COVID-19 RELIEF

What are lenders doing? What are the emergency funds programs you can take advantage of? What additional measures is the Government of Canada doing? Read below to learn more.

What Lenders are Doing

• Deferral of payments

• Re-amortization of the loan

• Capitalization of outstanding interest & costs

• Special payment arrangement

Please note that when you defer payments, the lender may take the interest that would have been paid compounded, and add it to your mortgage balance. This would mean that upon maturity of your mortgage term, the adjusted monthly payment will be calculated based on the higher mortgage balance. Remember that CASH IS KING during this time. So, please don't let this prevent you from taking advantage of the deferral payment - we're very fortunate to have this available to us in Canada. 

If you need a lender contact number, or are in search of their COVID-19 online application site, please contact me at jessica.kuan@cleartrust.ca

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Emergency Funds During COVID-19

1. Canada Emergency Response Benefit:$2,000 a month (for up to four months) if you lost your job due to COVID-19.

2. GST Credit:$400 for single adults, $600 for couples

3. Child Tax Benefit Top-Up:An additional $300 per child

4. Student Loan Payment Deferral:

• 6 month timeframe

• No payments

• No interest accrual

5. Indigenous Community Support Fund

6. $200 million provided for community resources such as: 

• Shelters/homeless needs

• Sexual abuse/transition house needs

7. $200 million provided for community resources such as: 

8.  Wage Subsidy:

• Up to 75% (retroactive to March 15, 2020) for small to medium-sized businesses for employees. (No details on qualification, caps, or time period)

9. Small Business Loans

• Up to $40,000 government backed

• Interest free for one year

• Up to $10,000 could be forgiven

• More details to come

10. Emergency Support Fund

• $5 billion – more information to come

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Additional Financial Measures from the Government of Canada

• Income Tax Payments: CRA will allow all taxpayers to defer payments for any income tax amounts that are owing between March 18, 2020 and September 2020 until August 31, 2020. No interest or penalties will accumulate on these amounts during this period.

• Income Tax Filing: Income tax return filing has been extended until June 1, 2020.

• Registered Retirement Income Funds (RRIFs): The required minimum withdrawals from RRIFs will be reduced by 25% for the 2020 tax year.