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Lenders offering mortgage deferrals in wake of COVID-19 crisis.

The current COVID-19 situation is a health crisis to be sure, but it is also an economic one. The markets have taken a severe beating in the last couple of weeks, and with many small businesses being forced to close their doors in this time of self-isolation, it is likely that some of these businesses will not survive and that many Canadians will lose their employment as a result. 

But Governments and business alike are stepping up to the plate to provide relief. The big banks of Canada, along with several other lenders have recently offered a mortgage deferral program of up to six months. The hope is that this will help homeowners who are the most economically affected by the COVID-19 crisis and keep them in their homes until they are once again able to make their payments.

What to do if you need to defer your mortgage?

If you are struggling financially as a result of the economic damage that has been done by the COVID-19 virus, you should contact your lender or your mortgage broker to see whether they are participating in the mortgage deferral offer. 

Keep in mind however, that this program is intended only for those who need the assistance. Also keep in mind, that it is a payment deferral only. You will still have to make the payments eventually, so if you are in a position where you can still pay your bills, you are better to continue paying as normal. 

What other effects is COVID-19 having on the mortgage industry? 

Perhaps the biggest effect that the COVID-19 crisis is having is that the Bank of Canada has again lowered interest rates. This means that for some mortgage holders, it may be a good time to refinance – particularly if you have other higher interest debt that you wish to consolidate. 

Refinancing your mortgage at a time of low interest rates in order to consolidate debt, can save you thousands of dollars and help you to get out of debt years sooner. 

Contact Matrix Mortgage Global today!

If you would like to speak to one of our brokers about the effect that COVID-19 is having on the mortgage industry; or if you would like to learn more about deferring your mortgage payments or about mortgage refinancing, contact Matrix Mortgage Global today. 

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