Canadians Abusing Covid-19 Mortgage Relief Program

[Economy 52,844]

https://www.bnnbloomberg.ca/cmhc-warns-on-jamming-up-phone-lines-for-needless-mortgage-relief-1.1411120

 

The Government, State Owned CHMC (Canada Housing Mortgage Corporation) and the 6 largest banks worked together to come up with a program that will allow Canadians to defer mortgage payments by up to 6 months as an influx of workers have been placed with layoffs all at once

 

However how many of the 6 months you qualify for (if you qualify at all) are decided on a case by case basis

 

Banks are now complaining about a large influx of Canadians jamming phone lines that have not yet lost their jobs or had hour cuts that want their mortgages deffered too and warn it's not possible to defer the mortgages of every single Canadian with one and they have to prioritize people who actually cannot make payments under this program

 

They are asking that if you have not lost your job or faced significant hour cuts, or if you have but can still make your payments with your EI benefits or savinfs for now, to stop jamming phone lines for those that actually need it now because you will not qualify for the defferal

[Economy 52,844]

I had a feeling this was gonna happen

 

The same ppl hoarding food and toilet paper with no concern for others are probably the same type of ppl that don't actually need this defferal (at least yet) and decided to ask for one anyway

[Economy 52,844]

I just hope if my parents need it they don't get denied

 

@OBEY @JustinTrudeau @Teal Ambition any of u guys or close relatives planning on trying to apply?

 

@AlexanderMagno any simmilar stuff in Portugal or Europe?

[StarstruckIllusion 53,564]

How is it abuse to make a phone call 💀 Sounds like the result of poor media messaging.

[Economy 52,844]

8 minutes ago, StarstruckIllusion said:

How is it abuse to make a phone call 💀 Sounds like the result of poor media messaging.

I guess if u don't really need it ur:

 

#1 jamming up lines that are already busy to begin with and making it even harder for those that need it to get thru

 

#2 if u manage to convince them u need it when u don't, ur gonna make it harder for those that actually need it most to get approved cuz they can't approve it for every single person that asks

 

It makes sense to me. The point of this program is not to give everyone a vacation from bills, it's an emergency measure the Government convinced banks to offer for the people that are most desperate that are gonna go into payment defaults if they can't get their mortgages deffered

 

The Canadian mortgage market goes into the Trillions of Dollars and is a very huge chunk of the financial system (not surprising given for how many years the market has been super hot)...

 

U can't just suddenly suspend payments for every single person that asks for one so yes I do think it's a bit abusive to try to get a defferal in a critical time like this is ur not one of the individuals that really needs it

[AlexanderMagno 10,746]

15 minutes ago, Economy said:

 

@AlexanderMagno any simmilar stuff in Portugal or Europe?

I don't think the media outlets have not said anything about this situation. It is predictable for something like this to happen, but so far I have not heard anything about it. But I'm not sure how the economic measures are working here, I know the government is implementing a few things and negotiating with the banks, but not sure how advanced that is... I feel like they are trying to avoid going into too much bureaucracy, at least right now (I'm sure later when the virus is no longer a big issue it will be a nightmare) but I really don't know...

Canadians, you are disappointing me   

[Economy 52,844]

4 minutes ago, AlexanderMagno said:

I don't think the media outlets have not said anything about this situation. It is predictable for something like this to happen, but so far I have not heard anything about it. But I'm not sure how the economic measures are working here, I know the government is implementing a few things and negotiating with the banks, but not sure how advanced that is... I feel like they are trying to avoid going into too much bureaucracy, at least right now (I'm sure later when the virus is no longer a big issue it will be a nightmare) but I really don't know...

