Tuesday, April 21, 2020

Toxic Loans in Ontario

That Toronto Home owner's could be thrown for such hardship in just 4 weeks speaks to how over extended we truly are;

Check this out:
  • Over half (54%) of homeowners have asked their lenders for mortgage assistance, like payment deferral, according to a Forum Research poll. Says mortgage broker/blogger Rob McLister in response: “Given 60% of homeowners have mortgages, that’s the majority of people with mortgages. It’s hard to wrap one’s head around that high of a number given most people have jobs and fallback resources…But suffice it to say, a lot of people feel they’re in need of mortgage help.”
  • Six per cent of people have already missed a mortgage payment, while 14% of renters couldn’t pay their landlords. (Over half of all renters asked for relief.)
  • Somewhere between 600,000 and a million homeowners have requested, and received, six months of payment deferrals. This is costing the banks close to $1 billion in monthly cash flow, and all of that money is being added to the debt that families will have to finance.
  • One bank alone – CIBC – has approved 250,000 deferrals and payments on $20 billion worth of home loans, credit cards and LOCs. The woman in charge of banking operations is frank. She calls it “toxic.”  https://www.greaterfool.ca/2020/04/21/no-good-choice/

If you struggled to make your payments before; how will you handle these changes in priorities, inflation, increased expenses and probably increaseed interest rates?

Time to refinance?


Better call Vee Thompson    Hurry.   

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