Back to: April 2020


What is Mortgage Payment Deferral?
Small Pic

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

..............................................................................

OTHER ARTICLES
 

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


August 26, 2020

Hello!

Wow! It's been quite a summer. As I write, a few weeks ahead of schedule, our local real estate market continues to be a hot sellers market and Red Door Realty has just launched our hot new website! (when you have a chance, please check out the link at the bottom of the page or in one of the articles below - would love to hear what you think of it!)

In this month's newsletter you will find a few more articles than usual that connect directly to our local Halifax real estate market, and to one particular article of note - a CBC news article that just came out on August 25. It's a very interesting article but also seems to include a cautionary note from Kelvin Ndoroa, a senior analyst with CMHC. He says '...Some of these risks include overvaluation, speculative demand and over construction'. While I appreciate Kelvin's outstanding data reports, I'm not sure I agree with his opinion. Simply put, I'm not sure that he totally appreciates who the buyers are who seem to be moving our market and where the demand is coming from.

These are unprecedented times. No one could have predicted the pandemic and no one could have anticipated the lifestyle re-evaluations many people would consider during the lockdown. Our market, pre-pandemic, was already in a sellers market, then we pressed 'pause'. Since then, especially over the last 3 months, we are continuing to see 'business as usual' plus some of the 'lock down' results of those lifestyle evaluations and decisions by locals and people from afar. I believe, at the most basic level, that this is creating the demand. Add the low interest rates, the ongoing construction to try to keep pace with our growing population combined with 'it's Nova Scotia's time again' and we seem to have a winning formula for a sustainably strong real estate market. But, since the data always trumps over opinion, I have done yet another review of our MLS® sales, specifically comparing MLS® data from 2019, January 1 - August 26, to January 1 to August 26, 2020. Here are the results.

Residential sales only...
  1. Across HRM, in 2019 there were 4515 MLS® solds compared to 4416 so far this year = only 2.24% fewer sales so far this year, compared to 2019, across HRM, a direct result of higher sales to listings ratios
  2. Just on Peninsula Halifax, south, central, west and north end, in 2019, there were 510 MLS® solds compared to 397 firm sales so far this year = 28.5% fewer sales so far this year, a direct result of low inventory
Just on the Peninsula, MLS® sales under $400,000 have been fewer compared to 2019 and so have the percentage of sales per price category - a direct result of increasing prices.
  • $400,000 - $500,000 price range has also seen fewer sales compared to 2019 yet accounts for 3.7% more of the 2020 sold market so far (23.7% of the 2020 market)
  • $500,000 - $600,000 price range has also seen fewer sales compared to 2019 yet accounts for 1.1% more of the 2020 sold market so far (12.3% of the 2020 market)
  • $600,000 - $700,000 price range has more sales compared to 2019 and accounts for 2.3% more of the 2020 sold market so far (8.3% of the 2020 market)
  • $700,000 - $800,000 price range has seen fewer sales compared to 2019 and accounts for .2% less of the 2020 sold market so far (4.5% of the 2020 market)
  • $800,000 - $900,000 price range has more sales compared to 2019 and accounts for .9% more of the 2020 sold market so far (3.3% of the 2020 market)
  • $900,000 - $1,000,000 price range has seen fewer sales compared to 2019 yet accounts for .2% more of the 2020 sold market so far (1.8% of the 2020 market)
  • $1,000,000 plus price range has seen fewer sales compared to 2019 and accounts for .6% less of the 2020 sold market so far (3.3% of the 2020 market)
It will no doubt be interesting to compare HRM at large to these Peninsula price category percentages at the end of the year. 

I hope you enjoy what's left of summer. Please contact me anytime, especially with any of your real estate questions, needs and/or goals!

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%

Copyright© Canada Realty News™. All Rights Reserved.

The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice. If your property is currently listed with a Real Estate Broker, this publication is not intended as a solicitation.