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The AC Lending Weekly

Mortgage Payment Deferrals

Well my friends we are living in unprecedented times.  None of us could have imagined ourselves here and yet that is just where we are and if you require some assistance with your mortgage to get through: it is available.

I going to keep this simple. If you or your spouse, or a renter of your property, have had your income affected by the COVID 19 virus you qualify for up to 6 months of mortgage payment deferral.

All lenders are screening to ensure the deferrals are going to the people that actually require it. Each lender, however, is taking a different approach on the length. Some are giving a few months and then re-evaluating while others are giving 6 months right away.

Lenders are also different in how you will pay this back.  Make no mistake, you will be paying this back. Some are recalculating your payment after the 6-month deferral period (or whatever length of time you took) and increasing your payment so you are where you are supposed to be amortization wise at renewal date. Some are adding the interest on to the back end of your mortgage (yes you are paying interest on your interest) and will recalculate your payment at renewal. Again there is no wrong approach to this and overall you are ‘borrowing’ at a very low rate overall compared to other products out there

So, the million-dollar question, should I defer or not?

If you require the deferral to help yourself, your spouse and yourself or your family to get through this very difficult time, do it. If you don’t need it don’t take it. All lenders are already being stretched to their limits to try to help everyone they can. Don’t add to the strain on the system. Instead be thankful you are ok and stay home!

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