Getting through the COVID Economic Insecurity – Short term solutions may not be enough.
COVID 19 pandemic has played havoc in so many areas of our daily lives. Routines have been upended. Social contact has been limited. Activities have been suspended. Jobs have been affected. This has caused a substantial amount of anxiety for many people. Stress on so many different levels.
It can be argued, however, that the greatest stress facing many of us due to a global COVID pandemic has been the financial stress. More specifically, the ongoing anxiety for many when it comes to the question of how to continue to pay their mortgage when household income may be down substantially.
Genworth Canada may have the solution to keeping you securely in your home with creative solutions to address your mortgage concerns
Yes, the Government did introduce some initiatives to help ease the financial burden for homeowners with the allowance of deferred mortgage payments for up to 6 months. It would be a disservice to suggest that this help was not welcome news to many mortgage holders across the country.
The key to keeping in mind however is that this represents short-term bailout measures. It does not address the longer-term worry of how to resume and continue to pay the mortgage moving forward with reduced income and job losses for many. As the 6-month mark is fast approaching, more than a band-aid fix is required for homeowners across the country.
What is Genworth Canada – Can they play a role in reducing mortgage economic woes?
Genworth Canada is the largest private residential mortgage insurer in the country. The main role of Genworth Canada is to provide default insurance to lenders. This offers lenders the opportunity to set up extensive default insurance through Genworth to enable their clients to cover mortgages in the event of economic difficulties. You have no doubt heard of The Canadian Mortgage Housing Corporation (CMHC). The CMHC also plays a similar role to that of Genworth Canada in that it ensures mortgages, in particular mortgages that have less than the Twenty Five percent downpayment on a given mortgage. The main difference between these two organizations is that Genworth is privately owned, while the CMHC is a government body.
Another key to Genworth Canada’s role in the mortgage market is the different programs that they are able to offer homeowners. One such program that can ease the economic pressure on homeowners, beyond the deferral program currently offered by the government, is the Homeowners Assistance Program ( HOAP).
The Homeowners Assistance Program – How it can work for you in economically challenging times like these?
If you are feeling overwhelmed with all the expenses that are mounting, in addition to the ever-present concern of covering monthly mortgage payments, the time to take action is now. Contact your lender and ask them about the advantages of the Genworth Homeowner Assistance Program. Your lender can take the steps necessary to add default insurance through Genworth and gain access to the help available through the Homeowner Assistance Program.
You may also be going through other life events that have impacted your ability to pay the mortgage, such as a difficult divorce or an unanticipated injury or illness. By asking your lender to cover you through Genworth you will be able to take the steps necessary to mitigate some of the economic impacts of such life events.
Just exactly what options are available?
Options, options, options. If one thing remains true through any life event, knowing you have options available is crucial. The Homeowner Assistance Program provides options for homeowners who may need help during these uncertain times. What options are these exactly?
- Restructure your current mortgage- by looking at your current mortgage and making changes to it to ease short term economic burden represents a very valuable way to help navigate troubled economic waters while allowing you to keep your most valued investment- your home
- Defer payments– similar to what the Federal Government has offered during the pandemic, the Homeowners Assistance program can allow a homeowner to defer payments to help get over an economic bump in the road.
- Increase the Amortization period- Sometimes being able to lengthen your existing mortgage loan can lower your monthly payments. This option is also available through Genworth’s Homeowners assistance program.
- A partial or shared payment plan– by helping with payments or allowing the homeowner to be responsible temporarily for only part of the monthly mortgage payment is another beneficial option that can be worked out through Genworth’s assistance.
There is help available – navigating the COVID pandemic together
No-one is pretending that getting through the current COVID pandemic will be easy from a financial point of view. So many have been adversely affected financially during these uncertain times that we find ourselves in.
When the going gets tough, you must formulate a plan and utilize all the resources that are available. As a lender, there must be an effort to direct homeowners towards established programs that can ease the financial burden and ensure homeowners remain in their valued homes.
As a homeowner, speak to your lender about any financial pressures you may be facing and have them look into programs such as the Homeowners Assistance program to help find a reasonable solution to get through this trying economic period.
Take steps to protect your most valuable asset and top investment- your home.
If you would like to talk with one of our team members, you can do so here.
We’ve even done a podcast covering the COVID pandemic and how to overcome the stress, here.
