COVID-related Mortgage Deferrals are coming to an end.
What does this mean for me?
Your payments will return to normal and increase to include a portion of the deferred payment.
If you are back to work and have accumulated debt outside your mortgage, you may qualify to re-structure your existing mortgage so you can payout some higher interest debt and take out some extra equity to have an emergency fund handy should we see anything like this again.
If I am an landlord, what are my rights with my tenant?
Now that the emergency order is over, any deferred rent is due over an above regular rent and they have until July 10th, 2021 to pay back outstanding rent installments.
Landlords will now have an option to report rent to the credit bureau as well. Landlords will be able to access this in the future to get a deeper picture of a tenant, and tenants will now have to carry less credit for mortgage approval which can help up to 33% of Canadians!
How do I protect myself moving forward if a financial or health emergency comes up?
We recommend setting up an auto payment plan that takes from the concept of “paying yourself first”. A simple pre-authorized debit into the proper investment vehicle will help you with taxes that are due from anyone who received CERB (tax bill is coming for that), as well as setting up an emergency fund.
Tax time and your mortgage:
How do we prepare and protect ourselves moving forward?
CERB is taxable so if you have your new budget in place to “pay yourself first” you will have a buffer for that and be ready.
If you have been working from home during this time, a portion of your mortgage may be tax deductible, along with any other funds used for an arms length investments.
How will lenders report deferrals moving forward?
Any payment deferrals made after the end of CERB will follow most lenders normal practice. While no more deferrals will be granted at this moment in time under the federally supported program, missed or differed payments required now, will show as late payments on your credit and will negatively impact your future costs of borrowing.
We highly recommend looking at other customized solutions (such as accessing your equity) if you have debt outside your mortgage or need an emergency fund.
Do I have all government grant available to me?
We’re in a time where it’s essential to be hands on with your finances. In conjunction with your mortgage professional, a financial planner and/or accountant and ask them their recommended proactive steps – try to avoid just handing them a document package at the end of the year.
Be upfront about changes in your marital status, health, income changes, and any renovations done to your home. This will ensure you are all on the same page and protected no matter what life changes happen on your journey.
If you or a loved one are looking for guidance managing these changing times, we are always here to help. Reach out to us at hello@countoncalla.ca and we’ll put a plan in place to ensure you’re set up for success. You are not alone. ❤
Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.
Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.
For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.
