Getting Mortgage Help from the Canadian Government
After World War II, the Canadian government established and operated the CMHC, or the Canadian Mortgage and Housing Corporation, in order to improve the strength of the housing market. The CMHC website offers programs and services for homeowners who need help with different facets of their mortgages.
Low-Income Homeowners
For low-income homeowners who need repairs to keep up the quality of their housing, the Homeowner Residential Rehabilitation Assistance Program serves this need. This program is available to Canadians who own a low-value home at least 5 years old, in substandard shape and needing repairs. These repairs cover heating, electrical, plumbing and structural problems, as well as fire safety issues.
Mortgage Assistance
Financial assistance for mortgages in the southern areas of Canada is a maximum of $16,000, while northern areas are eligible for $19,000. Those in far northern areas are eligible for up to $24,000, and all must apply through the toll-free phone number or through the website.
For Canadians looking to buy a home, getting CMHC mortgage loan insurance through your lender can help minimize the down payment to as little as 5 percent. This insurance is backed by the government and available everywhere in Canada.
Payment Help
If you are having trouble paying your mortgage, CMHC and your mortgage provider may be able to help. For those with mortgages insured by CMHC, there are specific tools to help them make payments. This includes help with converting variable interest rate mortgages to fixed rates, offering temporary payment deferrals and extending the repayment period or amortization to help lower the monthly payments.
All missed payments are added to the balance of the mortgage so that the balance is spread over the remainder of the mortgage’s repayment period. CMHC also offers special arrangements for payment that are unique to your situation.
Bill Payment and other Tools
A program called Take Charge of Your Debt is available through the CMHC website, and helps you figure out how to pay bills as well as your mortgage.
Although these tools are only available on the website, they can put you in touch with professionals who can expedite the process of getting the help described above. If you are not able to make payments, CMHC suggests that you talk to their mortgage professionals. These professionals are able to help you go through your financial situation and put you in touch with those who offer the best options.
Keeping in Contact
At the first sign of financial trouble, it is best to contact your local housing authority as well as your mortgage professional. Keeping the mortgage company informed of the situation not only allows them to find help for you before it becomes a dire situation, but also can give them a chance to find ways of working with your financial situation as it changes. For more information on the programs available to you, contact your mortgage professional.
