How To Deal With Mortgage Payment Difficulties
When unforeseen financial circumstances impact your ability to make regular mortgage payments, you risk defaulting on your mortgage. This said, with early intervention, cooperation, and a well-executed plan, you can work together with your mortgage professional to find a solution to your financial difficulties.
Mortgage With Vadim has outlined a few steps you should take to help you deal with issues meeting your mortgage payments. For mortgages insured by the Canada Mortgage and Housing Corporation (CMHC), we have identified several tools available to help you ride out a period of financial uncertainty:
Talk to your mortgage professional at the earliest
It can be tempting to want to conceal your debt problem for as long as possible, but this is almost never the best strategy. With early intervention, there are solutions available that can help in this situation. We don’t want to see you default on your mortgage, so get in touch with us. We are glad to help homeowners find a way to keep their homes.
Consider your options
Converting a variable-interest-rate mortgage to a fixed-rate mortgage to protect you in the event of a sudden jump in interest rates might be a good idea. Similarly, your lender may be willing to offer a temporary payment deferral or other flexible options for short-term relief. If you’ve made any lump-sum payments against your mortgage in the past or if you’ve been on an accelerated payment schedule, this can help.
Additionally, you may be able to extend your amortization period to reduce your monthly payments and shorten the amortization again later if your circumstances change.
If you’ve actually missed a few payments already, you can ask if the lender is willing to add them to the mortgage balance and extend the payment period accordingly. A special payment arrangement unique to your situation may also be possible. However, fixing issues before you start missing payments is best!
As an alternative to CMHC, Genworth Canada has a Homeowner Assistance Program designed to help homeowners experiencing temporary financial difficulties that may put their mortgage at risk.
Stay vigilant and informed
Ultimately, it’s best to seek help at the first sign of financial trouble. Getting in touch and having a conversation is a great place to begin. As an independent mortgage professional, I work solely for my clients and look out for their best interests.
It’s possible that your financial situation requires some extra penny-pinching to stay on budget. But it’s time to have a conversation if you find yourself adding to your credit card debt or borrowing to make mortgage payments. The earlier you get help and the more you learn about dealing with finance, the easier it will be to conquer these debts.
For more tips on how to avail of mortgage services, reach out to Mortgage With Vadim. As a reliable mortgage agent with Mortgage Intelligence, Canada’s premier mortgage expert, I will provide you with the information give you info your bank doesn’t want you to know and ensure homeowners you will get the best deals available for their your purchase and refinancing transaction.
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