Mortgage Deferral Question?

[homer]

Hello!

I was wondering if anyone has made any inquiries? I looked on my banks website and it's a bit vague? I wanted to know how you set the terms, meaning, if I only wanted to defer 2 payments (pay weekly)? They say up to 6 months, but are they set terms?? Sent an e-mail but haven't heard anything yet, as I am sure they are busy. Thanks

 

[Butler1000]

Get your mortgage broker on the phone if you can
Set out what you would like to do. Its always better that way.

Then get the emails happening to document.

 

[eyenomad2]

Hello!

I was wondering if anyone has made any inquiries? I looked on my banks website and it's a bit vague? I wanted to know how you set the terms, meaning, if I only wanted to defer 2 payments (pay weekly)? They say up to 6 months, but are they set terms?? Sent an e-mail but haven't heard anything yet, as I am sure they are busy. Thanks

There should be a link on your bank's website for COVID-19 - use it to complete the online form. Emails may not get returned for weeks. Go for the full 6 month deferral. This plandemic is going to last a while. Best to maintain high cash flow.

 

[eyenomad2]

By the way, I got the 6 month deferral through ScotiaBank - using their online COVID-19 form. No one called me. I simply got an email stating I was granted the 6 month deferral. Remember, the banks have very easy access to money. Time to share the wealth in a crisis.

 

[FlorenceYi]

GREAT thread. Following.

 

[homer]

By the way, I got the 6 month deferral through ScotiaBank - using their online COVID-19 form. No one called me. I simply got an email stating I was granted the 6 month deferral. Remember, the banks have very easy access to money. Time to share the wealth in a crisis.

Just wondering if you were able to customize the deferral length? I hope to not be looking at the full 6 months. Thanks

 

[Samranchoi]

Lenders (Banks and mortgage only lenders) are receiving a huge amount of calls/emails/requests (google: “Your Lender Name” COVID 19 and most if not all have an online form to complete or contact email address or phone number) daily from customers who are looking to defer their mortgage payments and have guidelines they are following, and not all requests for payment deferrals are being approved. The most important thing individuals have to realize is that lenders are not offering "payment or interest forgiveness". You are still responsible for your payments and accrued interest if lenders agree to temporarily defer your payments, which is currently 1 to 6 months. With the amount of inquiries lenders are receiving, you may have difficulty actually speaking with someone right away but keep trying, especially if you are not able to make your next mortgage payment because if your mortgage is not flagged in their system, the late payment may show up on your credit bureau. Lenders are able to avoid this from occurring so discuss this with them as well. Based upon my experience, be prepared when you approach your lender and contact them.
Some things you should do or prepare when contacting your lender:
1. While your name is important, ensure you have your mortgage statement at it will have all the information the lender may require, including your name, address and mortgage number. Due to privacy policies, lender will not discuss specific products with non-clients (including mortgage brokers)
2. Let them know what you want - full or partial payment deferral and for how long.
3. Provide the reason why you are requesting mortgage payment deferral. Could be for the following reasons:
i) loss of employment income ii) reduced income/hours iii) loss of rental income iv) self-employed-business closure or reduced income. Do not focus on other debts if at all possible. Lenders will not/should not pull a new credit bureau. The majority of reasons why individuals are requesting mortgage payment deferrals is due to a reduction in income. If your employer has provided any documentation to confirm loss of employment mention that when speaking with your lender (ie; Record of Employment or letter confirming temporary or permanent lay-off).
4. They may ask if you have any additional savings. You can say you do but indicate you require for every day expenses since government benefits are not enough to replace the income lost.
5. Mention that you have or will be applying for whatever government benefits are available. Lenders want to know you have a plan in place in receiving income from non-employment sources.
6. If the mortgage is for a rental property, let the lender know that the tenant is not able to pay their rent but that you have discussed with them and they will be applying for government benefits.
7. If you are on weekly, bi-weekly or semi-monthly payments, consider changing temporarily to monthly payments for easier budgeting.
8. If you are in a variable rate mortgage, ask if the payment can be lowered to account for the lower rate since Prime at some lenders is 1% to 1.50% lower than they were a few weeks ago.
If you are approved for mortgage payment deferral, expect an initial 1 or 2 month deferral as the lender may want to re-evaluate your situation at a later date. Even if you have had payment issues or previous deferrals in the past, you can still be granted payment deferrals during this time but it is up to the lender, not the government. Not every request will be approved and lenders will require information relevant to them in order to make a decision.

 

[eyenomad2]

Just wondering if you were able to customize the deferral length? I hope to not be looking at the full 6 months. Thanks

I didn’t ask. Just went for the max.

 

[farquhar]

I didn’t ask. Just went for the max.

Banks have modified their policies....BMO, as an example, will defer payments on any loan product for up to six months; the only requirement is that the loan product is not already in arrears.

