Kamran Malik and his wife Nasira and daughter Rida photographed outside their condo in Scarborough, Ontario, April 1, 2020. Mr. Malik closed his restaurant in Whitby, Ont., early in March to help prevent the spread of the COVID-19 outbreak.After Kamran Malik’s online application for a mortgage deferral was denied, he called his local branch in Toronto’s east end.
For Mr. Malik, visiting the branch helped his case. With social distancing in place, the adviser reviewed his banking profile but did not ask him any additional questions, he said. The application was submitted on his behalf and a few hours later, Mr. Malik received a phone call that he had been approved for a two-month deferral on interest and principal.
Incurring the additional cost is worthwhile if the only other alternative is to default, says Rona Birenbaum, certified financial planner and founder of Toronto-based financial-planning firm Caring for Clients. And since banks pay interest on deposits, bonds and other financial products that finance loans and mortgages, customers should not expect a cost-free payment holiday, she said.
“Part of the problem right now is that you can’t even get through to your bank, and one of those reasons is because there are a lot of people calling for this deferral who really aren’t even eligible at this point," Ms. Birenbaum said.
globeinvestor Yeah....but scotiabank. Is there for you....while they get huge cuts from The Bank of Canada.
globeinvestor From my understanding, credit score could possibly suffer if mortgage payments are deferred. Hoping banks can provide increased amortization period as an alternative option