Rental unit and mortgage deferral

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May 9th, 2020 6:47 pm

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May 6th, 2020 7:51 pm

ChiGGz [OP]: Deal Addict; Apr 8, 2003; 1589 posts; 172 upvotes; Downtown Toronto

May 6th, 2020 7:51 pm

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

May 6th, 2020 10:12 pm

CNeufeld: Deal Guru; Mar 23, 2008; 13006 posts; 9992 upvotes; Edmonton

May 6th, 2020 10:12 pm

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

May 6th, 2020 11:55 pm

sidshock: Deal Addict; Mar 23, 2003; 4656 posts; 1266 upvotes; Hamilton

May 6th, 2020 11:55 pm

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.

May 6th, 2020 11:59 pm

CNeufeld: Deal Guru; Mar 23, 2008; 13006 posts; 9992 upvotes; Edmonton

May 6th, 2020 11:59 pm

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

May 9th, 2020 12:19 am

canuckstorm: Member; Feb 15, 2018; 448 posts; 558 upvotes; Edmonton

May 9th, 2020 12:19 am

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

May 9th, 2020 6:47 pm

bomber17: Deal Fanatic; Apr 5, 2016; 6099 posts; 4591 upvotes; Calgary/Vancouver

May 9th, 2020 6:47 pm

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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