Kofsky Mortgage

All About Mortgage Payment Deferrals and Mortgage Relief

Over the past few days, there has been a lot of questions around the relief from insurers and lenders. At this point it is still fairly grey in what has come forward however I have outlined what we know so far. One thing that is important to know is that there is no precedent for this and everyone is really trying their best to get everything organized and keep everyone informed. 

First off, there has been lots of information and misinformation about the Mortgage Payment Deferral. At this stage I think it is important to explain what is the mortgage deferral and what does it actually mean.

So… What is a Mortgage Payment Deferral?
In a nutshell, your mortgage payment is delayed and the interest is added to your mortgage.

Banks and other lenders will be working with their clients to cope with the current situation of COVID-19. For Canada’s big 6 banks, they have stated that they would allow mortgage deferrals for up to 6 months.

Other national lenders (First National, RMG, MCAP etc.) and most Credit Unions, are also allowing clients to miss/skip payments or defer payments as well.

All the lenders are all saying that the payment deferrals are decided on a case-by-case basis.

It is important to know that if you decide to defer your mortgage payments, the lender will take the interest that would have been paid and then add it to your monthly mortgage balance. That interest will then be compounded. Either your monthly payment after the deferrals will be larger or at the end of your term, the mortgage balance will be larger as you haven’t paid as much of your principal and your total mortgage balance is now larger.

Is it the right thing for me to do?

If you are not in need, do not defer. As I mentioned earlier, the lender will take your deferred payment and add it to your balance. Therefore you will pay more interest throughout the life of the mortgage.

However, if you do need some financial support and need to defer. You will need to connect with your lender (Lender information below). Further, if you get permission from your lender there should be no harm done to your credit score.

Lender Information

Blueshore Financial:
Phone: 1.888.713.6728

BMO:
Phone: 1-877-788-1923

CIBC:
Phone: 1-877-454-9030

CMLS:
Phone: 1.888.995.2657, selection 4

Coast Capital:
Phone: 1.888.517.7000

First National:
Phone: 1.866.557.5509

MCAP:
Phone: 1.800.265.2624

RFA (Formerly Street Capital):
Phone: 647.259.7873 or 1.877.416.7873

RBC:
Just visit a branch

RMG:
Phone: 1.866.809.5800

Scotiabank:
Phone: 1.800.4.SCOTIA
OR visit a branch 

TD:
Phone: 1-888-720-0075
OR visit a branch

Westminster Savings:
Phone: 604.517.0100

Other ways a broker can help

Unfortunately, lenders do not allow brokers to help with payment deferrals. However, depending on your lender there may be other options available to you, such as:

  • Re-amortization of the loan
  • Restructure mortgage
  • Refinance of your mortgage
  • Other special payment arrangements

Also, if your mortgage is insured, CMHC, Canada Guaranty, and Genworth have assistance programs to help their lenders and you in these times.

If this all seems a bit confusing and you need some help, please feel free to connect with me anytime. My number is 604-202-9913, I am happy to help.

Jordan Kofsky
604-202-9913
kofsky.jordan@citywidemortgage.ca

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