Key points for individuals:
- Mortgage support
Canadian banks have committed to work with their customers on a case-by-case basis to find solutions to help them manage hardships caused by COVID-19. Canadians who are impacted by COVID-19 and experiencing financial hardship as a result should contact their financial institution regarding flexibility for a mortgage deferral. This allows flexibility to be available − when needed − to those who need it the most.
The Canada Mortgage and Housing Corporation and other mortgage insurers offer tools to lenders that can assist homeowners who may be experiencing financial difficulty. These include payment deferral, loan re-amortization, capitalization of outstanding interest arrears and other eligible expenses, and special payment arrangements.
- Canada’s mortgage insurers are committed to providing homeowners with solutions to mitigate temporary financial hardship related to COVID-19. This includes permitting lenders to defer up to six monthly mortgage payments (interest and principal) for impacted borrowers. Deferred payments are added to the outstanding principal balance and subsequently repaid throughout the life of the mortgage.
- Learn more: Financial Consumer Agency of Canada (FCAC)
British Columbians needing more time to pay their bills can apply to existing payment deferral programs at ICBC and BC Hydro. ICBC is extending deferrals to up to 90 days. People dealing with job loss, illness or loss of wages due to COVID-19 may also qualify for BC Hydro’s Customer Crisis Fund grant program for up to $600.
Mortgage Deferrals: It is important to note that all mortgage deferral programs are offered at the discretion of the lender and each lender has its own policies with regard to this. Typically true financial hardship must be demonstrated, and it is important to keep in mind that a deferred mortgage payment is for the mortgage amount only (not property tax installments and insurance premiums that may come from your bank account out at the same time). Visit your lender’s website for specific information and applications for possible mortgage deferrals.
COVID 19 Mortgage Information from Rate Hub: https://www.ratehub.ca/blog/covid-19-and-your-mortgage/