Some unspecified “new tools” might be needed to help homeowners get through the COVID-19 pandemic once federal financial aid programs end, according to the Canada Mortgage and Housing Corporation.
“As the end of the initial six-month deferral period from the beginning of the pandemic approaches, we recognize the need to continue to monitor this diligently and potentially develop new tools with our partners to help Canadians during this unprecedented pandemic,” CMHC said in a statement to The Financial Post. “This work is ongoing and we will provide Canadians with updates as they become available.”
A recent survey by the Canadian Credit Union Association has noted that CMHC might consider extending amortization and amortization periods, implementing special payment arrangements, and/or adding missed payments to mortgage balances.
The CCUA study found that at least 78.79% of credit unions approve of the “expansion” of these policy tools.
The support stemmed from the fact that a significant portion of the financial institutions surveyed did not consider the current mortgage deferral period as “sufficient,” said Michael Hatch, vice president of government relations for the CCUA.
The Crown corporation is “looking at what the options might be from that angle and we hope that they’re able to put something together soon because that timeline is approaching,” Hatch said.