Real Estate

Rental unit and mortgage deferral

  • Last Updated:
  • May 9th, 2020 6:47 pm
[OP]
Deal Addict
User avatar
Apr 8, 2003
1570 posts
169 upvotes
Downtown Toronto

Rental unit and mortgage deferral

Hi,

Would like some help around this question. I would still get a banks opinion on the matter but would like to hear what the RFD community thinks.

Say I had a tenant that was living with a roommate (subleted) at my rental. What if the subletted tenant were impacted by a layoff and decided to leave due to financial reasons. As a landlord, do I have a case for mortgage deferral because this one person now has to pay 100% by themselves? This solo person was only impact financially by COVID due to the person being laid off and moving out and their financials are still in check.

Thanks!
5 replies
Deal Guru
User avatar
Mar 23, 2008
13002 posts
9929 upvotes
Edmonton
ChiGGz wrote: Hi,

Would like some help around this question. I would still get a banks opinion on the matter but would like to hear what the RFD community thinks.

Say I had a tenant that was living with a roommate (subleted) at my rental. What if the subletted tenant were impacted by a layoff and decided to leave due to financial reasons. As a landlord, do I have a case for mortgage deferral because this one person now has to pay 100% by themselves? This solo person was only impact financially by COVID due to the person being laid off and moving out and their financials are still in check.

Thanks!
So you’re the landlord? How exactly are you negatively affected, if your tenant is still paying the full rent?

C
Deal Addict
User avatar
Mar 23, 2003
4472 posts
1149 upvotes
Hamilton
ChiGGz wrote: Hi,

Would like some help around this question. I would still get a banks opinion on the matter but would like to hear what the RFD community thinks.

Say I had a tenant that was living with a roommate (subleted) at my rental. What if the subletted tenant were impacted by a layoff and decided to leave due to financial reasons. As a landlord, do I have a case for mortgage deferral because this one person now has to pay 100% by themselves? This solo person was only impact financially by COVID due to the person being laid off and moving out and their financials are still in check.

Thanks!
The person that left, was his agreement with you in writing in any way?
If not, it has nothing to do with you.
It would be between the tenant and his/her roommate that left.

If the tenant you have an agreement with stops paying their rent then it becomes your issue.
Deal Guru
User avatar
Mar 23, 2008
13002 posts
9929 upvotes
Edmonton
ChiGGz wrote: Hi,

Would like some help around this question. I would still get a banks opinion on the matter but would like to hear what the RFD community thinks.

Say I had a tenant that was living with a roommate (subleted) at my rental. What if the subletted tenant were impacted by a layoff and decided to leave due to financial reasons. As a landlord, do I have a case for mortgage deferral because this one person now has to pay 100% by themselves? This solo person was only impact financially by COVID due to the person being laid off and moving out and their financials are still in check.

Thanks!
Keep in mind as well that the mortgage deferrals will cost you money in the long run. You’re still accruing interest on your mortgage, and that needs to be paid sooner or later.

C
Member
Feb 15, 2018
440 posts
527 upvotes
Edmonton
Mortgage companies deferral criteria is how you the borrower will have difficulties in paying the mortgage. They really do not care about what is going on between your two tenants. It's your financial situation they are interested in.
Edmonton area Realtor
Deal Fanatic
Apr 5, 2016
5777 posts
4190 upvotes
Calgary/Vancouver
None of the FIs are verifying anything you say. If you say your tenants are having issues, then you'll qualify. But question now is why would you want to defer, as it'll add the interest you owe to your balance and interest is further compounded on top. Not to mention, it'll also extend out your amortization and force a payment increase come time for renewal.

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