For some of you, it’s already been over a month of self-isolation. You have your daily routine set in stone. You have even explored every square inch of your household by now. However, have you thought about your mortgage and the current situation?
On March 19, 2020, most of Canada’s big banks issued a joint statement that mortgage deferrals would be offered to anyone impacted by the COVID – 19 crisis.
RBC has options for Immediate and Longer-Term financial relief. For immediate relief, 1 month of mortgage payments can be skipped through RBC’s Skip a Payment option. For some of you, this may have always been an option, but now, this is an option for all RBC Mortgage Holders. Please note that this monthly payment does not mean that the payment simply disappears. Keep in mind that the interest from the skipped payment would get added back on to your principal balance outstanding. However, this payment can be made up anytime during the term of the mortgage.
For Longer-Term financial relief, RBC is assessing customers on a case-by-case basis, but deferrals of up to 6 months of mortgage payments may be available.
ATB has made a statement that personal banking customers can apply for a deferral on their ATB loans, lines of credit and mortgages for up to 6 months.
For borrowers utilizing non primary lenders, there is material assistance available as well. Tangerine Bank for instance is offering the same incentive to its existing consumer base as RBC and ATB. The main qualifying criteria is demonstrating financial hardship faced, which is a key consideration for many of the other alternative lenders.
While it is only meant to increase short-term cash flow, the option to defer payments will assist your family as we all brace to join together and push through these unprecedented times.
Steve Dimic
If you have any additional inquiries regarding any of the topics or if you have ideas for future topics, please feel free to email me at [email protected]