According to the CBC, over 117,000 workers lost their jobs at the onset of the province shutting down to slow the spread of COVID-19. This sudden loss of income hit many families hard, forcing them to make some hard decisions regarding their finances. Cutting down on extra expenses like the morning coffee and eating out can only go so far. Tough times call for tougher measures.
Even with financial support programs from the government, some Albertans have found themselves struggling to make their most important payments. Luckily, many lenders have agreed to allow mortgage deferrals during this time. A mortgage deferral is an agreement between lender and borrower to effectively press pause on monthly mortgage payments. The interest will still accumulate and may actually increase your monthly payments after the deferral period is over, but it will give you time to rebuild your finances.
Mortgage lenders want you to succeed, otherwise, they end up losing out on a lot of money. Because of this, most are willing to work with homeowners to find a viable solution. If deferring your mortgage isn’t an option or you feel that you can still make some payments, consider asking your lender about:
Extending your mortgage amortization. Since you’ll be extending the amount of time you need to pay your mortgage, your monthly payments will be less.
A special payment arrangement. Your lender may be able to come up with a creative solution to help you make payments within your COVID-19 budget.
Converting your rate to variable or fixed. In some cases, you could save on your monthly payments by changing from variable to fixed or vice versa.
Whatever financial situation you find yourself in during this pandemic, you don’t need to feel trapped by your monthly mortgage payments. Work with your lender to find a solution that can ensure you and your family are fed and safe, without risking the roof over your heads. For expert advice from our team of mortgage specialists, contact us today.
Source was absolutely great to work with - went above and beyond to help us get everything done when buying our new home. Highly recommended!! Chad and Jenelle Richards Jan 09 2013
Chad and Jenelle Richards
Added January 23rd 2013
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