- Hey, it's Nolan Matthias from Mortgage360.
Thanks for tuning in for another
coronavirus mortgage update.
Today we're gonna talk about how to defer your payment.
But before we do that, in order to make sure you're getting
the latest and most up to date mortgage information,
hit the subscribe button and that notification bell.
So let's talk about how to defer your mortgage payments.
First and foremost, I think there's one line
in all big six banks, press releases,
that is really, really important.
And that's this, on a case-by-case basis.
What that means is that not everyone is going
to automatically get a six month deferral,
and quite frankly if you aren't in a scenario
where you are going to find yourself in financial
hardship you're probably going to be denied.
This program is designed for people
who cannot make their mortgage payments.
If you can make your mortgage payment,
stay off the phone lines and let the people
who need help get through.
So here's what you need to do
if you wanna take advantage of the deferral process.
First and foremost, you need to find out
or assess your financial situation.
Can you make your mortgage payment?
If you cannot make your mortgage payment
and it looks like you're going to miss it in the next five
to 10 business days, get on the phone,
or get in person with your banker,
I know in person isn't a thing
you really wanna do right now.
But if you can't get through on the phones,
you know in person might be your only resource here.
So get on the phone, get in person with your banker,
and make an application to have payment deferral.
What you're gonna wanna do is you're going to wanna create,
basically, application proof or application documentation
showing that you do have financial hardship.
So, things that can be included in this is a record
of employment showing that you've been laid off.
Bank statements showing that you don't have the money
to make your mortgage payments.
And bank statements showing that you don't have other
resources like RSPs and TFSAs,
or available lines of credit or credit cards
that you could use to make your payments step.
We've seen TD Bank's internal document
on how they're handling,
these deferral requests and documentation
and proof is going to be important,
because the next step after you've applied,
is they're going to send up to management a request
for your mortgage payments to be deferred.
Once that request is in place management makes a decision
and it's a customized decision for each individual client.
Just because they're offering up to six months,
doesn't mean you're going to get six months of deferral.
Most people probably won't get six months of deferral
they'll get one month or two months
or three months or four months.
But it'll be based on your individual
personal financial situation.
Once it's gone up to management, you get the approval back,
you'll be told what you've been approved
for with respect to a deferral.
And then hopefully, if you've done it with enough advance
notice before missing a payment,
they'll just put a stop on taking
payments out of your bank account.
Now, this is all pretty simple information,
assess your financial situation,
go and apply,
have documentation ready to show
that you have financial hardship
and then wait for the answer.
Pretty simple process.
But again, the key thing here is,
don't make the phone call,
unless you absolutely need the help.
The Canadian Bankers Association
and the six major banks did a really good thing.
It was a good news story stating that they're going to allow
up to six months of deferral.
They made a misstep on this and that's they weren't clear
in who qualifies for for it,
and who this is designed to help.
Which means we've got a lot of people who are phoning,
their big banks asking for deferral,
who may not need the help.
So please, if you don't need the help,
don't call the banks because all you're doing is clogging up
the system for the people who really do need the help.
We've heard stories today of people trying to call
their bank, their credit card company and not being able
to get through waiting hours and hours and hours on hold.
That's likely because there's a lot of people calling
for help that don't actually need it yet.
So again, I plead with you.
If you don't need the help,
please don't make that phone call.
We'll be back again as soon as we have more updated
mortgage information and more updates.
But again, please hit that subscribe button
and the notification bell,
so we can keep you as informed as possible.
Cheers.