Mortgage deferral changes

OSFI, Canada’s banking regulator, is ending the special regulatory treatment they gave banks so they could offer mortgage deferrals for up to six months.

The changes are effective immediately and, until the end of September, any mortgage deferrals granted will only be for three months rather than six months that was being granted previously for the special COVID-19 mortgage deferrals

Many mortgage deferrals offered by the banks will end between September and October and obtaining a mortgage deferral in the future could become much more difficult.

Those who have deferred their mortgage payments really need to review their financial circumstances.

Can you now start to make your mortgage payments or are you still in a difficult situation where you may not be able to pay your mortgage?

You may be able to negotiate a longer deferral period with your bank, but the reality is that some may have to consider selling their homes.

This is the time to have those difficult conversations.

The thought of losing your home can be one of the most stressful situations you can go through, but the reality is that some may have to sell.

Missing mortgage payments can seriously reflect on your credit as past due payments will show on your credit report for seven years. Missing one mortgage payment could prevent you from obtaining another mortgage for years.

It’s important to communicate with your lender sooner than later if you know you won’t be able to make your payments.

You may have some options to solve this problem, but speaking early to a mortgage broker is really your best course of action if you know you won’t be able to re-start your mortgage payments if your bank will not offer a further deferral of your payments.

Here are some ways that a mortgage broker can advise you:

  • Perhaps you can refinance to lower your monthly payments to keep you within your budget.
  • We can see if we can obtain a new mortgage with another lender and pay off your current lender.

If you fall behind on your mortgage, the interest and costs can accumulate quickly; it is critical to seek assistance early before things get out of your control.

Please call me at 1-888-561-2679 for a confidential conversation or email me at [email protected]

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About the Author

April Dunn is the owner and a Mortgage Broker with The Red Door Mortgage Group – Mortgage Architects. She has been assisting clients to purchase, refinance or renew their mortgages for over 20 years.

April has experience as a Credit Union manager, a Residential Mortgage Manager with a large financial institution and as a licensed Mortgage Broker. By specializing in Strategic Mortgage Planning she has the tools available to build a customized mortgage plan, with the features and options that meet your needs.

April provides a full range of residential and commercial mortgage financing options for clients all over the province of British Columbia and across Canada through the Mortgage Architects network.

Contact e-mail address: [email protected] or by phone at: 888-561-2679.

Website:  www.reddoormortgage.com

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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