The global crisis stemming from the COVID-19 continues to have a profound and unprecedented impact on humanity. Some of the necessary steps to stem the virus (flatten the curve), such as staying at home, may also impact your personal finances. If you’re a homeowner and are being impacted by COVID-19, here’s a few items you may want to consider.
Deferring Mortgage Payments
Canadian banks and credit unions are committed to working with their customers on a case-by-case basis to find solutions to help them manage hardships caused by COVID-19. If you are impacted by COVID-19, talk to your bank or credit union about a mortgage payment deferral.
Refinancing Your Mortgage
Talk to your bank or credit union about refinancing your mortgage which means you’ll pay off your existing mortgage and replace it with a new one. There are many reasons why homeowners refinance their mortgage including reducing their interest rate when rates have dropped, to tap into their home’s equity to finance a large purchase, consolidate other debts, or to raise funds to deal with a financial emergency.
If you have built up equity in your home but for one reason or another cannot obtain financing from your bank or credit union, you may want to consider an alternate lender. Talk to a mortgage broker about private lending.
Private lenders help homeowners unlock home equity quickly, typically within a few days, and have flexible lending guidelines including interest only payments.