Back to: April 2020


What is Mortgage Payment Deferral?
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The Coronavirus crisis has left many homeowners in Canada without a job or with reduced hours and wondering how to pay their mortgage. Homeowners facing financial stress may be eligible for a mortgage payment deferral up to 6 months to help ease the financial burden.

The COVID-19 Mortgage Payment Deferral program will be ongoing. You can apply at any time during this outbreak.

What is mortgage payment deferral?
Mortgage payment deferrals can help you during times of financial hardship — like unemployment or reduced employment due to the Coronavirus (COVID-19) outbreak.

The deferral is an agreement between you and your lender. Typically, the agreement indicates that you and your lender have agreed to pause or suspend your mortgage payments for a certain amount of time. It’s also known as a mortgage payment deferral agreement or mortgage forbearance agreement and it’s a temporary measure.

After the agreement ends, your mortgage payments return to normal and the missed payments — including principal and accumulated interest - repaid.

How mortgage payment deferrals can help you?
A mortgage deferral helps you when you’re struggling to make your payments by allowing you to skip your mortgage payment for a specified amount of time.

Are the deferred payments erased or canceled?
The mortgage deferral agreement does not cancel, erase or eliminate the amount owed on your mortgage. At the end of the agreement, you will have to resume payment according to your regular payment schedule.

NOTE: The interest that hasn’t been paid during the deferral period continues to be added to the outstanding principal of your mortgage. This can affect the total amount you owe in accordance with the original payment schedule.

Do I need to repay the deferred amounts?
Yes, you’ll need to repay the amounts of the skipped payments including both principal and interest.

How do I repay the deferred amounts?
Details of the repayment will vary according to the specific lender and situation.

The interest on your mortgage that hasn’t been paid during the deferral period continues to be added to the outstanding principal of your mortgage. When your payments start again, your mortgage payment might be based on the total amount you then owe to pay off your mortgage in accordance with the original payment schedule.

IMPORTANT: Mortgage payment deferrals focus solely on your mortgage. It won’t affect other payments regularly withdrawn, like property taxes and life/disability insurance.

How do I know if I am eligible for a mortgage payment deferral?
Your lender — your bank or your mortgage professional — can tell you if you are eligible for a mortgage payment deferral.

Is CMHC helping with mortgage deferrals?
Yes, with the COVID-19 outbreak, we are allowing lenders to offer deferred payments for insured mortgages.

All mortgage insurers offer a number of tools to lenders that can help you when you’re in financial difficulty and are struggling to meet your mortgage obligations.

What if my mortgage isn’t CMHC-insured?
Any borrower facing financial difficulty should contact their lender — your bank or mortgage professional — to learn what options are available.

What are my options?
The payment deferral is for people who will struggle to make their next mortgage payment. If you are in a position to make your payments, you should.

If — at any point in this crisis — you think you won’t be able to make your regular mortgage payment, it’s important for you to take quick action. Contact your bank or mortgage professional immediately before you miss a payment.

 

Source: Canada Mortgage and Housing Corporation

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With Compliments of

Michele Vyge-Fraser
Real Estate Agent/ Associate Broker/ CNE®


Red Door Realty
1314 Martello Road
Chapter House
Halifax, Nova Scotia,
T: 902-830-6397
NovaScotiaRealEstate@gmail.com
www.RedDoorRealty.ca

Hello! 

It is April 13 as I am writing this note and there are currently 1435 (compared to 1,123 in March) conditional MLS® sales in all categories showing on our Nova Scotia MLS® system.

This is indeed the Spring Market now and we are seeing more listings as expected. The overall market continues to be a continuation of the sellers market, with most sellers still receiving multiple offers and buyers continuing to experience aggressive competition from both local and out of province clients.

It's really interesting to see which parts of the province are experiencing the highest sales. As to be expected, HRM is the highest, yet 55% of the total sales that have firmed up in the last 4 weeks are outside this area. From the 2055 MLS sales, across all categories of real estate, that have firmed up across the province in the last month, here's the break down;

  • Annapolis Valley 317 solds
  • Cape Breton 143 solds
  • Highland Shore (Antigonish - North side of Cape Breton) 95 solds
  • Northern Shore (north of Truro up to Amherst, over to New Glasgow) 253 solds
  • South Shore 290 solds
  • Yarmouth area 42 solds
  • Halifax/Dartmouth - HRM 915 solds

Also interesting to note that last month, approx. 51% of the total sales that firmed up the month before were across HRM compared to approximately 45% this past month. 

Vacant land also continues to be in high demand!

So where are we going? I believe our sellers market will continue despite the anticipated stress test change in June. In the short term, though it will likely add even more heat to our sellers market, our average prices are still lower than most comparable markets across the country. That and the demand for 'work anywhere from home' properties will likely continue to move our market well into the foreseeable future. 

If you are considering selling, this is still definitely the time! If you are looking to buy, please contact me anytime! 
 

Hope you have a great month! 


With Gratitude,

Michele 



NATIONAL MORTGAGE RATES
Term Posted
Rates*
Best
Rates*
6 Months 3.34% 3.30%
1 Year 3.59% 3.04%
2 Years 3.74% 2.89%
3 Years 3.89% 2.79%
4 Years 3.95% 2.95%
5 Years 5.34% 2.69%
7 Years 5.80% 2.99%
10 Years 6.10% 3.04%
Variable Rate 2.90%
Prime Rate ** 3.95%
*last updated: Feb 18,2020


www.RedDoorRealty.ca

Halifax Mortgage Specialist Bruce Lusby 

(902) 210-0515

http://mortgageweb.ca/BruceLusby

Halifax, Nova Scotia - updated Oct 6, 2015

Variable:

5yr @ Prime - .65% (2.05%)

HELOC @ Prime +.25% (2.95%)

Fixed:
1yr 2.29%
2yr 2.09%
3yr 2.24%
4yr 2.54%
5yr 2.54%
6yr 3.39%
7yr 3.44%
10yr 3.84%

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