{"id":6540,"date":"2021-03-23T16:11:31","date_gmt":"2021-03-23T21:11:31","guid":{"rendered":"https:\/\/pierreroy.com\/?p=6540"},"modified":"2021-03-23T16:13:21","modified_gmt":"2021-03-23T21:13:21","slug":"what-are-my-options-if-i-am-no-longer-able-to-pay-my-mortgage","status":"publish","type":"post","link":"https:\/\/pierreroy.com\/en\/2021\/03\/what-are-my-options-if-i-am-no-longer-able-to-pay-my-mortgage\/","title":{"rendered":"What Are My Options If I Am No Longer Able to Pay My Mortgage?"},"content":{"rendered":"

During the Covid-19 pandemic, Canadian financial institutions provided their clients with the option of deferring their mortgage payments for six months in order to help them through changes in their income or job loss. However, this mortgage deferral period came to an end in October 2020, and many are finding themselves unable to start making their mortgage payments. If you find yourself in this situation, below you will find the different options that are available to you depending on your personal circumstances.<\/p>\n

What to Expect after Your Mortgage Deferral Period Has Ended<\/h2>\n

After your mortgage deferral period is over, you will be expected to resume making your mortgage payments as well as pay the ones that you had deferred. Depending on your financial institution, the manner in which you pay the deferred payments will either be by extending your mortgage amortization period, increasing your regular payments, or adding the skipped payments to your mortgage balance at the end of your term. Although your payments were being deferred, financial institutions still charged interest on the amount owed. This means that you will likely see an increase in interest fees, since those interest charges were added to your mortgage balance. Therefore, in most cases, you might find yourself with a higher mortgage payment to make each month. This can be especially difficult for those who have not found a solution to the changes in their income or loss of employment.<\/p>\n

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Even if you have financial problems, it is possible to keep your home.<\/p><\/div>\n

You may be able to extend your mortgage deferral if you meet certain qualifications. However, the longer you defer, the more you can end up paying in the long run. Rest assured that there are other options available to you that don\u2019t involve losing your home if you continue to feel burdened by financial hardship.<\/p>\n

Would Declaring Bankruptcy Be a Good Option for Me?<\/h2>\n

The thought of declaring bankruptcy<\/a> might seem daunting or scary since there are many myths surrounding it, but most people who have undergone the process will likely tell you that it was the best decision they could have made<\/a> in order to achieve financial stability. The biggest fear that comes with declaring bankruptcy is the thought of losing one\u2019s home. But that doesn\u2019t have to be the case!<\/p>\n

In fact, whether or not you lose your home depends on the equity available. If there is equity, other solutions should be considered. However, if there is little to no equity, you could potentially keep it. The manner in which equity is calculated is by subtracting your mortgage balance from the amount at which your house is valued. After determining the equity, your Licensed Insolvency Trustee will share with you his opinion. You could be able to keep your home as long as you can continue to make your payments on it.<\/p>\n

What If There Is Equity, but You Still Want to Keep Your House?<\/h2>\n

There are still ways of going about keeping your home even if there is equity in the house. These options include:<\/p>\n