It’s impossible to plan on many of the unexpected things that life can throw at us; job loss, illness, divorce, or as we’ve seen recently with a global pandemic like Coronavirus (COVID-19). There are many reasons why you may need to break your mortgage early, and while it’s not something you plan for when you first sign your mortgage term, it is something that’s increasingly becoming more important to consider over the interest rate itself.
COVID-19 Mortgage Facts
The big question is whether it’s better to take a variable rate or fixed term.
While the problems in the credit market were obvious for months, the COVID19 crisis further exposed the significant problems in the system.
All customers who are currently in good standing and have been impacted by COVID-19 can apply for mortgage relief from their bank. COVID-related mortgage deferral is available for an indefinite period and customers do not face a deadline for having to seek relief.
Mortgage payment deferrals can help homeowners that have been left without a job or with reduced hours during times of financial hardship. Homeowners facing financial stress may be eligible for a mortgage payment deferral of up to 6 months to help ease the financial burden.