Since the start of the COVID-19 pandemic, Canadians have deferred close to $1 billion in mortgage payments.
In March and April, most of Canada’s banks and smaller financial institutions announced mortgage deferral programs that would allow Canadians to skip mortgage payments due to their tightened cash flow.
However, there’s growing concern that once the program ends and payments become due, Canadians won’t be able to afford what they owe. According to the Bank of Canada, it expects the mortgage arrears rate to spike to double the high it hit in the depths of the financial crisis in 2009. The Canada Mortgage and Housing Corporation hints that it might be even worse than that, “since many non-bank financial institutions also allowed such accommodations, we expect the total number of mortgage deferred to be higher.”
If you’ve been deferring mortgage payments and need the advice to help you get out of it, give us a call 705-805-9055!