difficulties.
A mortgage deferral payment means their clients are not required to make regular payments up to six (6) months.
During this delay, please understand that interest will continue to accrue, and it will add to the mortgage account at the end of the deferral period.
CREDIT UNIONS
As the big banks and mortgage insurers, credit unions are also working and providing some relief amid this virus pandemic.
Desjardins
If they are having a burden of repaying, their loans can reach out to discuss other alternatives. The financial cooperative is reviewing their request on a case-to-case basis and give them solutions, which include payment relief for all financing products without affecting their credit rating.
Coast Capital
Noted that possible deferral of mortgage payments and relief on other credit products based on every different case.
VanCity
VanCity is also working to offer relief on a case-by-case basis and has noted for individuals to contact them to discuss available options. In other efforts to help, they are working to provide emergency capital, buy back foreign currency at the
originally sold rate for customers impacted by travel and waiving ATM fees and INTERAC e-Transfer® in Canada until April 30.
MFCs (MORTGAGE FINANCE COMPANIES)
MFCs are also doing their share to help households during this crisis. Similar to credit unions, all assistance is on a case-to-case basis. So they advise their clients to see and contact them for other options suited to them.
MORTGAGE INSURERS
Genworth, CMHC and Canada Guaranty are working to assist homeowners who have been affected by this COVID19 pandemic. They have increased flexibility and welcoming payment deferral up to 6 months for primary homeowners who but not exclusively purchased with below 20% down payment.
Genworth Canada
They have released a statement last March 16, 2020, outlining their Homeowner Assistance Program or HOAP, which is designed to help insured homeowners under Genworth Canada who could temporarily impact their ability to pay their mortgage. Homeowners who qualify under these lenders’ internal guidelines and Genworth’s Assistance Program will receive up to 6 months of relief and allowing them to recover and focus on what matters.
Canada Guaranty
March 16, 2020, Canada Guaranty noted with the Homeownership Solutions Program, Lenders can be able to capitalize on up to 4 monthly mortgage payments. Assist eligible homeowners as they are experiencing these challenging crises. Canada Guaranty is also prepared to extend this capitalization up to six monthly payments. This is assuming the original loan amount is not exceeded. Capitalization requests received before September 13, 2020, and the lender confirms the capitalization is being applied to help mitigate short-term financial burden resulting from COVID19.
Canadian Mortgage and Housing Corporation (CMHC)
CMHC is offering tools that can help homeowners who may be facing financial difficulty. The default management tools include loan re-amortization, payment deferral, outstanding arrears capitalization, and other eligible expenses and special payment arrangements. CMHC will also provide mortgage professionals with flexibility and tools to make timely decisions when working to find a solution to this crisis, including:
- Offering a temporary short-term payment deferral.
- Shifting a variable interest rate mortgage to a fixed interest
- rate mortgage to protect you from a sudden interest rate increase.
- Adding arrears or missed payments to the mortgage balance and spreading them to the remaining mortgage repayment period.
- They are extending the original repayment period (amortization) to lower their monthly mortgage payments.
- They are offering a special payment arrangement on a case-to-case basis of financial situation.
WHAT IF I RENT OUT MY HOME?
If you are a landlord and are renting out your home in Canada, your tenants may be facing some uncertainties about their future amid the
COVID-19 pandemic. To help alleviate your stress levels, and your tenants, the Provincial governments have rolled out plans to help:
British Columbia:
The government of British Columbia has imposed a moratorium on renters’ evictions. They will assist renters with up to $500/month for the next four months to help manage your rent payments. Premier John Horgan announced that there would be a provincial freeze on rental increases during this pandemic.
Alberta:
The province is considering a short term stay on eviction enforcement, but no plan has been made yet.
Manitoba:
Premier Brian Pallister has postponed all non-urgent hearings to avoid evictions from non-payment of rent. Also, they are suspending any rent increases scheduled this month of April.
Saskatchewan:
No rental policies currently in place.
Ontario:
They have suspended eviction orders until further notice. They are on the process of developing plans on this matter.
Quebec:
they have also suspended most eviction hearings amid this crisis.
Nova Scotia:
Suspension of evictions from not paying rent due to this crisis.
Prince Edward Island:
Suspension of evictions from not paying rent due to this crisis.
Northwest Territories:
Suspension of evictions from not paying rent due to this crisis.
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