Like many Canadians, we are sharing the same thoughts, feelings and emotions as we move forward during these uncertain times. We understand the importance and the need to take this pandemic seriously and hope you and yours are doing what you can to stay safe and healthy. But here we are, approximately a month into these unprecedented times, and although there doesn’t appear to be much optimism on the horizon, the one thing that I keep reminding myself of is…we’re all going to get through this together, and perhaps the most important thing we can all do is…not panic.
During challenging times, financial strain can exist, and wondering how to pay the bills can be of great concern. For most people, having a mortgage represents the largest chunk of their monthly budget. The last thing that anyone wants to see is their mortgage possibly going into default.
So, what can we do? Let’s be proactive. Perhaps that’s where I come in. As a mortgage professional, I am here to assist clients not only during the good times, but through turbulent times as well. Based on your personal situation, I can offer advice and strategies that may not only help you through these trying times, but perhaps position you more favorably once the proverbial storm has passed.
What options do I have?
As we are learning from multiple media sources, there is financial assistance coming from both the provincial and federal levels of Government. At this point, there still seems to be a lot of questions. Who qualifies for what and how much? When will the relief funds be received? Will I have to pay it back? Hopefully these and other questions will be answered sooner rather than later.
The lending institutions are indicating that they are going to work with clients through these stressful times as well. Again…more questions. What is the process involved to defer a payment? How many payments can be deferred? Does this impact my credit rating? What are the repercussions down the road if I do defer payments? Every lender is different, so I recommend that you contact your specific lending institution and ask these questions before making the final decision to defer a payment. If you require a contact number for your existing lender, I can certainly provide this.
If you have significant equity in your home, you may have the option of refinancing your existing mortgage through traditional lenders, or if that doesn’t work, then there may be the option to extract equity through alternative lending providers. Please keep in mind that as a mortgage professional, I have access to a significant number of lending partners, and the costs and interest rates can fluctuate between them. So before picking up the phone and calling one of the “Equity Lenders” that advertise on the television or radio, you might want to find out what other options are available. The cost savings for you could be significant. If your existing mortgage is up for renewal in the next 12 months, there may be the option to transfer it to another lender and possibly take advantage of a lower interest rate and reduce your monthly payment. If you are 55 years of age or older, own your home, and have significant equity in your property, then there may be an opportunity to discuss the benefits of a reverse mortgage.
As I am constantly receiving updates from all of our lending partners, I encourage you to reach out to me with any questions or concerns you may have.
Jason Eldridge B.Admin, PFP Axiom Mortgage Solutions