COVID-19 Mortgage Payment Deferrals

Dated: 03/25/2020

Views: 69

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*This post was written by the team at PINSKY MORTGAGES, and it has been shared to this website with their permission. Please contact your personal financial institution for advice on your specific circumstances. If you would like assistance with your mortgage, or if you would like to apply for a mortgage pre-approval, the team at Pinsky Mortgages would be happy to assist you. 

 

Q: What Does Payment Deferral Mean?

A) You don't have to pay your mortgage payment.

 

*Please note that payment deferrals are on a case-by-case basis and at this time, borrowers are not automatically eligible.

 

Lenders will be working with their clients to cope with the economic fallout of the virus. For Canada's 6 big banks, lenders have stated that they would allow up to 6 months of deferrals of mortgage payments

 

Other national lenders (First National, RMG, Lendwise, Home Trust etc.) and Credit Unions, are also allowing clients to miss payments or defer payments. There is no set allowance yet.

 

Will it Hurt my Credit Score?

There is a CBC article going around about the potential for credit scores being bruised with deferred payments. However, if you get permission to defer payments, there will be no hit to your credit score! Please be sure to pay all mortgage payments going forward unless specifically noted by your lender.

 

Should I Defer Payments?

If you need to then yes, you should defer. If not, then try to hold on for a few more weeks/months.

 

When you defer payments, the lender will take the interest that would have been paid and add it to your monthly mortgage balance. This means that you're going to be paying interest upon compounded interest. In the end, your balance at maturity will be higher, and you will have paid less off of your principal balance. However, this is a small price to pay to feel more financially secure in your home. 

 

How do I Defer Payments?

There are 3 ways to defer payments:

1. Call Your Lender

2. Message/Email Your Lender

3. Walk to a Branch (only for banks/credit union)

 

*Lender contact info below

*Payment deferrals are done on a case-by-case basis.

 

Right now, lenders are being inundated with calls and requests for, among other things, payment relief on mortgages.

 

From anecdotal evidence from clients who contact me, there are long (extremely long) wait times when calling their lenders for information. The lenders say “talk to your bank” but my advice is to wait a few days to even a week or more to contact them. This is a fluid situation and more time will allow for better service and new developments to take place.

 

Other Ways Lenders/Brokers Can Help!

Unfortunately lenders do not allow brokers to help with payment deferrals. However, depending on your lender and insurer (if applicable) there may be other options available to you, such as:

  • Re-amortization of the loan

  • Capitalization of outstanding interest & costs

  • Restructure mortgage

  • Other special payment arrangements

  • Deferment of Payments

Also, if your mortgage is insured, CMHC, Canada Guaranty, and Genworth have assistance programs to help their lenders and you in these times.

 

Additional Links:

 

CMHC COVID-19 Mortgage Payment Deferrals

Canada Guaranty's COVID-19 Update

Government of Canada COVID-19 Website

BC Government COVID-19 Website

 

Lender Contact Information (a-z)

 

Bank of Montreal

1-877-895-3278

Website

 

Canadiana

1-877-315-1633

 

CIBC

1-800-465-2422

Website

 

CMLS Financial

1-888-995-2657

Website

 

Dominion Mortgage

1-866-928-6810

Website

 

Equitable

1-866-407-0004

Website

 

First National

1-888-488-0794

Website

 

Home Trust

1-855-270-3630

Website

 

HSBC

1-888-310-4722

Website

 

Lendwise

1-866-675-7022

Website

 

Manulife

1-800-268-6195

Website

 

MCAP

1-866-809-5800

Website

 

Merix

1-877-637-4911

Website

 

National Bank

1-888-835-6281

Website

 

Street Capital / RFA

1-866-939-5005 

Mortgage Numbers Starting with 4 

1-877-776-6888 

Mortgage Numbers Starting with 6

1-833-228-5697)

Mortgage Numbers Starting with 7, 8 or 9 

Website

 

RMG

1-866-809-5800

Website

 

Royal Bank

1-800-768-2511

Website

 

Scotiabank

1-800-472-6842

Website

 

Tangerine

1-888-826-4374

Website

 

TD Bank

1-888-720-0075

Website

Blog author image

Chris Lambert

Hi, I’m Chris. I help people like you to buy, sell, and invest in real estate throughout beautiful British Columbia. I love what I do, and I’d love to help you too. I'm an experienced and hard w....

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