Mortgage Deferral Information by Roost Mortgage
We have had many clients asking about mortgage deferral options for them and their family and friends, so I wanted to reach out to you with some information that I hope you find helpful.
- The vast majority of lenders in Canada have adopted a form of a deferral program for client mortgages.
- The majority of these programs involve deferring payments for up to 6 months and adding these payments to the end of the mortgage term.
- Lenders will still be charging interest on your mortgage during the deferral term.
- This is not a payment waiver, rather simply a payment delay. I think each client is the best judge of their situation but if you are able to comfortably pay your mortgage, it will be to your benefit in terms of long-term mortgage reduction to continue to make your payments.
- I would caution you to be ready to explain to the lender why you need a mortgage deferral. Some lenders are very open to the deferral and others are trying to screen out people who are not high need, so the best advice is to be prepared with a strong explanation in case it is needed.
Contact Numbers for the Most Common Lenders:
I thought it might be convenient for you for us to include the contact details for the most common lenders below. The lenders are extremely busy fielding calls from clients so anticipate waiting on the phone for decent amount of time before you get through.
– ATB 1-800-332-8383 – BMO 1-877-895-3278
– CIBC 1-800-465-2422 – CMLS 1-888-995-2657
– Equitable Bank 1-888- 334-3313 – First National 1-888-488-0794
– Home Trust 1-855-270-3630 – Manulife 1-877-765-2265
– MCAP 1-800-265-2624 – Merix 1-877-637-4911
– RBC 1-866-809-5800 – Scotia 1-800-472-6842
– TD 1-866-222-3456
Mortgage Rate Update:
The 5-year benchmark bond (which fixed rates are based on) saw a bit of a steep recovery by the end of last week with a quarter point rise from 0.55 to 0.76%. There is currently a counter intuitive movement going on with many lenders having increased their fixed rates once or twice last week along with decreasing the discount on the variable (which effectively increases the variable rates). This has resulted in most new fixed and variable rates residing in the mid to high 2% range.
We currently have an inverted bond yield curve; this means that short term rates are a bit higher than longer terms rates so from a client perspective the five-year fixed rate is stronger than its 2 or 3-year alternatives. I have included a link to the current 5 year benchmark bond yield graph here:
https://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/
Renewal and Refinance Questions:
If you have any questions about refinancing or renewing your mortgage, please always feel free to contact your mortgage broker or financial lender. If you do not have a mortgage broker, please contact me as I would be happy to work through custom options and solutions together. I am here to help you, your family, and friend with anything as it relates to your mortgage.
Mortgage deferral information by Roost Mortgage
Rylan Hahn
