The canadian economy is not doing so well right now with high unemployment rate still, non-existent GDP growth for the past couple of years, 35% tariff from our neighbor in the south and people getting laid off left right and centre not for performance issues entirely but because companies and corporations wants to save up money for dark times ahead and for the next technological step which is AI.
Yes its unfair. But we live in an unfair world and if you are someone that was unfortunately let go but you still have a mortgage to pay. What are your options until you find a new job?
1. Talk to your lender/bank:
-First thing you should do is contact your lender or bank to see what they can help you with, since most banks/lenders will have a mortgage assistance program to help borrowers that ran into financial issues and hardships.
-But the assistances rarely goes for an entire year
2. Own savings:
-Simple here. you are using your own money to pay for your mortgage.
3. Non-Payment Mortgage Options:
There are 2 types of non-payment mortgage options. One is for someone younger than 55 and the other is for someone that is older than 55.
a). Option 1: Non-payment option for younger than 55
-you need to have at least 35 to 40% equity in your property
-its a B lender so rates will be slightly higher and you will need to pay lender and broker fee which can be added into the mortgage
-the mortgage process is the same as if you were still employed. But stronger focus on your exit plan and overall story
-only for owner occupied properties and yes mortgage payments are required but interests still accrue in the mortgage
b). option 2: non-payment option for older than 55
-only for owner occupied properties
-only need to be to show you can afford to pay property tax, heating costs and condo fees ( if applicable) to maintain property
– Its like a line of credit on your property without the need to repay balance if you don’t want to. But interests will continue to accrue.
-great for seniors to supplement their income as expenses keeps going up but retirement income tends to stay fixed and for gifting down payments to next of kin for their home purchases
I hope you find this blog helpful and if you have any questions feel free to contact me:
Frankie Ho
647-982-0130
frankie.ho@calibermortgage.ca