Real Estate

Rental property: Deferring Mortgage Payment due to COVID-19

  • Last Updated:
  • Apr 10th, 2020 8:22 pm
[OP]
Jr. Member
Jan 22, 2015
139 posts
14 upvotes
Toronto

Rental property: Deferring Mortgage Payment due to COVID-19

Folks, has anyone got mortgage deferred on your rental investment property? My tenants stopped paying rent because they lost job during Covid 19 Pandemic. Do we qualify for mortgage referral ?
Last edited by hammadarif on Apr 10th, 2020 12:01 am, edited 2 times in total.
5 replies
Sr. Member
User avatar
Jul 1, 2005
541 posts
149 upvotes
You should speak to your lender and tell them your story.
Deal Guru
Feb 29, 2008
14197 posts
10514 upvotes
Can you go into more detail on why they stopped paying?
Member
Jan 14, 2008
468 posts
262 upvotes
Toronto
as suggested above, talk to your lender, most have provisions in place to help defer the mortgage, depending on your principal outstanding (i.e. how much of it have you paid down already)

secondly, have you suggested your tenant to file for EI and CERB ?
Deal Addict
Dec 17, 2007
2359 posts
1333 upvotes
Alliston, ON
Depends on your lender, Scotia will let you defer your principal and up to 3 non-principle properties
Deal Addict
User avatar
Mar 25, 2012
1865 posts
1052 upvotes
Kelowna
gc99 wrote: as suggested above, talk to your lender, most have provisions in place to help defer the mortgage, depending on your principal outstanding (i.e. how much of it have you paid down already)

secondly, have you suggested your tenant to file for EI and CERB ?
To add to this, have you considered negotiating a temporary, COVID-19 rent reduction for your tenant to, say, 30-50% of their CERB or EI monthly payment amount? You do not need to profiting off, or even covering your cash flows, during this period. You are paying down an asset. Your tenant has no such luxury and is at, principally, your whims. As a landlord, you should have ample cash in the bank, enough to pay off the mortgage of at least one of your investment properties, in full, should the need arise. :)

Cheers,
Doug

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