Trouble Making Your Mortgage Payments?
For most Canadians, our home is our most important investment. But owning a home also comes with a great deal of responsibility. When unforeseen circumstances impact your ability to meet your mortgage payments, it’s important to take quick action and contact your lender. With early intervention, your lender can help you find a solution to your financial difficulties.
For mortgages insured by the Canada Mortgage and Housing Corporation (CMHC), CMHC provides lenders with the tools and the flexibility they need to achieve a solution to your unique financial situation. Depending on your circumstances, this might include:
• Converting your variable interest rate mortgage to a fixed interest rate mortgage to protect you from a sudden interest rate increase, should one occur;
• Temporary short-term payment deferral. Your lender may be prepared to offer greater payment flexibilities, particularly if previous lump sum prepayments have been made, or if you have previously chosen an accelerated payment schedule;
• Extending your repayment period (amortization) to lower your monthly payments;
• Adding any missed payments to your outstanding balance and spreading them out over the lifetime of your mortgage; or
• Arranging special payments unique to your particular financial situation.
If you are having trouble making your monthly payments, these three steps can help you and your lender find a successful solution:
1. Talk to your lender at the first sign of any financial difficulty. Ask your lender about the options available to you, and keep them informed of your situation.
2. Clarify your financial picture by preparing a list of your income, financial obligations, savings and investments before meeting with your lender. This will help paint a more detailed picture of your financial situation, and make it easier to find a viable solution.
3. Stay informed about your family’s personal financial circumstances as well as the economy at large. The more information you have at your fingertips, the more prepared you will be to make the right decisions for your future.