Canadians, you are disappointing me   

Hopefully u guys come up with something

 

I know Canadian banks are among the most Capitalized in the world because of regulations, the fact that we had the developed worlds highest interest rates till last month (1.75%) and the housing market just being so hot. Maybe in Europe 6 months is not somethings ur banks can handle but if Government helps who knows

 

But I gotta say im not surprised by this. The Government and banks announced these measures last week and didn't give many details on it, they almost made it sound like a free for all

 

I had a feeling a lot of people that weren't in immediate need of defferal would try to get one and make it harder for those that need it most to get thru

 

But this is also the government and banks fault too not just the people. They should have clarifiednin more detail that not everyone that asked for a defferal would automatically get one and that it would be decided on a case by case basis depending on your circumstances

 

The way people are panicking now with money and work, and the way they didn't outline the conditions and restrictions in almost any detail, it was to be expected that banks would get a big wave rush of people trying to take advantage of this both from the people who actually need it and the ones that don't

 

My parents have decided not to ask for one yet because they do have savings for a couple months worth of bills and my dad being the most important supervisor in the company makes his layoff only last as long as the total lockdown. But they are worried they may not get the referral if and when they need it if it gets to that

 

 

[Teal Ambition 47,805]

Luckily I am financially stable and I can pay off all my mortgage payments on time but its a shame so many people are abusing the system where there's people out there that really need it. 

[Floppy 7,951]

1 hour ago, Economy said:

I had a feeling this was gonna happen

 

The same ppl hoarding food and toilet paper with no concern for others are probably the same type of ppl that don't actually need this defferal (at least yet) and decided to ask for one anyway

This is not a surprise AT ALL. Store near me ARE still out of toilet paper.

[Economy 52,844]

2 minutes ago, Teal Ambition said:

Luckily I am financially stable and I can pay off all my mortgage payments on time but its a shame so many people are abusing the system where there's people out there that really need it. 

Ppl are worried and stressing about what the economy is gonna look like even if they are not in a terrible situation themselves right now. It is understandable they wanna try to take advantage

 

But it's a problem. They clearly can't just defer payment of every single person that asks for it so ppl should be mindful of whether or not they actually need it

[Teal Ambition 47,805]

5 minutes ago, Economy said:

Ppl are worried and stressing about what the economy is gonna look like even if they are not in a terrible situation themselves right now. It is understandable they wanna try to take advantage

Yeah, ngl I'm kind of worried how the economy is going to be down the road, it's not looking good. I recently invested in another property and I hope this doesn't backfire on me. The sellers market has been so good lately and I don't think it will last much longer  

[Economy 52,844]

10 minutes ago, Teal Ambition said:

Yeah, ngl I'm kind of worried how the economy is going to be down the road, it's not looking good. I recently invested in another property and I hope this doesn't backfire on me. The sellers market has been so good lately and I don't think it will last much longer  

Property market can definitely loose steam for a while. Higher unemployment or lower wages (or likely both) will inevitably cause a dent in demand. Won't be surprised if there's some degree of price depreciation over the next year or two

 

However since Canada has a shortage of housing, as soon as the economy is back on its feet housing should snap back with it

 

Canada would not face the kind of collapse US housing did unless we went thru an extremely bad economic downturn because our fundamentals are different

 

The US had an overbuilding of supply during their housing boom which caused the crash to be more severe when correction time came as supply outstripped demand

 

In Canada because of slow construction approval laws (which I highly criticize as do many experts) and fast population growth, we remain in housing shortage despite high prices that should have increased construction more than it has

 

Given tight supply, long term bidding wars will remain the norm for the foreable future so a prolonged decline like the US had from 2007-2012 is very unlikely

 

But in the short term while economy is weak tho yeah, don't be shocked if home values drop and ur new investment takes a hit in value

[Diamonster 1,786]

Thank God my gf’s mom got to defer her payments 

[Economy 52,844]

8 minutes ago, Diamonster said:

Thank God my gf’s mom got to defer her payments 

How many months?

[JustinTrudeau 2,419]

On 3/23/2020 at 5:52 PM, Economy said:

I just hope if my parents need it they don't get denied

 

@OBEY @JustinTrudeau @Teal Ambition any of u guys or close relatives planning on trying to apply?

 

@AlexanderMagno any simmilar stuff in Portugal or Europe?

My parents will be done with their payments in 2 months so I doubt they will defer it.

As for me, I'm renting for the foreseeable future since I'm a student now and I don't know where I will work after I graduate