This page is provided to better serve all my clients with information during this unsettling time. I have gathered as much info as I can so that my clients and the public are aware of what mortgage related resources there are available to you at this time.
I will continue to update as lenders provide additional information and I collect further helpful resources.
Please remember that these are challenging times for not only customers but for the lenders themselves. We are all working extremely hard to try to provide all clients with first class service and to help those borrowers who are being adversely impacted by COVID-19. It may take you a significant amount of time to reach a customer service representative at your particular lender, so when you do finally get a live person on the other end of the phone, remember that they are doing their best in difficult times and treat them with the respect they deserve.
General information relating to Deferred Mortgage Payment Programs
Deferred mortgage payments are discretionary.
Lenders maintain the legal right to timely repayment of their mortgages and mortgage payment deferral programs are offered at their sole discretion and each lender has different policies on how they handle these requests.
Note: These programs are generally restricted to “Institutional” lenders only. Private mortgages do not qualify.
No lender is going to forgive your mortgage payment.
A deferred payment program allows you to roll a defined number of mortgage payments into your mortgage, however you are still expected to ultimately pay all of the money you owe, with interest.
True financial hardship must be demonstrated.
These programs are for customers who are genuinely struggling to make their next mortgage payment. They may have lost their job(s) and/or a portion of their income, and they do not have the cash reserves necessary to draw on. If you are not in this group, you are not likely to be eligible. However, if you do make the decision to request a payment deferral, please be prepared to submit a detailed breakdown of your personal assets, current income and expenses.
If you do not currently fall into this distressed category, please do not call your lender at this time.
Lender phone lines are overloaded right now with many of the calls being from customers who are worried but are not in a situation as per # 3 above. If you are still receiving your normal income and have enough money to make your next mortgage payment, please delay a call to your lender until you are in that situation. Or better yet contact the mortgage professional that you originally worked with when you obtained your mortgage. They will be happy to review all of your options with you!
Deferring mortgage payments should not hurt your credit score.
A lender-approved deferment is not a missed payment—and it should not appear on your credit bureau report as such. Lenders are also typically offering to waive any fees associated with these types of programs during the COVID-19 crisis.
Deferred Payment Programs are typically capped at six months.
Deferring the first payment will be easier than deferring the second one, and so on. Right now, six months is about the longest deferment you should expect to receive, but no lenders will do this all at once. Most of them will require that you reach out with a request for each individual payment that you are going to miss.
Communication is the key.
If you are going to miss your mortgage payment, contact your lender first! Be honest with them about your circumstances and have a plan for how you are going to get back on track. If you are about to miss a payment and cannot get through on the phone lines, send your lender an email. Lenders may waive NSF fees if you miss a payment but can demonstrate to them that you attempted to notify them in advance.
A mortgage deferred payment program is for your mortgage payment only.
Property tax installments and insurance premiums are entirely separate from these programs and must continue to be paid. If municipalities and insurance companies offer similar programs (which most municipalities are currently doing), they should be contacted separately.
Other options may be available.
In addition to rolling missed payments back into your mortgage for a specified period of time, lenders also have the ability to refinance your mortgage to pay out other debt (subject to qualification), restore your original amortization (which lowers your payment amount), hold a payment (during a temporary suspension of income), or offer you a reduced payment for a specific time. We recommend that you contact your mortgage professional to review these other options.
Note: Interest-only payments are usually not available under these programs.
Rental property investors may also be eligible.
Property investors with tenants who have stopped making their rent payments will also be considered, however they will be assessed by the same rigorous standards as noted in # 3 above.
Note: Some provincial governments have introduced tenant relief programs. Rental-property owners can also encourage their tenants who have been adversely impacted by COVID-19 to apply for these programs if available.
Lender Information and Resources
If you have experienced a loss of income please reach out to us at MortgageServicing@haventreebank.com or by phone at 1-855-272-0051 to tell us your story and we will find the best way to help you with your mortgage in this challenging time.
TD Canada Trust
Federal and Provincial Programs
Employment Insurance (EI)
For employees with insurable employment, EI is available for job loss, lay off, or reduced hours.
- Those who were employed in insurable employment
- Have lost their job through no fault of their own
- Have been without work and without pay for at least seven consecutive days in the last 52 weeks
- Have worked for the required number of insurable employment hours in the last 52 weeks
- Are ready, willing and capable of working each day
- Are actively looking for work (must keep a written record of employers contacted, including when they were contacted).
The basic rate for calculating EI benefits is 55% of your average insurable weekly earnings, up to a maximum amount. As of January 1, 2020, the maximum insurable earnings amount is $573 per week or $54,2000 per year.
The one-week waiting period for EI sickness benefits will be waived for new claimants who are quarantined so they can be paid for the first week of their claim. People claiming EI sickness benefits due to quarantine will not have to provide a medical certificate.
How to Apply
Canada Emergency Response Benefit Act (CERB)
If you are not eligible for EI, CERB intended to be simpler and more accessible combination of, the previously announced Emergency Care Benefit and Emergency Support Benefit (replaced by CERB). If you are eligible for EI and for the CERB, you can only choose ONE program.
- Wage earners, self-employed individuals, contract workers who do not qualify for Employment Insurance
- Those still employed but are not being paid due to insufficient work or employer requested them not to come to work
- Those who must stop working due to COVID-19 without access to paid leave or other income support
- Those who are sick, quarantined, or taking care of someone with COVID-19
- Working parents who must stay home without pay to care for children due to school closures
$2,000 a month for up to four months. This amount is taxable.
