Unexpected circumstances may arise in daily life, often halting numerous aspects of our routine. However, one thing that continues on despite these circumstances, is your mortgage payments.
Whether due to job loss, medical issues, or other financial setbacks, the inability to make a mortgage payment can place you in a stressful and challenging position.
However, there are ways in which you can remain in good standing with your lender, despite life’s uncertainties.
Communicate with Your Lender
The first and most important step is to contact your lender as soon as any uncertainty arises. As your lender, it is our role to support you throughout your mortgage process and offer advice if you happen to encounter any moments of temporary financial difficulties that get in the way of you and your mortgage.
We are able to offer you resources that can help you to continue paying your mortgage, such as government loans or resources available at your local bank.
Explore Temporary Relief Options
As mentioned above, we are always eager to support you when it comes to balancing life’s uncertainties and your mortgage. One way that we can support you, is by providing you with temporary relief options that will support you through financial difficulties.
The two most common relief options are known as Forbearance and Loan Modification.
Forbearance: You can temporarily suspend or lower your mortgage payments through forbearance.
Loan Modification: A loan modification may entail extending the loan term, lowering the interest rate, or adding missed payments to the end of the loan. It all depends on your financial situation/mortgage terms and the unique circumstance you are in.
Make sure to speak with us before considering either temporary relief option, as we will guide you in the right direction based on your mortgage term, your financial situation, and the unique circumstance you are in.
Government Assistance Programs
There are various government assistance programs and initiatives in Canada designed to assist homeowners who are experiencing financial issues, and are unable to make their mortgage payments.
One of those initiatives is the Canada Mortgage and Housing Corporation (CMHC), which aims to provide mortgage loan insurance and several options to assist homeowners who need additional financial support for their mortgage payments.
One of their services is the Mortgage Payment aid program, which provides short-term financial aid to homeowners who have suffered an unforeseen financial setback.
Depending on your province, each offers a plethora of financial support that can help support you during the unexpected event you find yourself in.
Consider Selling or Refinancing
If your financial issues persist beyond the circumstance you experienced, and you are unable to find temporary relief with the resources mentioned above, you may need to consider selling your home or refinancing your mortgage.
While this decision is one that is challenging to come to terms with, it can help support you during your financial difficulties by preventing foreclosure and protecting your credit score.
Get The Support You Need with Arise Mortgage
Facing the inability to make a mortgage payment due to life’s uncertainties is undoubtedly a challenging situation, however, there are various options available to you that can help you navigate any uncertainty you may encounter.
If you are in need of a team of mortgage brokers to best support you now, and in the future, our team is ready to jump in and take the stress off of your shoulders.
Get in touch with our team today, and let’s chat!