Mortgages During COVID-19
Silverman Mortgage has provided this page to better serve all our clients with information during this unsettling time. We have gathered as much info as we can so that our clients and the public are aware of what mortgage related resources there are available to you at this time.
We will continue to update as lenders provide us information and we collect helpful resources.
Please remember that these are challenging times for not only customers but for the lenders themselves. We are all working extremely hard to try to provide all clients with first class service and to help those borrowers who are being adversely impacted by COVID-19. It may take you a significant amount of time to reach a customer service representative at your particular lender, so when you do finally get a live person on the other end of the phone, remember that they are doing their best in difficult times and treat them with the respect they deserve.
General Info about Deferred Mortgage Payment Programs
General Info about Deferred Mortgage Payment Programs
1. Deferred mortgage payments are discretionary.
Lenders maintain the legal right to timely repayment of their mortgages and mortgage payment deferral programs are offered at their sole discretion and each lender has different policies on how they handle these requests. Note: These programs are generally restricted to ‘Institutional” lenders only. Private mortgages do not qualify.
2. No lender is going to forgive your mortgage payment.
A deferred payment program allows you to roll a defined number of mortgage payments into your mortgage, however you are still expected to ultimately pay all of the money you owe, with interest.
3. True financial hardship must be demonstrated.
These programs are for customers who are genuinely struggling to make their next mortgage payment. They may have lost their job(s) and/or a portion of their income, and they do not have the cash reserves necessary to draw on. If you are not in this group, you are not likely to be eligible. However, if you do make the decision to request a payment deferral, please be prepared to submit a detailed breakdown of your personal assets, current income and expenses.
4. If you do not currently fall into this distressed category, please do not call your lender at this time.
Lender phone lines are overloaded right now with many of the calls being from customers who are worried but are not in a situation as per # 3 above. If you are still receiving your normal income and have enough money to make your next mortgage payment, please delay a call to your lender until you are in that situation. Or better yet contact the mortgage professional that you originally worked with when you obtained your mortgage. They will be happy to review all of your options with you!
5. Deferring mortgage payments will not hurt your credit score.
A lender-approved deferment is not a missed payment–and it will not appear on your credit bureau report as such. Lenders are also typically offering to waive any fees associated with these types of programs during the COVID-19 crisis.
6. Deferred Payment Programs are typically capped at six months.
Deferring the first payment will be easier than deferring the second one, and so on. Right now, six months is about the longest deferment you should expect to receive, but no lenders will do this all at once. Most of them will require that you reach out with a request for each individual payment that you are going to miss.
Deferring the first payment will be easier than deferring the second one, and so on. Right now, six months is about the longest deferment you should expect to receive, but no lenders will do this all at once. Most of them will require that you reach out with a request for each individual payment that you are going to miss.
7. Communication is the key. If you are going to miss your mortgage payment, contact your lender first!
Be honest with them about your circumstances and have a plan for how you are going to get back on track. If you are about to miss a payment and cannot get through on the phone lines, send your lender an email. Lenders may waive NSF fees if you miss a payment but can demonstrate to them that you attempted to notify them in advance.
8. A mortgage deferred payment program is for your mortgage payment only.
Property tax installments and insurance premiums are entirely separate from these programs and must continue to be paid. If municipalities and insurance companies offer similar programs (which most municipalities are currently doing), they should be contacted separately.
9. Other options may be available.
In addition to rolling missed payments back into your mortgage for a specified period of time, lenders also have the ability to refinance your mortgage to pay out other debt (subject to qualification), restore your original amortization (which lowers your payment amount), hold a payment (during a temporary suspension of income), or offer you a reduced payment for a specific time. We recommend that you contact your mortgage professional to review these other options. Note: Interest-only payments are usually not available under these programs.
10. Rental property investors may also be eligible.
Property investors with tenants who have stopped making their rent payments will also be considered, however they will be assessed by the same rigorous standards as noted in # 3 above. Note: Some provincial governments have introduced tenant relief programs. Rental-property owners can also encourage their tenants who have been adversely impacted by COVID-19 to apply for these programs if available.