All the major Banks will drop the Credit Card Interest from 19.99% to 10.99% as well; as you said, it's time to share the wealth a bit.

 

[|2 /-\ | /|/]

What does this mean for hyperinflation.

When is this expected to take affect?

 

[drewstar]

To my understanding, this is a last resort because it has

1. Interest
2. Lowered credit rating

 

[NRMS9]

To my understanding, this is a last resort because it has

1. Interest
2. Lowered credit rating

I was on call with my bank employee who called me after I booked this request online.
1. Interest from the amount you will not pay will be added to your principle, which she calculated and was not so much considering my original amount.
2. No, there will be no effect on credit, as it's internal bank process and they will not report to credit burro, I was told by her

 

[drewstar]

I was on call with my bank employee who called me after I booked this request online.
1. Interest from the amount you will not pay will be added to your principle, which she calculated and was not so much considering my original amount.
2. No, there will be no effect on credit, as it's internal bank process and they will not report to credit burro, I was told by her

I stand corrected, but regardless a deferral is not preferred unless necessary. Cheers

 

[homer]

Heard from my lender today. I inquired online, and they chose to defer my mortgage for 3 months. Not sure how they arrived at that number, but this is what they told me. I asked if I could shorten it to just one month, and they said to fill out an online request form and it should be done. I have to say it was pretty painless. I did end up calling them though, and was on hold for approx 45 minutes, but it was worth the time to talk to someone.

 

[RichardG2020]

Most of the banks already offer a ‘Skip a payment’ option, which is essentially a mortgage payment deferral.

Financial advisers say to never do this, because the interest is still calculated, and then when it’s amortized over the life of your mortgage, you end up paying a lot more in interest costs.

As such, if you can afford to keep making your mortgage payments, continue to do so to avoid paying more interest.

However, if you are cash strapped due to the COVID-19 situation, you gotta do what you gotta do.

 

[wigglee]

Most of the banks already offer a ‘Skip a payment’ option, which is essentially a mortgage payment deferral.

Financial advisers say to never do this, because the interest is still calculated, and then when it’s amortized over the life of your mortgage, you end up paying a lot more in interest costs.

As such, if you can afford to keep making your mortgage payments, continue to do so to avoid paying more interest.

However, if you are cash strapped due to the COVID-19 situation, you gotta do what you gotta do.

the government should use emergency measures to force the banks to share in the pain instead of letting them profit from increases in interest due to lengthening the term. Of course due to their greed, increased bankruptcies will eventually hurt them, but this could have all been avoided by interest free deferrals and rent forgiveness for persons and businesses affected by the virus. Then the government could limit the handouts to just cover food and basic necessities ( less deficit, less evictions, less bankruptcies)

 

[RichardG2020]

the government should use emergency measures to force the banks to share in the pain instead of letting them profit from increases in interest due to lengthening the term. Of course due to their greed, increased bankruptcies will eventually hurt them, but this could have all been avoided by interest free deferrals and rent forgiveness for persons and businesses affected by the virus. Then the government could limit the handouts to just cover food and basic necessities ( less deficit, less evictions, less bankruptcies)

You’re absolutely right, but the optics look good for the banks. “Hey, you want to defer your mortgage payments? Sure, how about for 6 months? Be my guest.” I reached out to my local MP, and they just gave me some lip service about looking into it. FFS - everybody has to suffer a little bit during this crisis. The banks should not be profiting from this worldwide crisis. They make billions in profits, you think they could sacrifice a little bit to help out the average Canadian.

 

[fall]

By the way, I got the 6 month deferral through ScotiaBank - using their online COVID-19 form. No one called me. I simply got an email stating I was granted the 6 month deferral. Remember, the banks have very easy access to money. Time to share the wealth in a crisis.

And what deferral has to do with wealth sharing?

 

[fall]

the government should use emergency measures to force the banks to share in the pain instead of letting them profit from increases in interest due to lengthening the term. Of course due to their greed, increased bankruptcies will eventually hurt them, but this could have all been avoided by interest free deferrals and rent forgiveness for persons and businesses affected by the virus. Then the government could limit the handouts to just cover food and basic necessities ( less deficit, less evictions, less bankruptcies)

Also, to share the wealth, let's tax 50% of all money on any checking and saving accounts and divide them among all Canadians. Hell, let's take all homeowners whose house value is more than their mortgage and increase their mortgage amount by half of that difference and divide that funds among all Canadians. Any other idea of forced wealth sharing (a.k.a expropriation)?

 

[wigglee]

Also, to share the wealth, let's tax 50% of all money on any checking and saving accounts and divide them among all Canadians. Hell, let's take all homeowners whose house value is more than their mortgage and increase their mortgage amount by half of that difference and divide that funds among all Canadians. Any other idea of forced wealth sharing (a.k.a expropriation)?

Even Republicans are supporting the socialist bailouts, so what is your solution?