Managing Your Mortgage During a Pandemic

Managing Your Mortgage During a Pandemic

Due to the COVID-19 pandemic, many Canadians are dealing with job loss or reduced employment. Whether you are self-employed, a contract position, or a government employee managing your mortgage during the pandemic should not be a huge financial burden.  

If the pandemic has caused you to be unable to work or experience a loss in hours at your job, there are protections in place to assist you. Six of Canada’s largest banks announced a deferral of mortgage payments program for up to six months and each deferral request is reviewed on a case-by-case basis.

What many citizens are struggling with is the interest payments, as there is no solid rule for whether interest rates will continue to accrue and by how much. As the mortgage payment deferral program is a positive sign of the strength of Canada’s banks and financial system, many Canadians whose request was either rejected or require a large amount of cash to replace any job or business profits immediately are looking for alternate options to ease their financial hardships.

In the case where a lender or bank is unable to help your situation, selling your home as a form of relief measure may be on your mind. During a recession, if the value of your house begins to decrease foreclosure is not the only option, selling your home “as-is” can offer you cash-value of your house without having to go through the traditional tedious selling process.

Selling your home to an all cash offer and not worrying about hidden fees, paying more on your principal due to accrued interest is an option if you choose to sell your home. The coronavirus crises doesn’t have to put you and your family into a financial hardship. Learning about all the options available to you in managing your mortgage payments and avoiding foreclosure allows you to weigh your options and make the financial decisions that is best for your situation.