Options for mortgage payment deferral during COVID-19.
With the announcement in March that the big banks will allow deferral of mortgage payments for 6 months an influx of people applied for this option. In times likes this we sometimes make decisions without a full review. There is no better time to consult with your professional advisors including your trusted independent mortgage broker.
Most lenders have an online portal which makes it easier to manage your affairs. Sometimes it can be difficult to make an informed decision if you don’t know you have more options than the one choice in front of you. That is the main benefit of an independent mortgage broker to give you choices and a clear understanding of which may be the right fit for you.
Options for mortgage payments during COVID-19
Before you opt to defer your mortgage payments for a full 6 months you may want to consider:
Your mortgage balance
The current interest rate and remaining term
The current amortization left on your mortgage
How long your situation may require of a change
Once you review these items with your mortgage broker you can consider the best options which may include:
Review of your current interest rate and consider a refinance to a lower rate and longer amortization to reduce the payment
Extend your amortization period allowing you to reduce your monthly payment. When you no longer need this option you can increase your payments and reduce the amortization period and
Skip a payment month by month to allow you to control the time frame. This allows you to make up the payments at the end of the term or when you pay out the mortgage. Accrued interest charges will vary depending on the option you choose.
Hold a payment for 30 days
Add a line of credit to your mortgage for easy access to cash as needed. Interest only payments required so you can pay off credit cards and lower your monthly cost of borrowing
Cash-back mortgage to pay off debts and provide emergency fund for expenses
Options for Mortgage Payments During COVID-19 are available. More more details and to help you make an informed decision consult your trusted independent mortgage broker.