• CERB and Mortgage Deferrals to End: What Can I Do Now?

    September 15, 2020
  • CERB and Mortgage Deferrals to End What Can I Do NowCERB and Mortgage Deferrals to End: What Can I Do Now?

    CERB is ending at the end of September

    The Canadian mortgage market is about to face reality at the end of September. The Canadian Emergency Relief Fund or better known as CERB and the deferrals for mortgage payments are about to end. So what ramifications will it have? We are not certain, but we can speculate. The raw numbers tell us that 8.5 million Canadians took advantage of CERB and that 850,000 mortgages were deferred. Those are big numbers. In fact, our nation’s unemployment rate was at 10.2%.

    Employment Insurance

    Before we reflect on the future, let’s look at how the Canadian government is responding to the CERB. Employment Insurance benefits will be given to Canadians to provide assistance to employees who lose their jobs involuntarily and are actively looking for work. For those eligible, they will receive $400 per week for 26 weeks.

    Assistance After Deferral Ends

    If your mortgage has been deferred, your assistance will be limited. Major chartered banks have decided not to continue the program. If you’re in financial trouble, contact your personal mortgage lender. They will listen and evaluate each situation on a case by case basis.

    Our Prediction

    Nothing in life stays constant and this includes this pandemic. The virus changed how we feel and how we live. It appears the worst is over and things are getting better. Workers are getting back to work, restaurants are opening, Canadians are starting to travel again (in Canada) and kids are going back to school. That’s the good news. Reality will now hit the mortgage and subsequently the real estate market. I suspect the following will happen: many mortgagors will still be hurting financially. Although many will survive, many won’t. I do believe that many will have financial difficulties and as a result will be forced to move. This will not be necessarily a bad thing as it will provide more listings which will provide a more balanced real estate market. This should balance prices and have potential purchasers with more choices.

    Robert Floris has been in the mortgage industry for 30 years, including working as a Sales Manager for a major chartered bank. Over his career, he has personally lent over 1 billion dollars and proudly continues to advise and tutor his valuable clients.

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

    If you would like to apply for a mortgage online, please follow this link.

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