I very much hope you and your family are enjoying good health and finding some measure of happiness during these uncertain times. Without a doubt, many in Brampton and the GTA are feeling the financial pressures mount. I am here to help and available to discuss strategies that can work for you.
The Mortgage Deferral Program created huge interest when it was announced, primarily because people didn’t understand what this program meant.
A Mortgage Deferral is not payment “forgiveness” that allows you to miss payments. You won’t pay anything during the deferral period, but your lender will add the interest accrued during the skipped period to your outstanding balance. This means your mortgage balance will increase. Your payments will remain the same for the rest of your term but can increase at renewal to account for the higher balance. Some lenders may increase your payments after the deferral period ends.
If you feel you need the assistance of the Mortgage Deferral Program, please get in touch. I can help you determine if this is right for you or if other options make more sense. Perhaps you can borrow what you need from a Line of Credit and make interest-only payments until your financial situation improves. Other possibilities include extending your amortization or moving your payments from accelerated to monthly.
Other strategies and tips:
- Understanding the CERB. You need to apply to the Canada Economic Relief Benefit (CERB) for each 4-week period that your situation continues, up to a maximum of 16 weeks. If you are receiving the CERB through Employment Insurance, just complete your biweekly reports as required to continue receiving your benefit, you do not need to re-apply. Keep in mind that these payments are not taxed but will be taxable to you next spring.
- File your tax return. If you collect the Child Benefit or GST/HST credit, you don’t want your benefits delayed so make sure that you have filed. If you’ll owe money, still get your return completed. The government has deferred tax payment until September 1.
- Can you use your travel points? Many points programs allow you to redeem travel points for gift cards that will help pay for gas, groceries and other needed items.
- Talk to your credit card provider. Some providers will allow minimum payment deferrals to help get you through a tough patch.
- Check in with your local utilities and communications providers. All are certainly willing to talk about payment options or deferral programs.
- Shop around. If you have extra time on your hands, shop around and see if you can get a better deal for your car and home insurance, phone and internet plans.
- Look for money leaks. Go through your credit card and bank statements carefully, looking at subscriptions or other expenses that can be eliminated or reduced.
- Improve your budgeting. There are several good budgeting apps that are free – Mint, and Wally are both highly rated.
- Be aware. Unfortunately, as people become more vulnerable, there has been an increase in fraud and scams. Visit the Canadian Anti Fraud Centre for up-to-date information.
On a positive note, we can all use this time to focus on being better with money. There are many predictions that our new habits will stay with us after the pandemic is over, so adapting and keeping better money habits is a good thing!
Please know that I am available by phone, email, or video conference, and ready to help anyone in Brampton and the GTA. Reach out at anytime with any question you may have. Be well.