- Application portal slated to open April 6
- May apply for payment for any four-week period falling between March 15, 2020 and October 3, 2020
- CERB will be paid every four weeks, with the first payment promised within 10 days of application
How to Apply
CERB Portal to be available April 6 via the Canada Revenue Agency Portal
Canada Child Benefit
Increase in the tax-free monthly payment made to eligible families to help with the cost of raising children.
- Parents or individuals who take care of, or have, children under the age of 18
- Parents or individuals whose child starts to live with, or returns to live with, after a temporary period with someone else
- A person who begins, ends, or changes a shared custody arrangement and gets custody of a child
- You, or your spouse or common-law partner
The federal government is providing an extra $300 per child through the Canada Child Benefit (CCB) for 2019-20. This will mean approximately $550 more for the average family.
This benefit will be delivered as part of the scheduled CCB payment in May.
How to Apply
Those who receive it already do not need to re-apply.
Special Goods and Services Tax Credit Payment
A one-time special payment by early May through the Goods and Services Tax (GSTC) credit for low- and modest-income families.
You are generally eligible for the GST/HST credit if you are considered a Canadian resident for income tax purposes the month before and at the beginning of the month in which the Canada Revenue Agency makes a payment. You also need to meet one of the following criteria:
- You are at least 19 years old
- You have (or had) a spouse or common-law partner
- You are (or were) a parent and live (or lived) with your child
The average additional benefit will be close to $400 for single individuals and close to $600 for couples.
This benefit will be delivered as part of the scheduled CCB payment in May.
How to Apply
There is no need to apply for this payment. If you are eligible, you will get it automatically.
Tentative Federal Financial Programs
The following federal programs are not yet in force, but have been legislated in support of businesses affected by COVID-19.
Canadian Emergency Wave Subsidy
- The government is providing eligible employers a temporary wage subsidy of 75% to help keep employees on the payroll through the Canadian Emergency Wage Subsidy.
- To be eligible, your business revenue must have gone down by at least 30%. It will also cover non-profits, charities, and likely, associations.
- The government will cover the first $58,700 that Canadians earn, up to $847 a week and it will be back dated to March 15th.
Business Credit Availability
The Business Credit Availability Program (BCAP) will allow the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses. The BDC process works fairly quickly and requests should be processed in just a few weeks.
Additional Federal Support Measures
Credits and Benefit
- Individuals, Self-employed, Corporations, and Trusts
- Student Loans
- Mortgage Support Payment Deferral
Loans for Businesses
Complete List of Measures for Businesses
BC Emergency Benefit for Workers
The BC government has introduced a one-time, tax free payment of $1,000 to BC workers whose work has been affected by COVID-19. It's available for those now under Federal programs (Federal EI or CERB) as a result of COVID-19. This payment is also available for non-EI eligible workers. Qualifications include employees who have been or are laid off, self-employed, self-quarantined, taking care of someone who is sick and taking care of a child due to childcare closures.
HOW TO APPLY
The BC Emergency Benefit for Workers is a one-time payment that will be made in May 2020. Applications will be open in the coming weeks and further instructions from government will be given. BC residents who receive federal Employment Insurance, the new federal Emergency Response benefit are eligible.
BC Climate Action Tax Credit
The BC government has enhanced payment of the BC Climate Action Tax Credit. They estimate 86% of families will see more money back in their pockets to a maximum of $218 for adults and $64 per child. Once you have filed tax returns, and are determined to be eligible for this, you will see the benefit.
HOW TO APPLY
The additional one-time payment will be made in July 2020 on top of the regular credit amount for qualifying individuals and families. You are eligible to receive the credit if you are a resident of BC, and you are 19 years or older, have a spouse or common-law partner, or are a parent who resides with your child. You will receive the credit payment from the Canada Revenue Agency (CRA).
Support for Renters and Landlords
This comprehensive package supports renters by:
- halting new and active evictions, except for exceptional circumstances, so that no one is evicted because of COVID-19 and people can remain in their homes during this crisis;
- helping renters pay a portion of their rent each month through a new temporary rental supplement of up to $500 per month, building on other federal and provincial financial supports;
- freezing annual rent increases to ensure that landlords cannot apply an annual rent increase for existing tenants during the COVID-19 crisis;
- supporting tenants in social distancing and self-isolation by providing them the right to prevent landlords from accessing rental units without the tenant’s consent (for example, for showings or routine maintenance), except in exceptional cases where access is needed to respond to urgent health and safety concerns or to prevent undue damage to the unit;
- restricting methods of service for Residential Tenancy Branch disputes or notices to reduce the potential transmission of COVID-19 (no in-person service) and allowing service by email; and
- allowing landlords to restrict the use of common areas by tenants or guests to protect against the transmission of COVID-19.
The new changes support landlords by:
- providing a new temporary rental supplement of up to $500 per month, which will be paid directly to landlords, ensuring they continue to receive rental income during the pandemic;
- preserving the ability for landlords to apply to the Residential Tenancy Branch for permission to issue a notice to end tenancy in exceptional circumstances, for example when the safety of landlord or other tenants is at risk;
- allowing landlords to restrict the use of common areas by tenants or guests to protect against the transmission of COVID-19; and
- restricting methods of service for Residential Tenancy Branch disputes or notices to reduce the potential transmission of COVID-19 (no in-person service) and allowing service by email.