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COVID-19 Update

Our dedicated specialists are here to help

We care deeply about our customers and we are here to work with you through difficult times to help you manage some of your largest assets. If you feel you may be faced with financial hardship as a result of the ongoing COVID 19 situation, we want to help. We encourage you to email us your questions today so that we can start working on a plan together.

Depending on your situation, you may be entitled to payment deferral options or other solutions, such as refinancing your mortgage to consolidate debt and free up cash flow. If you’re within 90 days of your maturity date, we may even be able to offer early renewal options that can provide additional peace of mind at a time of uncertainty.

If you have questions about your mortgage, or to explore your options, email the Mortgage Servicing Team at mortgageservicing@communitytrust.ca.

If you have questions about your registered accounts, contact our Client Services Specialists (CSS) team at is@communitytrust.ca.

Our team members will review your request and get in touch with you.

Before you reach out to us, refer to our Frequently Asked Questions (FAQ) for more assistance.

If you are facing financial hardship as a result of COVID-19 and want to know if a payment deferral option is right for you, we encourage you to review the following Frequently Asked Questions. It’s important to understand the impacts of a payment deferral on your short- and long-term financial well-being. We’re here to work with you through this challenging period and support you to maintain your financial stability and security.

The health and safety of our employees, customers and business partners remains our top priority. Community Trust has taken precautionary steps to ensure your transactions are processed smoothly and efficiently without compromising the safety of our customers and staff.

To that end, we are currently limiting in-person interactions and we encourage our customers to use electronic means such as phone and email to connect with us. Although we are limiting face-to-face meetings, we stand firm on our position of upholding service levels and to being there when you need us.

Your mortgage payment is typically made up of two components: principal and interest.  Your principal is the amount that you owe, i.e. your mortgage balance.  The interest is what you are being charged on the amount you owe.

When you choose to skip a mortgage payment, you are choosing to defer payment of the principal component until a later date, and you are converting (or adding) the interest portion to your principal.  By adding the interest to your principal, you are increasing the mortgage balance on which interest is subsequently charged.

Once you are able to resume your monthly payments, the monthly amount and the interest rate for the remainder of your mortgage term remain unchanged.

We understand that these are difficult times and we are here to help. We are committed to working with you on a case-by-case basis to find a flexible solution that best suits your needs.  If you are facing financial hardship as a result of COVID-19, a mortgage payment deferral option may be available to you for up to 6 months.

In order to qualify for a payment deferral, you may be required to provide third party documentation of the financial hardship. This may include a letter from your employer or a supportable explanation of your loss of income. If you’re not sure whether you qualify, our mortgage specialists are available to discuss these options with you.

Every situation is different and will be evaluated on a case-by-case, and month-to-month basis in order to review your financial situation and make the best possible recommendations.  Depending on your circumstances, you may be able to defer up to a maximum of 6 monthly payments. You will be required to follow up with us on a monthly basis so that we can review your financial situation and assess the need for ongoing payment deferrals.

While there are no up-front fees for deferring your mortgage payment, by adding the interest to your principal, you may significantly increase your cost of borrowing over the life of your mortgage.

 

Here’s an example of the costs associated with a 1-month payment deferral:

Make the payment Skip the payment
Principal Balance on March 31st, 2020 $400,000.00 $400,000.00
Monthly Payment (Principal + Interest) $2,104.09 0
Interest paid $1,304.24 0
Principal paid $799.84 0
Remaining Balance April 30th, 2020 $399,200.16 $401,304.24
Remaining Amortization 24 years, 11 months 25 years, 2 months
Total Interest Costs Over the Life of the Mortgage $231,222.30 $233,463.75

In this example, it will take you 3 months longer to pay-off your mortgage and could cost you up to $2,241.45 more interest over the life of your mortgage.

 

Here’s an example of the costs associated with a 6-month payment deferral:

  Make the payments Skip the payments
Principal Balance on March 31st, 2020 $400,000.00 $400,000.00
Monthly Payment (Principal + Interest) $2,104.09 0
Interest paid – average (monthly split between interest and principal will vary) $1,304.24 0
Principal paid – average (monthly split between interest and principal will vary) $799.84 0
Remaining Balance September 30th, 2020 $396,065.85 $407,895.00
Remaining Amortization 24 years, 6 months 25 years, 11 months
Total Interest Costs Over the Life of the Mortgage $231,222.30 $244,997.25

In this example, it will take you 17 months longer to pay-off your mortgage and could cost you up to $13,774.95 more interest over the life of your mortgage.

While there are no other costs associated with payment deferrals, our standard mortgage servicing fees continue to apply.  You can review them here “Schedule of Additional Costs”.

Arranging to defer your payments until a later date is not considered defaulting on your mortgage and will not have an impact on your credit score.

Depending on your situation, other solutions such as refinancing your mortgage to consolidate debt and free up cash flow may be available to you. If you are within 90 days of your maturity date, we may be able to offer early renewal options that can provide additional peace of mind at a time of uncertainty.

We care deeply about our customers and we are here to work with you through difficult times to help you manage some of your largest assets. If you feel you may be faced with financial hardship as a result of the ongoing COVID 19 situation, we want to help.

Email us at mortgageservicing@communitytrust.ca so that we can start working on a plan together. Be sure to include your name, property address, Community Trust mortgage number and a detailed explanation as to how you are being financially impacted by the COVID-19 situation (job loss, reduced work hours, loss of income, self-isolation, etc.).

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