What is a mortgage payment deferral ?

The Coronavirus crisis has left many homeowners in Canada without a job or with reduced hours and wondering how to pay their mortgage. Homeowners facing financial stress may be eligible for a mortgage payment deferral of up to 6 months to help ease the financial burden.

The COVID-19 Mortgage Payment Deferral program will be ongoing. You can apply at any time during this outbreak.

What is mortgage payment deferral?
Mortgage payment deferrals can help you during times of financial hardship — like unemployment or reduced employment due to the Coronavirus (COVID-19) outbreak.

The deferral is an agreement between you and your lender. Typically, the agreement indicates that you and your lender have agreed to pause or suspend your mortgage payments for a certain amount of time. It’s also known as a mortgage payment deferral agreement or mortgage forbearance agreement and it’s a temporary measure.

After the agreement ends, your mortgage payments return to normal and the missed payments — including principal and accumulated interest - are repaid.

How mortgage payment deferrals can help you?
A mortgage deferral helps you when you’re struggling to make your payments by allowing you to skip your mortgage payment for a specified amount of time.

Are the deferred payments erased or canceled?
The mortgage deferral agreement does not cancel, erase or eliminate the amount owed on your mortgage. At the end of the agreement, you will have to resume payment according to your regular payment schedule.

NOTE: The interest that hasn’t been paid during the deferral period continues to be added to the outstanding principal of your mortgage. This can affect the total amount you owe in accordance with the original payment schedule.

Do I need to repay the deferred amounts?
Yes, you’ll need to repay the amounts of the skipped payments including both principal and interest.

How do I repay the deferred amounts?
Details of the repayment will vary according to the specific lender and situation.

The interest on your mortgage that hasn’t been paid during the deferral period continues to be added to the outstanding principal of your mortgage. When your payments start again, your mortgage payment might be based on the total amount you then owe to pay off your mortgage in accordance with the original payment schedule.

IMPORTANT: Mortgage payment deferrals focus solely on your mortgage. It won’t affect other payments regularly withdrawn, like property taxes and life/disability insurance.

How do I know if I am eligible for a mortgage payment deferral?
Your lender — your bank or your mortgage professional — can tell you if you are eligible for a mortgage payment deferral.

Is CMHC helping with mortgage deferrals?
Yes, with the COVID-19 outbreak, we are allowing lenders to offer deferred payments for insured mortgages.

All mortgage insurers offer a number of tools to lenders that can help you when you’re in financial difficulty and are struggling to meet your mortgage obligations.

What if my mortgage isn’t CMHC-insured?
Any borrower facing financial difficulty should contact their lender — your bank or mortgage professional — to learn what options are available.

What are my options?
The payment deferral is for people who will struggle to make their next mortgage payment. If you are in a position to make your payments, you should.

If — at any point in this crisis — you think you won’t be able to make your regular mortgage payment, it’s important for you to take quick action. Contact your bank or mortgage professional immediately before you miss a payment.

 

Source: Canada Mortgage and Housing Corporation

Steps to investing in Real Estate

Property is widely considered a great investment and a powerful wealth-creation strategy. but you need to buy well to secure the best return. And as with anything in life, there are no guarantees.

Yet if you back yourself with the power of knowledge and employ the right investment strategy, there is no reason why property investment can’t be a powerful wealth creation strategy for you and your family.

If real estate investment is on the horizon for you, try to keep the following tips in mind, and you’ll be well on track to securing yourself a great investment.

Know your limits
Overstretching your budget is a surefire way to cripple your chances of doing well in the property market.

Whether you are a seasoned investor or new to the market, there is nothing more important than determining your budget and understanding how much you can afford to borrow.

A mortgage broker can work with you to assess your borrowing capacity and ensure you embark on an investment strategy that fits your budget. With pre-approved finance, you’ll also be ready to strike when the right property comes along.

Location, location, location
When investing in property, the location of your potential purchase should always be front of mind.

Be sure to consider areas that are backed by strong population growth, employment opportunities, development prospects, and solid infrastructure projects.

