A few months ago, in the mortgage world, the big news was the Canadian Government allowing mortgage holders the ability to defer payments if required due to COVID-19.
Not much was known about it then, but mortgage agents were working diligently with their clients regardless. So, how did deferring payments affect the population? Not just mortgage payments, but any loan payments. We now know that anyone who took this route, whether they could, or they should, will have a new statement appearing on their Equifax credit report.
Affected by Natural or Declared Disaster
Right now, this statement does not negatively impact someone’s credit score, however, it is something every creditor or lender will take into consideration when considering someone for a loan.
One method I have been discussing is taking a snapshot of your financial situation, including past banking statements and loan repayments, in order to provide more information to potential creditors or lenders if necessary. Having a snapshot of your financial history will be a key for future creditors to be able to identify your past history of reliable borrowing.
Remember, lenders are still lending to people who defer but it’s important to have your information readily available.
Get Back on Track
If you deferred because you could or because you should, it’s time to get back on track.
Start making those loan repayments again and continue to build that picture for creditors to see that you are a reliable borrower. Ensure you are making, at the very least, your minimum payments on time (or early if possible) and employ budgeting tactics for yourself and/ or your family to continue down the right path to credit recovery.
If you have any questions or concerns about your mortgage or other payment deferrals, don’t hesitate to reach out to myself or your Windrose Group agent for guidance. We are here to help you through this time and keep your credit sparkly!