Canada’s big banks moved to provide financial breathing room to customers hurt by disruptions from the steps taken to slow the spread of COVID-19. The big six banks allowed customers to defer mortgage payments for up to six months starting in March.
Here at Royal LePage Crown Realty, we are fortunate enough to have Chris, our in-house mortgage broker here to answer your (an often our) questions in regards to mortgages. Here he’s pointed out 5 notes if you did in fact defer your mortgage during covid, and what your next steps could be to ensure your financial well-being:
- Your high interest debt should be your #1 priority and consolidate if at all possible.
- Consider moving high interest debt to a low interest line of credit with an interest only payment if there is no room in your mortgage, this will free up some monthly expenses.
- Move from your existing interest rate to a lower interest rate will reduce your payments, making things more manageable for your finances.
- Extending out the amortization you can move from a larger payment to a smaller payment – this will make your monthly living expenses more affordable.
- Use your equity to start a rainy day fund to borrow from in the future
Of course, if you are facing significant hardship, and want to protect your credit, selling your home may be another option. The regional market is exceptionally hot for sellers at this point, and this market may allow you to cash in on a significant return for your home.
With interest rates so low right now, it may be a good time to get your ducks in a row. There are mortgage products out there to help build a rainy day fund so you can borrow from that fund in the future rather than a credit card. A quick mortgage review could save you thousands
If you have any questions, or are looking at your options feel free to reach out to Chris, or us if you’re in the market to sell 519-621-2000