A great idea is to take a drive around any areas you’re interested in and note all local schools, transport hubs, and shopping centers.
 
A property that is within proximity to such key amenities is usually in higher demand for both tenants and future buyers, which should maximize your prospects of achieving solid capital growth and stable rental income.

Understand the tenant
The location and type of property you purchase will be a strong motivating factor in the type of tenant you are likely to attract.

If you are seeking a long tenancy agreement with a family, it may be wise to consider areas that support such a demographic.

Once again, consider a safe area surrounded by a range of schools and shopping centers to support the needs of your target market.

While there are no guarantees with any investment strategy – understanding these three essential aspects of successful property investment should get you closer to ensuring good returns on your next purchase.

Using a Greenhouse for Early Spring Planting

With spring just around the corner, many homeowners have gardening on their minds. The seed catalogues are well-worn from repeated flipping of pages. Seeds have been ordered, and some early bedding plants have been started. Many are itching to get outside and start seeding the garden, but it is too early. The days are warming but the nights remain too cold to allow seedlings to survive.

One way out of this dilemma is to build your own portable greenhouse. A simple greenhouse can consist of some wooden frames that are bolted together and assembled in the garden. The greenhouse can be easily dismantled and folded flat for storage. It can be built to any size specifications, depending on your needs. Many home-depot stores sell preassembled DIY kits that can be put together easily in one afternoon at very reasonable prices.

The floorless greenhouse allows light and heat to enter but prevents some heat from escaping. Thus, the temperature inside the greenhouse increases during the day. The soil over which the greenhouse is placed stores some of this heat. During the night, when the outside temperature is cold, the heat gradually escapes from the soil but the greenhouse holds enough of this heat to prevent frost from damaging the plants inside.

The system works well if the air temperature is not too cold, though additional frost protection can be achieved by using internal and external curtains.

The greenhouse can be set over the garden area in the early spring (March). For best results, the garden should be located in an area that receives full sunlight. As the air temperature builds up inside, any snow covering will melt and the ground will begin to warm. By mid to late March it is often possible to seed directly into the soil "floor" of the greenhouse. Only plants that tolerate a cool growing season, can be seeded early. Warm-season crops such as require much more warmth than this greenhouse can provide.

As the days become warmer, too much heat may build up inside the greenhouse. It is important not to let this happen, or you might lose your crop. The simplest solution is to leave the greenhouse door partly open to provide ventilation. When the days become quite hot, remove the greenhouse. In September it can be taken out again and placed over the garden patch to extend the growing season

Spring Cleaning Tips

Spring cleaning is an old tradition rooted in many cultures. It is the process of thoroughly cleaning a house from top to bottom once the weather has lost its winter chill.

Spring cleaning origins date back to prehistory, and represent the time when it was easiest to conduct a good cleaning of living spaces. Extra light allowed people additional time to truly see the messy state of their caves, huts, or teepees. Warmer weather also meant that people could get things thoroughly dry. In agrarian societies, spring cleaning usually coincides with the beginning of planting. Spring was an ideal time to organize seeds and get the home ready for the busy months ahead. There are also several suggested origins for spring cleaning based on religious practices. For many of us, the warmer weather inspires us to want to take the time to get the house in order after the winter months.

In the past, inadequate heating in homes and small living spaces often meant that certain types of cleaning had to wait for spring. Before modern dryers, washing drapes or comforters was complicated by cold weather and tight living quarters. Those in cold climates had no choice but to wait for warm weather to hang laundry outdoors to dry.

Today, the thought of taking a weekend or even a day to turn our houses upside down seems a near impossibility. Who has the time? Besides, our modern centrally heated and cooled, climate-controlled homes don’t get oily, sooty, or smoky, and our washing machines and vacuum cleaners help keep the dirt from sneaking in. In spite of this, thorough cleaning of your house offers many health advantages that you should not ignore. During the cold days of winter, the quality of indoor air can be two to five times worse than outdoor air. Those seemingly harmless dust bunnies locked in our air-tight homes - and the daily use of many chemical cleaning products  - contain airborne toxins that can aggravate respiratory and other health problems.

