COVID-19 & your mortgage

I want to share my perspective on the mortgage market and how this virus might affect your mortgage and your ability to pay your mortgage due to layoff or other reasons.

The spring market is still active, so I’ve included some advice if you are either completing a home purchase or will be placing an offer on a home in the near future.

It was announced this week that Canada’s big banks will allow mortgage payment deferrals for up to six months. Other mortgage lenders, including credit unions and mortgage companies, have also put measures in place to assist clients that are in financial distress as a result of the virus.

If you need assistance with your mortgage payments, please reach out directly to your lender. Most lenders have options available to skip a payment or put a hold on a payment.

Each lender has different options.

The phone lines are very busy, so please ensure you are prepared to answer their questions when you get through to discuss assistance and please have your mortgage number handy.

Here are some guidance on how many lenders will be considering your request for payment relief as they will be reviewing on a case-by-case basis.

If you have been laid off by an industry directly impacted by COVID-19

If your income has been directly impacted and you need immediate assistance, please reach out to your lender right away to discuss payment relief for up to six months.

If you are still working but have other factors impacting your ability to make a payment

You may have been financially impacted by COVID-19 and are still working but are in immediate need of assistance, please reach out to your lender immediately to discuss options which may include payment relief.

Were you laid off from an industry not directly impacted by COVID-19?

The lender may request further information regarding the lay-off, so please be prepared with that information. The lenders will work with you for a solution.

Do you have questions, but aren’t facing immediate hardship?

If you have a general question please either reach out to your mortgage broker for assistance or delay calling the lender to give them time to work with those who have immediate needs.

If everyone follows the above guidelines, this will help alleviate the volumes and stress for all parties involved.

Perhaps you are in the middle of a property purchase or will be making an offer soon.

Here are a few items to consider that also might help relieve some of your stress.

What is the source of your down payment and closing costs?

If the funds are coming from upcoming wages, investment funds or are being gifted by a family member, please move the funds so they are easily accessible. Bank branches are closing. Earnings are being interrupted.

The funds need to be available so you can get them to your lawyer in time for closing. Check your investment statements as the values have been impacted by the market conditions.

Need a property inspection or appraisal?

This is changing daily and some providers are no longer willing to enter homes.

Your subject for financing date

The lenders are extremely busy right now. Ensure that you have completed a pre-approval and all of your required lender documents are ready in advance of placing an offer.

We are now recommending a minimum of 10-14 business days to finalize financing requests.

Lawyers and notaries

Please ensure that your lawyer or notary will be available to sign documents for you so give them a call. As of right now, this meeting has to be done in person.

Everything is changing rapidly. Our lenders are adapting and modifying their policies to help everyone through these difficult times and will continue to do so as we move forward.

All your professionals, including mortgage brokers, lenders, realtors, home inspectors and appraisers, etc. will do all that they can within their control to assist you.

If you or someone you love has any questions about what to expect or other things to consider for your mortgage in the future such as an equity take-out, refinancing at today’s low rates, consolidating debt, etc., please reach out to me directly as I’m happy to assist.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.