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Is a mortgage holiday coming to Canada?


According to the BBC and multiple news sources https://www.bbc.com/news/business-51817947, U.K. bankers are providing mortgage holidays and adjusting the costs of other banking services to assist their customers in dealing with the impact of Covid-19. 

The U.K. Banks are also announcing additional support for affected business.

There do seem to be some challenges. For example, how will bankers decide who should benefit and who should not? How long should customers have before they resume their payments? How will they deal with new borrowers? The advice is to receive these commitments in writing so that credit is not damaged and misunderstandings do not occur.

Similar measures are being implemented in Italy and considered elsewhere in Europe. This is wise, foremost because it avoids government intervention and stifling regulation.

For landlords who might enjoy not making payments while still collecting rents, legislated rent holidays for tenants might be in the works.

So far, all we have heard from Canadian banks is their staffing decisions and some vague thoughts about helping. https://www.td.com/ca/en/personal-banking/covid-19/

Stay tuned as events unfold. These will have a major impact on the Spring housing market in Canada.

For an up-to-date conversation about mortgage events, please contact me directly.






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