Revitalize your hibernating home with these simple suggestions:

1. Work from the top down, inside to outside, to avoid getting what you just cleaned dirty again.
2. Do one room, even one area of one room, at a time to avoid unfinished jobs. The satisfaction of seeing one room sparkle will make the hard work feel like it's worth the effort.
3. When tidying, reduce trips around the house by temporarily depositing items in one spot to but not at their final destination.
4. Do two things at once. While laundry is going on, scrub the shower stall.
5. Make small repairs. If you're not handy, hire someone.
6. Invest in good rubber or vinyl gloves to protect your skin and nails.
7. Dust before vacuuming or cleaning the floor. Try feather or lambswool dusters, especially extendable ones for reaching above the window and door casings and into corners. Household rags are invaluable for jobs requiring a damp cloth – natural fibers work best.
8. Buy mops with a squeeze mechanism and a decent-size heavy-duty pail – one with a measuring scale helps get soap-to-water ratios correct.
9. Use a Swiffer for light dusting, or your favorite broom or vacuum attachment to clean hardwood floors. Then damp-mop with a mild cleaner such as Murphy Oil Soap.

Home Prices Inch Up in March as We Enter the Spring Market

WATERLOO REGION, ON (April 5, 2023) — Sales volume through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR) set another low last month, with 611 homes sold in March, representing a decrease of 38.4 per cent compared to March 2022 and 33.6 per cent below the previous 5-year average for the month.

“Sales activity was well below average in March, and while the number of homes sold is down, sale prices have increased modestly month over month,” says Megan Bell, president of WRAR. “With borrowing costs stabilizing and lenders promoting more appealing rates, I think we will see more buyers coming off the sidelines this spring, adding demand to our already popular Waterloo Region and pushing home prices up slightly.”

Total residential sales in March included 356 detached (down 39.9 per cent from March 2022), and 126 townhouses (down 29.6 per cent). Sales also included 86 condominium units (down 32.8 per cent) and 42 semi-detached homes (down 53.3 per cent).

In March, the average sale price for all residential properties in Waterloo Region was $779,017. This represents a 18.6 per cent decrease compared to March 2022 and a 2.4 per cent increase compared to February 2023.

• The average price of a detached home was $910,152. This represents a 17.4 per cent decrease from March 2022 and an increase of 2.9 per cent compared to February 2023.
• The average sale price for a townhouse was $640,484. This represents a 19.9 per cent decrease from March 2022 and a decrease of 0.6 per cent compared to February 2023.
• The average sale price for an apartment-style condominium was $482,882. This represents a decrease of 15.2 per cent from March 2022 and an increase of 5.3 per cent compared to February 2023.
• The average sale price for a semi was $700,208. This represents a decrease of 18.2 per cent compared to March 2022 and an increase of 4.9 per cent compared to February 2023.

“This is a peculiar market. While we certainly will not have the same volume of sales as in 2022, demand remains strong. For those that were previously hesitant to sell their properties, March’s slight uptick in sales prices is a good indication of the continued pent-up demand within the Region and we do not anticipate this slowing down anytime soon,” says Bell. “These and other shifting influences mean it has never been more important for buyers and sellers alike to work with a local REALTOR® to help provide expertise during the homebuying and selling process.”

While on a year-over-year basis, prices have come down close to 20 per cent, they are up compared to two years ago.

There were 859 new listings added to the MLS® System in Waterloo Region last month, a decrease of 44.1 per cent compared to March of last year and a 30.5 per cent decrease compared to the previous ten-year average for March.

The total number of homes available for sale in active status at the end of March was 716, an increase of 17.2 per cent compared to March of last year and 42.4 per cent below the previous ten-year average of 1243 listings for March.

The number of months of inventory is up 85.7 per cent compared to March of last year, but still historically low at 1.3 months. The number of months of inventory represents how long it would take to sell off current inventories at the current sales rate.  

The average number of days to sell in March was 19, compared to 8 days in March 2022. The previous 5-year average is 15 days.