Stephen  Sun

Stephen Sun


RE/MAX Realtron Realty Inc., Brokerage*

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Debunking the 5 BIGGEST mortgage deferral myths for Canadians!

Watch this! As I break down the FIVE (5) biggest myths for Mortgage Deferral program for Canadian during the COVID-19 Crisis.

1. Mortgage deferrals only apply to principal residences!

    a. Mortgage deferrals applies not only to residential properties, but also commercial properties.

    b. The government understands that as a landlord, your tenant may have trouble paying rent. 

    c. Each bank sets their own criteria but landlords are not excluded.

2. Mortgage deferrals are costly!

    a. Big misconception. It’s a cheaper way to delay your mortgage payment.

    b.  For example, supposed you need to defer your mortgages for 6 months and you are paying $2,000 a month, the total amount deferred is $12,000.

    c. At 3% and using simple interest, the cost of your interest is only $360 a year.

    d. Say you have 20 years left, using simple math, the cost of the interest is only $7,200 if you never catch up over 20 years.

    e. If you take advantage of mortgage prepayment or ballon payments, you can have it paid off in the current term then your additional interest is minimal.

    f. Better than paying the mortgage and can’t afford grocery and you need to borrow from line of credit or personal loans or worst yet credit card (18-25%).

3. Mortgage deferrals may affect credit ratings!

    a. No it will not

    b. It’s an agreement between you and the bank so no effects on your credit score.

4. You’ll need to proof you have a loss of income!

    a. Many banks do not ask questions. Initially there were many miscommunications.

    b. The program is designed so that most borrowers will qualify.

    c. They may need to perform a credit check as part of approval process.

5. Mortgage deferrals is a scam by the banks to charge more!

    a. It’s a program for those who truly need their money right now.

    b. If you don’t need to defer, don’t use it.

    c. But if it means paying mortgage or putting food on the table, the program is very beneficial at a small cost to the borrower.

    d. Definitely assess your own ability to repay the deferred amount.

There is still time, banks are offering this until June 2020

If you have further questions, we have qualified mortgage professionals that can help you or contact your bank and they can provide you with much more accurate information based on your particular situation.

Or feel free to reach out to me via email: or call me at 416-617-9997.

Debunking the 5 BIGGEST mortgage deferral myths for Canadians!