The Latest News & Info On Mortgage Payment Relief

Our partner Jesika Lennox Mortgage Agent has spent many hours communicating with their contacts at multiple Lending Institutions, Appraisers, and top Mortgage Brokers from across the country to bring us the most up-to-date information.

We do realize that things are extremely fluid and changing quickly – so by the time you read this, it could have already changed!

We are in some very crazy times and we are working hard to be the best real estate resource possible for our clients, partners and friends. We can help provide advice on what is likely our clients’ biggest financial asset. There are a lot of scared people out there right now. We think it’s important that we are there for them and try to remain as optimistic and resourceful as possible because we all know there is plenty of negativity and pessimism surrounding us all.

We know this is a LONG POST with a lot of information, but we feel it is all relevant and important.

Mortgage Payment Deferral

What:

• Ability to defer up to 6 months of mortgage payments to provide financial relief
• Not to be mixed up with a forgiven payment, or eliminated payment, these payments and interest will be tacked onto the end of your mortgage
• There are no additional fees or costs associated in doing this aside from the interest calculation, no hidden agenda here by lenders
• Each lender has their own version of the interest calculation and resulting amortization which should not have a material impact on the overall interest paid on the life of your mortgage
• For that high “C” client/personality, you can have them confirm with the lender how the interest will then be calculated and they can run a mortgage calculator after the fact if that is the deciding factor on whether to defer or not

Eligibility:

• The government has put a lot of pressure on lenders to not scrutinize and have a very lax process with this
• With majority of lenders, it is simply a matter of 2-3 questions and no corresponding documentation prior to the authorization
  • i.e. have you been financially impacted? Has someone in your family been financially impacted? Has your employer been impacted? All pretty generic and a question I think everyone on this planet can answer yes to.
• Since last week, lenders have changed their tone and process for approving the deferrals and what they may not have authorized last week, has since changed
• Rental property mortgage are eligible for this program (some lenders were a little difficult on this last week but have since changed and I can confirm this)

Process for Deferring your Payment:

• For the Banks – in order of my recommendation for speed
  • Contact any representative you may know that works for a branch, if that fails…
  • Contact a local Bank branch for a representative, if that fails…
  • Visit a local Bank branch (subject to essential services shut down), if that fails…
  • Brew a fresh pot of coffee/Crack a beer/Pour a stiffy and contact the 1-800 line and be prepared for a long wait of 2-3 hours, some occasions longer
• For Monoline Lenders (i.e., First National, MCAP, RMG, Merix and others)
  • Email their servicing department and reference your mortgage #, last name and purpose in the subject line and specify in the body of the email, if that fails…
  • Contact the 1-800 line, wait times not as long as the Banks

• As of tomorrow the appraisal institute is no longer permitting appraisers to visit properties on the interior of homes which limits their ability to complete a full appraisal report, which limits the ability to satisfy all conditionals in a mortgage approval
• Good news is that the handful of lenders I’ve spoke to today have already made internal adjustments as to what they will accept for an appraisal report without access to the property. I fully expect almost all A lenders to develop a revised criteria on this shortly (some lenders are further ahead of others in terms of determining their new criteria is)
• I would caution those hoping to obtain short term (less than 12 month) value increases on an appraisal due to the lack of information these new reports will contain. Not saying it is impossible, we can always try but something to be mindful of limitations due to our current circumstances.

• Every single lender is absolutely swamped right now
• Good news is they want to help, they care and the government has put a lot of money into these institutions to help support the real estate market
• They are not looking for ways to walk away from previously approved mortgages where they have already reviewed majority of the client’s documentation
• The reality is that turnaround times for them to process a file are MUCH slower and patience is required
• We are unsure of how essential services will play out with law offices and their involvement in the signing process and funding (not all lawyers are electronically setup, those who are, will quickly become inundated if they have not already)

If you made it this far congrats…let’s do our best to lean on each other and our own sphere of partners to best serve our clients. It’s going to take all of us. Stay healthy and stay optimistic!

You can contact Jesika directly at 519-500-3608 or email jesika@lennoxrealtygroup.com

Or her website https://www.yourbankalternative.ca/