Mortgage Scout: COVID-19 Financial Assistance Resource
Updated: 6 days ago
The COVID-19 pandemic has impacted all of us and has left many of our clients concerned, searching for answers. We've been fielding calls and emails over the last 48 hours about what the various lenders are doing to support clients and directing clients to resources established by these respective institutions.
In an effort to assist our customers, we've put together this article to consolidate our findings and better assist those affected by our current economic environment.
Mortgage Lender Contact Resource:
Attached below you will find a table which outlines the contact information for each of our respective lenders as well as any press release details currently available to our clients.
Interest Relief: Canadian Banks reduce Prime lending rate to 2.45%
Bank of Canada's cut of the overnight rate of 0.50% on March 27th, 2020, has triggered all the major financial institutions to reduce the prime lending rate by 0.50%, for a new effective rate of 2.45%.
Since prime lending rates have an impact on car loans, business loans, lines of credit and mortgages, this will translate into a lower cost of financing for the everyday consumer. Furthermore, for clients and small businesses depending on lines of credit facilities as a means of bridging them through the challenges of today's environment, that will also translate into lower payments as these facilities typically come with interest-only payment options.
Aid Package For Canadians and Businesses
Prime Minister Justin Trudeau has announced a massive $82-billion aid package to help Canadians and businesses, including income supports, wage subsidies and tax deferrals amid the global COVID-19 pandemic.
The emergency aid plan includes:
📌Temporarily boosting Canada Child Benefit payments, delivering about $2 billion in extra support.
📌New Emergency Care Benefit of up to $900 biweekly, up to 15 weeks, to provide income support to workers who have to stay home and don't have access to paid sick leave. The measure could disburse up to $10 billion. A six-month, interest-free reprieve on student loan payments.
📌Doubling the homeless care program.
📌Extending the tax filing deadline to June 1.
📌Personal taxes: Allowing taxpayers to defer tax payments until after Aug. 31 amounts that are due after today and before September. This applies to personal taxes & Corporate taxes as well as installment payments.
Sincere thanks to our partners at E&E Professional Accountants for their summary of these changes. Additional details related to personal and business accounting can be found by clicking the E&E Professional Accountants link.
How to Apply for Employment Insurance (EI) Benefits
To apply for EI benefits, you can visit by clicking the link provided below. Afterwards, you can apply to have the one-week waiting period waived by calling the government's toll-free number at 1-833-381-2725, or teletypewriter at 1-800-529-3742.
It is also possible to apply in person at a Service Canada office, however, given the risk of exposure, self-service options would be most ideal.
How to defer Auto Loan/Lease Payments
JD Power recently published a post updating the general public on the relief efforts specific to each of the major automotive manufacturers. To access this article, simply click the link noted below and scroll down to your respective vehicle's manufacturer.