COVID-19 Mortgage Payment Relief: What’s Available to You

[roopi]

100% interest will accrue. The skip payment option currently built into mortgages the interest still accrues so with a deferral it will be the same.

[Misterman]

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Aside from the additional interest, how would people get "screwed over" by this?

Well the way it went down with some of the Fort Mac people that took these options, is they were told they would have a payment vacation and their mortgage would just extend by a few months. Fine print said something else and people ended up having their credit fucked by being reported to credit bureau as a non payment.

[sabad66]

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In most situations it will be interest still adding up and they add to the end of the term or they take the 6 months payments and split them and add it onto your monthly payments. It's on a case by case basis with your bank so if you want to do this call them and ask the options. I'm considering doing this and putting 6 months of mortgage payments into the market and it's costing me 2.05% in interest.

This is not a bad idea actually. I wonder if you have to “prove” you are broke and can’t afford the payments or are they just allowing this for everyone with little questions asked?

[arcticcat522]

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This is not a bad idea actually. I wonder if you have to “prove” you are broke and can’t afford the payments or are they just allowing this for everyone with little questions asked?

Even better if you are deferring on a rental, since you can claim the interest at tax time.

[ercchry]

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This is not a bad idea actually. I wonder if you have to “prove” you are broke and can’t afford the payments or are they just allowing this for everyone with little questions asked?

We require proof, hence the “case by case” thing... but we’re also not a big bank

[Disoblige]

I think it is very obvious by how this news is presented to not take this deferral at much as possible because the potential headaches are not worth it at all.

It kind of works out in the end anyways because only those who truly absolutely need the deferral will apply for it, as intended.

[revelations]

This was posted in r/personalfinancecanada

The feedback I got was that this measure is intended for actual financial hardship and banks would screen people accordingly (proof of unemployment).You may just tie up a phone like for nothing. In other similar threads, people pointed out that the interest accrued would both increase your monthly payment in the future, and may surpass any market gains. Some other people have suggested elsewhere that declaring financial hardship to the bank may impact you during future refinancing. Overall, either not possible or detrimental.

https://www.reddit.com/r/PersonalFin...mers/?sort=top

I am a broker and what I have heard is that it is only available to people who have lost their job and have no means of paying next months payment.

With most people having lost their job in the last week and a pay cheque coming in I think it will more likely be next month that people will be eligible.

The phone lines are tied up from too many people that are still working calling in to ask about the program.

The only people I know that have are those whose lenders are offering an online skip a payment option.

[ExtraSlow]

What if you are a landlord and your renters move or die because of virus? That seems pretty legitimate.

[ercchry]

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What if you are a landlord and your renters move or die because of virus? That seems pretty legitimate.

Well then half of them will also have to explain why a renter is in what should be an owner occupied home

[arcticcat522]

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Well then half of them will also have to explain why a renter is in what should be an owner occupied home

What about the half who have told the mortgage company it's a rental? Anything for them?

[gwill]

I'm apart of a few landlord groups and the deferring of payments is all over the place. Some got the deferral even though their working while others have been outright denied if it was a rental property. Seen a bank deny one person while deferring another.

I'm sure some of the landlords need it while many are just deferring to free up capital now.

What's not clear is how each bank is dealing with the deferral when it comes to the payments you'll end up with down the road.

The reddit posts are pure speculation not based on much it seems.

[CompletelyNumb]

Can someone clear up the math behind deferred payments for me? I've had some people sternly disagree with me about accrued interest. It seems many people are under the impression that deferring a payment now just adds the same payment to the end of your term. So at the end of your mortgage, the total # of payments, and the amount of those payments will add up the same. I thought that was incorrect, but I don't know enough to die on that hill

[flipstah]

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Can someone clear up the math behind deferred payments for me? I've had some people sternly disagree with me about accrued interest. It seems many people are under the impression that deferring a payment now just adds the same payment to the end of your term. So at the end of your mortgage, the total # of payments, and the amount of those payments will add up the same. I thought that was incorrect, but I don't know enough to die on that hill

When I read my TD 'Payment Vacation' option, that I kept getting calls that I can use them and 'why waste them?', is that when you restart it, whatever you deferred, you have to pay it in full when you restart it.

Interest accumulation is same-same; just a lot at one transaction. Unless it's compounded...?

The balloon payment was enough deterrent for me to continue reading.

[ercchry]

Completely up to the lenders to structure it how they want is what I am seeing. The important thing to remember is they will somehow get every cent owed... probably a couple extra too at the end of the day, with fees or with higher loan amounts at renewal or both!

[gwill]

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Can someone clear up the math behind deferred payments for me? I've had some people sternly disagree with me about accrued interest. It seems many people are under the impression that deferring a payment now just adds the same payment to the end of your term. So at the end of your mortgage, the total # of payments, and the amount of those payments will add up the same. I thought that was incorrect, but I don't know enough to die on that hill

wouldnt it be nice if there was a mortgage broker around here to help answer some basic questions for everyone. Seems most people have no clue on the basics of deferring.

It's been a week since I've emailed my branch/advisor to renew my one mortgage and no response. I'm too lazy to wait on hold to get some questions answered.

[ExtraSlow]

It does appear that every lender is treating this differently, so the mortgage professionals that have posted have accurately said that they can't make blanket statements to "clear things up" because they don't apply to everyone.

I will say my mortgage broker has been very responsive, and if your bank is putting you on hold, maybe call someone else about your renewal.

[ercchry]

If people are wanting a broker to deal with this for them remember that the lender will not be able to disclose anything to a broker without you signing a lender specific consent form

[roopi]

Consumers could face hit to credit scores, jump in payments from mortgage deferrals
https://www.cbc.ca/news/business/mor...card-1.5505704

[ercchry]

Here is as much as well... anyone knows really. Direct from a well known monoline lender’s BDM, sent to brokers to help answer some questions:

With all the uncertainty surrounding Covid-19, many borrowers are concerned as to their financial resources, and are inquiring with their lenders as to options.
I am hoping that this email will provide a little clarity as to the procedures.
You will notice that I am not stating exactly what the client can expect as far as number of payments they can defer, as each request is being reviewed case by case, and options will vary.
Lender options are also changing, based on individual information provided, and ongoing changes to government programs.

Are you in Distress at this moment?
These programs are established to help those in need of “immediate” relief. If you are not in immediate need, please do not contact your lender at this time.
The number of inquiries are simply staggering at this time, and all your lenders are attempting to respond, “but it will take time.”
We ask that “only” those who absolutely need immediate assistance, contact their lenders.
“Please” be patient. The number of calls are unprecedented and it will take time for the lenders to respond to them all.

For those of you not in distress, please hold off contacting the lenders and allow them to attend to those most in need.

Be prepared to provide information:
Your lender will require information about the following: Please gather this information prior to contacting your lender
-your current employment status and details
-your current assets / debts, and applicable payments
-the more information your provide, the better your lenders will be able to make an “informed” decision.

Lenders cannot assist you in deferring Property taxes, or Insurance payments
-contact your municipality or insurance company concerning these payments. They may have programs available as well.

Be Patient / Be Patient / Be Patient
-As you will hear over and over again; these are unprecedented times.
-We all must have patience, be understanding, and be prepared
-We are all in this together.

Clear as mud? Great

[Asian_defender]

Tried to get ahold of TD today, they have added an option to their IVR but if you select that option it hangs up on you lol
Good work TD