Rent, Evictions and other COVID-19 Related Information

This is an unprecedented time for us all and being an investor, it can be unnerving when you are unsure about how this will affect your investments when it comes to rent payments, mortgage payments, the real estate market and your over all investment.

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Mortgage Deferral

I have seen an alarming amount of tenants claiming they will refuse to pay rent simply because “Landlords do not have to pay their mortgage.” Many tenants seem to be misinformed on what a mortgage deferral actually is and how it works. As many of us know, several banks are offering a mortgage deferral up to 6 months but this does not mean Landlords do not have to pay their mortgage. Depending on your lender and tenant rent payments, you may not even qualify for a deferral. At the end of the deferral, you will have to resume payment. In addition, the interest that hasn’t been paid during the referral period continues to be added to the outstanding principal of your mortgage. In the end, this can increase the total amount you owe after the deferral.

Bank of Montreal, CIBC, TD Canada, National Bank of Canada, RBC Royal Bank, Scotiabank and Sudbury Credit Union are some of the lenders participating in mortgage deferrals. If you feel you are unable to pay your mortgage, please, contact your lender as soon as possible. CMHC offers some explanation on mortgage deferrals if you are still unsure if a mortgage deferral is right for your situation. Read more here.

Evictions

There are Canadians across the country who have lost their jobs because of the COVID-19 pandemic and are struggling financially. Ontario has ordered to stop all eviction during this state of emergency because no one should lose their home during a pandemic.

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