COVID 19 Mortgage Relief

I have had several calls regarding the initiative that the Federal Government announced on March 18, 2020, regarding mortgages.

“The Government, through CMHC, is providing increased flexibility for homeowners facing financial difficulties to defer mortgage payments on homeowner CMHC-insured mortgage loans. CMHC will permit lenders to allow payment deferral beginning immediately.”

The misunderstanding is that there is a deferral, which simply means that the interest clock keeps ticking. For the most part, the largest portion of our mortgage payment is normally the interest portion. If you make no payments for 6 months the interest for those 6 months will be added to the amount outstanding on the mortgage. When the time comes at renewal be aware that the interest for the 6 months will be added to the amount owing to the institution.