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
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
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.
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