Scarborough town centre condos . Canadians who delayed applying for a mortgage six months ago. In order to reduce the financial pressure of the epidemic on homeowners, a number of Canadian banks have launched a policy of delaying mortgage payments for the benefit of the people.
Last week, the Betterdwelling website quoted data from the Canadian Banking Association (CanadianBankers Association,CBA) as saying that by the end of September, 498000 of the 795000 homeowners in Canada who had applied for mortgage delays had resumed normal repayments, accounting for 63 per cent of the total. If you take a closer look at the monthly report, you will find that the crisis of mortgage delays began to improve as early as the summer.
According to CBA, the number of homeowners opting for deferred mortgage payments rose from March to June, reaching a peak in July. However, it has declined steadily since July, and a considerable amount of mortgage loans have returned to normal repayment every month. By the end of September, only 297000 homeowners were still delaying mortgage payments. These figures are more optimistic than the forecasts of many people in the industry.
Since the COVID-19 epidemic this spring, there have been a lot of negative voices in the city about the property market. Some people say that if the economy does not recover after the end of the six-month mortgage delay, there may be a large number of defaults in the market, and a large number of homeowners will be forced to buy homes and could lead to a housing market crash. Perhaps it is with this in mind that CMHC predicts that house prices could fall by 18% this year. In an effort to reduce risk, the regulator even tightened its mortgage policy in July.
But now it seems that the reality is not so terrible, the sell-off wave and the collapse in house prices have not occurred, on the contrary, the property market is still rising against the market during the epidemic period.
500000 owners start paying their mortgages again. How do you do that? Of course, ideally, the owner’s work and income will return to normal and can be repaid as normal as before.
But today, when the epidemic is still raging, many industries are still in dire straits, with Canada’s unemployment rate still as high as 8.9% in October. So how do the homeowners whose income has not recovered but return to normal payment of their mortgages solve the problem?