Back to: April 2020


What is Mortgage Payment Deferral?
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The Coronavirus crisis has left many homeowners in Canada without a job or with reduced hours and wondering how to pay their mortgage. Homeowners facing financial stress may be eligible for a mortgage payment deferral up to 6 months to help ease the financial burden.

The COVID-19 Mortgage Payment Deferral program will be ongoing. You can apply at any time during this outbreak.

What is mortgage payment deferral?
Mortgage payment deferrals can help you during times of financial hardship — like unemployment or reduced employment due to the Coronavirus (COVID-19) outbreak.

The deferral is an agreement between you and your lender. Typically, the agreement indicates that you and your lender have agreed to pause or suspend your mortgage payments for a certain amount of time. It’s also known as a mortgage payment deferral agreement or mortgage forbearance agreement and it’s a temporary measure.

After the agreement ends, your mortgage payments return to normal and the missed payments — including principal and accumulated interest - repaid.

How mortgage payment deferrals can help you?
A mortgage deferral helps you when you’re struggling to make your payments by allowing you to skip your mortgage payment for a specified amount of time.

Are the deferred payments erased or canceled?
The mortgage deferral agreement does not cancel, erase or eliminate the amount owed on your mortgage. At the end of the agreement, you will have to resume payment according to your regular payment schedule.

NOTE: The interest that hasn’t been paid during the deferral period continues to be added to the outstanding principal of your mortgage. This can affect the total amount you owe in accordance with the original payment schedule.

Do I need to repay the deferred amounts?
Yes, you’ll need to repay the amounts of the skipped payments including both principal and interest.

How do I repay the deferred amounts?
Details of the repayment will vary according to the specific lender and situation.

The interest on your mortgage that hasn’t been paid during the deferral period continues to be added to the outstanding principal of your mortgage. When your payments start again, your mortgage payment might be based on the total amount you then owe to pay off your mortgage in accordance with the original payment schedule.

IMPORTANT: Mortgage payment deferrals focus solely on your mortgage. It won’t affect other payments regularly withdrawn, like property taxes and life/disability insurance.

How do I know if I am eligible for a mortgage payment deferral?
Your lender — your bank or your mortgage professional — can tell you if you are eligible for a mortgage payment deferral.

Is CMHC helping with mortgage deferrals?
Yes, with the COVID-19 outbreak, we are allowing lenders to offer deferred payments for insured mortgages.

All mortgage insurers offer a number of tools to lenders that can help you when you’re in financial difficulty and are struggling to meet your mortgage obligations.

What if my mortgage isn’t CMHC-insured?
Any borrower facing financial difficulty should contact their lender — your bank or mortgage professional — to learn what options are available.

What are my options?
The payment deferral is for people who will struggle to make their next mortgage payment. If you are in a position to make your payments, you should.

If — at any point in this crisis — you think you won’t be able to make your regular mortgage payment, it’s important for you to take quick action. Contact your bank or mortgage professional immediately before you miss a payment.

 

Source: Canada Mortgage and Housing Corporation

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With Compliments of

Michele Vyge-Fraser
Real Estate Agent/ Associate Broker/ CNE®


Red Door Realty
1314 Martello Road
Chapter House
Halifax, Nova Scotia,
T: 902-830-6397
NovaScotiaRealEstate@gmail.com
www.RedDoorRealty.ca

Happy New Year!



Hello 2021! 


May this year be full of restored light, new possibilities and better times ahead. How lucky are we to live in Nova Scotia where it continues to be a 'beacon of light' for so many people near and far. Our real estate market continues to validate all of the years of hard work and vision of so many including our extraordinary public and private sectors and our wonderfully diverse growing communities, towns and cities. The sellers market is still very strong with good listings in short supply across the province.  According to our Canadian Real Estate Association (CREA), in all of 2020, home sales totalled a record 13,923 units in Nova Scotia. This was an increase of 13% from the same period in 2019 and marked the highest level of any year in our history, beating the previous record set in 2019 by more than 1,500 sales. The annual average price, across the province, was $291,224. up 13.8% compared to 2019. In HRM, Halifax-Dartmouth, there were 7,591 residential 2020 sales (approximately 55% of the provincial sales) with the average selling price having increased 14.6% to $369,435. 


The big question is 'will this continue'? Despite the conflicting opinions, I believe it will. The pandemic, in my opinion, added more fuel to our already prime seller market conditions. Nova Scotia has been on many people's radar and wish list for years but especially in recent years as the demographics shift. Logically it makes sense from an affordability point of view but I believe there is more to the story. Maybe the golden rule of real estate; 'location, location, location'  should be changed to say 'lifestyle location, lifestyle location, lifestyle location' to better describe what seems to be motivating buyers. And than there is the '18 hour city' concept talked about i.e. in an article by Ainsley Smith on TorontoStoreys.com... 


'... With remote working making it possible for more people to live in the suburbs, the report points to an “18-hour city” trend to pick up across Canada, whether in larger city centres like Toronto and Montreal or in places like Victoria, Quebec City, and Halifax due to accelerated growth. According to Investopedia, 18-hour cities “describe a mid-size city with attractive amenities, higher-than-average population growth, and a lower cost of living and cost of doing business than the biggest urban areas.' 


What's really in our future? As the old saying goes... time will tell. 


As always, please contact me anytime to confidentially and confidently discuss your real estate ideas and potential goals. 


Wishing you all the best for 2021!


~ Michele 


Michele Vyge-Fraser 

Red Door Realty Agent/Associate Broker 

 


Sources: 

https://creastats.crea.ca/board/nsar?fbclid=IwAR3XtGZakyyor15ow-uZoME60AIGFgJ5lYdfueoxEV_le5OOuxLABptAcAA


https://torontostoreys.com/canadian-real-estate-trends-2021/



NATIONAL MORTGAGE RATES
Term Posted
Rates*
Best
Rates*
6 Months 3.34% 3.30%
1 Year 3.59% 3.04%
2 Years 3.74% 2.89%
3 Years 3.89% 2.79%
4 Years 3.95% 2.95%
5 Years 5.34% 2.69%
7 Years 5.80% 2.99%
10 Years 6.10% 3.04%
Variable Rate 2.90%
Prime Rate ** 3.95%
*last updated: Feb 18,2020


www.RedDoorRealty.ca

Halifax Mortgage Specialist Bruce Lusby 

(902) 210-0515

http://mortgageweb.ca/BruceLusby

Halifax, Nova Scotia - updated Oct 6, 2015

Variable:

5yr @ Prime - .65% (2.05%)

HELOC @ Prime +.25% (2.95%)

Fixed:
1yr 2.29%
2yr 2.09%
3yr 2.24%
4yr 2.54%
5yr 2.54%
6yr 3.39%
7yr 3.44%
10yr 3.84%

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The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice. If your property is currently listed with a Real Estate Broker, this publication is not intended as a solicitation.