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What to Do in October When Your Mortgage Payment Deferral Ends




It's October. Did you defer mortgage payments? It could be time to re-start them again.

Here's what to do if:

  • You'll make a mortgage payment in October

  • You need more time

  • You're in a really tough spot and don't know what to do

Keep reading for what to do next.


1. If you can now afford payments


That's great! Confirm the next payment date and amount with your lender - and get it in writing. Mark your calendar and make sure the payment goes through properly. Check your credit report in 2 months and report any errors right away.


2. If you need an extension


Some lenders may consider this request, so try asking for more time. Be prepared to show bank statements and other relevant documents proving that you can't pay. Explain how you plan to begin repayment, and when. Give them reasons to say "yes".


3. If you can borrow elsewhere


Can you borrow from family, a credit card, or line of credit? This could help tide you over for a few months. Ask if there's a low interest or minimum payment option. Avoid pay day loans that have a low repayment rate.


4. If you have other debt


Consider refinancing. It could help to lower the overall monthly cost if the payments are now too high. The interest might be lower, too. You'll need income to qualify for a mortgage refinance, but it could also be possible to restructure debt without touching your mortgage.


5. If you have home equity


Some lenders will give you a 2nd or private mortgage without proof of income, at higher rates and fees. Payments are typically interest-only for 3-12 months, so you'll need an exit strategy for when that ends. A mortgage broker can help you plan for this.


6. If you must sell


Do it on your terms, before the bank decides to. You'll get a better selling price, recover more money faster, and protect your credit. This will be less stressful and give you more options for the future, including buying again.


No matter what


Ask for help as soon as possible. Stay in the driver's seat - taking early action will help to keep your options open for future. Keep detailed records. Advocate for yourself and ask questions about anything you don't understand. Be proactive and keep the lines of communication open.


You're not alone


I'm here to help, and you might have more options than you think. Email lauren@vinegroup.ca or book a call now if you need advice. Here's what past clients say about my service.


Stay safe and thanks for reading.

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