Other Considerations
Other Considerations
Review Your Current Mortgage
If you are looking to refinance, renew, access equity or just review your current mortgage, please reach out to us, we'd be happy to review your current situation and help in any way we can.
Other Home Owner Resources
Lender Info & Resources
Lender Info & Resources
B2B Bank
Have provided a webpage to guide their clients with info in various areas of banking including mortgage support.
https://b2bbank.com/covid19#Mortgages
https://b2bbank.com/covid19#Mortgages
*If mortgage is due within 7 days call 1-800-263-8349. If not, please use the other support options provided on their site.
CMHC ~ Genworth ~ Canada Guaranty
(Insured Mortgages)
If you have an insured mortgage with Genworth, CMHC or Canada Guaranty, you can work directly with your lender on payment deferral plan options. They have implemented measures to work with your lender as an insured mortgage on the deferral program, you are required to request & make contact directly with your bank or lender on applying for and executing the payment deferral plan options is the implemented protocol they've put in place. For more information, click here.
(Insured Mortgages)
If you have an insured mortgage with Genworth, CMHC or Canada Guaranty, you can work directly with your lender on payment deferral plan options. They have implemented measures to work with your lender as an insured mortgage on the deferral program, you are required to request & make contact directly with your bank or lender on applying for and executing the payment deferral plan options is the implemented protocol they've put in place. For more information, click here.
CMLS
CMLS is providing their customers with continued updated information directly on their website.
https://www.cmls.ca/covid-19-response.
For existing residential mortgages their contact information is as follows:
1.888.995.2657 service@cmls.ca
1.888.995.2657 service@cmls.ca
Equitable
You may contact their mortgage services directly at 1-888-334-3313 or email
customerservice@eqbank.ca.
First National
Update page for FN Residential Clients
1.866.557.5509
Update page for FN Residential Clients
1.866.557.5509
MCAP
Given recent global events, MCAP
understands that these may be difficult times for its homeowners. In order to provide some assistance, MCAP wishes to highlight that under the terms of your mortgage, you may skip a payment or hold a payment at any time subject to certain conditions. Under the terms of MCAP’s Skip a Payment* Program, MCAP homeowners may skip a payment at any time. For the Hold a Payment* Program, a payment may be deferred for a specified period of time. Should you elect to skip or hold a payment, MCAP will waive any applicable fees and this will not impact your credit rating.
The foregoing is applicable to any MCAP and RMG branded mortgages.
If you have any questions or would like to know more
please click here.
National Bank of Canada
Have their own updated information and how to contact them directly on their website at https://www.nbc.ca/personal/notice.html.
RFA (Street Capital)
We join Canadians across the country in expressing our concern for those directly impacted by COVID-19. We understand that some borrowers may be experiencing financial hardship and we’re committed to working with you through these difficult times.
Under the terms of your
RFA mortgage,
there may be options available to assist you. Please contact us at 1-833-228-5697 to discuss your situation in greater detail.
Select a phone number below based on the first digit of your mortgage number.
