Newsletter April 2020
2020-04-14 | 12:33:53
In this issue: To Defer or Not to Defer; Tips for Social Distancing & Staying Safe From Home.
Welcome to the April issue of your monthly home & mortgage news offering tips to keep you in the know! Please feel free to contact me with questions or feedback regarding this issue. Thanks again for your continued support and referrals. Stay safe and stay in touch.
To Defer or Not to Defer
With Canada's major Mortgage Finance Companies (MFC's) and all six big banks offering mortgage deferrals of up to 6 months, as well as case-by-case options from credit unions, one of the major questions currently facing Canadians amid COVID-19 is do you defer your mortgage? To help you with this decision, we have gathered some important information on what it means to defer and the benefits (or side-effects) from doing so.
For anyone who is unsure, a mortgage payment deferral means that customers are not required to make regular payments (principal, interest and property tax, if applicable) on their mortgage. In the case of COVID-19, this deferral period can be up to six months.
As much as you may be keen on taking advantage of deferring your mortgage, it is essential to remember that this is not "free money". During the time mortgage payments are deferred, it is important to understand that interest will continue to accrue and will be added to the mortgage account balance at the end of the deferral period. That said, depending on your financial situation, this may be a great option for those individuals who are facing lower monthly income due to COVID-19.
When deciding whether to defer, I recommend you have an honest conversation with yourself about your financial situation.
1. Have you lost monthly income due to COVID-19?
2. Are you struggling to pay your monthly bills as a direct result of COVID-19?
3. Are you finding yourself extra stressed about your finances?
Remember, deferring payments is as much an emotional and mental decision as it is a financial one. In most cases, if you are really stressed and struggling then deferral is the way to go as it will help free up some income right away for families with reduced or no monthly income due to COVID-19.
Tips for Social Distancing &
Staying Safe From Home
Stay Safe. Stay Home. Save Lives.
This is currently the motto for Canadians who are working hard across the country to combat COVID-19 by staying home - including your mortgage brokers! While social distancing of this magnitude has never occurred previously, it is important to understand that we are all in the same boat. To help you get through this period, I have put together some tips for social distancing and staying safe (and proactive!) at home:
1. Follow Best Practices:
Ideally, to make social distancing most effective, individuals are only interacting with their household during this time and until the pandemic is under control. Some other best practices include:
- If you have to go out and restock your pantry or get supplies, try to only go out once per week.
- Be mindful of other consumers; do not overstock.
- If you are out in public, be sure to stay at least 6ft away from other individuals.
- On walks, do not let your dogs say "hi". They will forgive you, we promise.
2. Maintain Your Routine:
When the world feels like it is going crazy, one of the best things you can do to keep your sanity is to maintain your routine. Whether you're out of work or working from home, making sure that you continue to get up at your normally scheduled time and go through your morning process is a great way to maintain stability. Taking your regularly scheduled breaks, such as lunch hour, while working from home are also important to maintain your schedule (and keep sane). Be sure to continue to maintain social distancing procedures during this time.
3. Get Up and Move:
It can be hard to feel motivated, but it is important to make sure to get up and get moving when you are able. From a home workout to a walk, everything works towards keeping your body and brain healthy; especially during times of extra stress. Carve out 15-60 minutes per day for some light physical activity and you will be amazed at how much better you feel!
4. Connect With Others:
In today's world, we have a plethora of technology at our disposal. Even if you feel alone, there are ways to reach out to friends and family through Skype, Houseparty, Zoom Meetings, e-mail, text and an old fashioned phone call. While it is vital to maintain physical distance, we as humans require connection so be sure to utilize the tools around you and don't be afraid to share your feelings - your friends are all in the same boat and will understand.
5. Stay Informed:
Information is power and the more information you have at your disposal as this situation develops, the better prepared you will be to manage your household and finances. Mortgage Centre Canada's dedicated COVID-19 website is a great resource for staying up to date: www.mortgagecentre.com/