Promise History
3.03.43 - “A re-elected Liberal government will […] [r]equire financial institutions offer flexible repayment options by default if you fall on hard times or face a life event that causes financial stress. This will include a mandatory option for a 6-month deferral of mortgage payments in qualifying circumstances.”
02-Feb-2024
“A mortgage payment deferral is a temporary mortgage relief measure. It may help you in the short term if you’re experiencing financial difficulties. // With a mortgage payment deferral, you enter into an agreement with your financial institution. This agreement allows you to delay your mortgage payments for a specific period, usually up to 4 months.”
Mortgage payment deferrals - financial Consumer Agency of Canada
04-Jul-2023
“11. In support of working with a consumer at risk towards implementing a sustainable arrangement, FCAC expects an FRFI to provide mortgage relief that is temporary in nature, such as: 11.1 waiving prepayment penalties when […] a consumer at risk makes a lump sum payment to avoid negative amortization, or […] a consumer at risk sells their principal residence // 11.2 waiving internal fees or costs for a limited period when activating mortgage relief measures that otherwise would be charged // 11.3 for a limited period, where mortgage relief measures result in negative amortization, ensuring that no interest is charged on interest that has been capitalized. […] For the purposes of this Guideline, a limited period refers to 12 months or less.”
Reference Documents
“If your insurance company approves your claim, the payments typically start after a waiting period. This is usually 60 days. There may be a maximum monthly benefit. Most financial institutions offer job loss insurance for a maximum of 6 months. There may also be a limited number of months for which your insurance benefits apply. Some financial institutions require that you submit your claim within a limited period, following a job loss.”
Mortgage deferrals - Financial Consumer Agency of Canada
“The federal government, through the Financial Consumer Agency of Canada, is publishing a guideline to protect Canadians with mortgages who are facing exceptional circumstances. Specifically, the government is taking steps to protect Canadians and ensure that federally regulated financial institutions provide Canadians with fair and equitable access to relief measures that are appropriate for the circumstances they are facing, including by extending amortizations, adjusting payment schedules, or authorizing lump-sum payments. Existing mortgage regulations may also allow lenders to provide a temporary mortgage amortization extension—even past 25 years.”
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