Numbers Starting with 4
1.866.939.5005
1.866.325.2563 or 416.593.9343
Numbers Starting with 6
1.877.776.6888
Numbers Starting with 7, 8 or 9
1.833.228.5697
Forgot your mortgage number? Not a customer? No worries—give us a call or email us at:
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MORTGAGE ARTICLES
You’ve most likely heard that there are two certainties in life; death and taxes. Well, as it relates to your mortgage, the single certainty is that you will pay back what you borrow, plus interest. With that said, the frequency of how often you make payments to the lender is somewhat up to you! The following looks at the different types of payment frequencies and how they impact your mortgage. Here are the six payment frequency types Monthly payments – 12 payments per year Semi-Monthly payments – 24 payments per year Bi-weekly payments – 26 payments per year Weekly payments – 52 payments per year Accelerated bi-weekly payments – 26 payments per year Accelerated weekly payments – 52 payments per year Options one through four are straightforward and designed to match your payment frequency with your employer. So if you get paid monthly, it makes sense to arrange your mortgage payments to come out a few days after payday. If you get paid every second Friday, it might make sense to have your mortgage payments match your payday. However, options five and six have that word accelerated before the payment frequency. Accelerated bi-weekly and accelerated weekly payments accelerate how fast you pay down your mortgage. Choosing the accelerated option allows you to lower your overall cost of borrowing on autopilot. Here’s how it works. With the accelerated bi-weekly payment frequency, you make 26 payments in the year. Instead of dividing the total annual payment by 26 payments, you divide the total yearly payment by 24 payments as if you set the payments as semi-monthly. Then you make 26 payments on the bi-weekly frequency at the higher amount. So let’s use a $1000 payment as the example: Monthly payments formula: $1000/1 with 12 payments per year. A payment of $1000 is made once per month for a total of $12,000 paid per year. Semi-monthly formula: $1000/2 with 24 payments per year. A payment of $500 is paid twice per month for a total of $12,000 paid per year. Bi-weekly formula: $1000 x 12 / 26 with 26 payments per year. A payment of $461.54 is made every second week for a total of $12,000 paid per year. Accelerated bi-weekly formula: $1000/2 with 26 payments per year. A payment of $500 is made every second week for a total of $13,000 paid per year. You see, by making the accelerated bi-weekly payments, it’s like you end up making two extra payments each year. By making a higher payment amount, you reduce your mortgage principal, which saves interest on the entire life of your mortgage. The payments for accelerated weekly payments work the same way. It’s just that you’d be making 52 payments a year instead of 26. By choosing an accelerated option for your payment frequency, you lower the overall cost of borrowing by making small extra payments as part of your regular payment schedule. Now, exactly how much you’ll save over the life of your mortgage is hard to nail down. Calculations are hard to do because of the many variables; mortgages come with different amortization periods and terms with varying interest rates along the way. However, an accelerated bi-weekly payment schedule could reduce your amortization by up to three years if maintained throughout the life of your mortgage. If you’d like to look at some of the numbers as they relate to you and your mortgage, please don’t hesitate to connect anytime; it would be a pleasure to work with you.
It’s a commonly held belief that if you’ve made your mortgage payments on time throughout the entirety of your mortgage term, that the lender is somehow obligated to renew your mortgage. The truth is, a lender is never under any obligation to renew your mortgage. When you sign a mortgage contract, the lender draws it up for a defined time, so when that term comes to an end, the lender has every right to call the loan. Now, granted, most lenders are happy to renew your mortgage, but several factors could come into play to prevent this from happening, including the following: You’ve missed mortgage payments over the term. The lender becomes aware that you’ve recently claimed bankruptcy. The lender becomes aware that you’re going through a separation or divorce. The lender becomes aware that you lost your job. Someone on the initial mortgage contract has passed away. The lender no longer likes the economic climate and/or geographic location of your property. The lender is no longer licensed to lend money in Canada. Again, while most lenders are happy to renew your mortgage at the end of the term, you need to understand that they are not under any obligation to do so. So how do you protect yourself? Well, the first plan of action is to get out in front of things. At least 120 days before your mortgage term expires, you should be speaking with an independent mortgage professional to discuss all of your options. By giving yourself this lead time and seeking professional advice, you put yourself in the best position to proactively look at all your options and decide what’s best for you. When assessing your options at the time of renewal, even if the lender offers you a mortgage renewal, staying with your current lender is just one of the options you have. Just because your current lender was the best option when you got your mortgage doesn’t mean they are still the best option this time around. The goal is to assess all your options and choose the one that lowers your overall cost of borrowing. It’s never a good idea to sign a mortgage renewal without looking at all your options. Also, dealing with an independent mortgage professional instead of directly with the lender ensures you have someone working for you, on your team, instead of seeking guidance from someone with the lender’s best interest in mind. So if you have a mortgage that’s up for renewal, whether you’re being offered a renewal or not, the best plan of action is to protect yourself by working with an independent mortgage professional. Please connect anytime; it would be a pleasure to work with you!