Page 18 - GTA Real Estate & Renovations Summer 2022

Financing Your Way
Through Troubled Times
Michael James Georgopoulos
Capital Home Lending
michael@capitalhomelending.ca mikegmortgages.ca Tel: 416-899-1349
ITis not business as usual. Many of the things we as A Canadians have taken for granted have now changed, and
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we look for answers on how we can perceiver, both individually, and as a society. We look to our governments and leaders, industry professionals, and institutions for the answers in these unprecedented times in hope that a path of least resistance unfolds to allow us to carry on without struggle or hardship. e questions we all have on our minds is where do we go from here?, how do we get back to normalcy when time allows?, and what can I be doing to protect myself from this happening again.
In times of drastic change the best advice would have been to be prepared for this, but hindsight is always 20/20. Now that the COVID-19 virus has effected the way we do business, we address the current financial steps we can take to ride out the storm, and if opportunity allows, to reinforce our financial security. Almost 100% of Canadian Banks and lenders have developed a mortgage payment deferral program which will allow you temporarily postpone the regularly scheduled payment on your home. By contacting your mortgage providers servicing department you will have your request reviewed, and upto a 6 month deferral granted on a case by case basis. Over and above this, the Canada Emergency Response Benefit government EI grant of $2000/month is offered to those who have either lost their job, or ability to earn income so access it accordingly.
When we speak of opportunity we must be sensitive to what is happening in the world. Many are sick, have lost a substantial amounts of their savings, and as time goes by without resolve a good portion of their homes value. Some find themselves caught up in a transaction which was put in place many months ago and could not be stopped. With people taking the risk of purchasing a home before selling their current property, it has created a situation whereby they may not be able to sell for what they wanted to based on relative sales before this crisis. Yes, it is a buyers market. Rents are also dropping rapidly which will allow some who are lucky enough to be working to get into a property of their own at a reduced price. Although someone is not getting what they originally wanted on the selling side, it is the hope that you are doing them the favour by offering what you can for the home when there is a limited number of active buyers on the market.
be sure people will be extra cautious moving forward, and recognize that they may have been unprepared for an event such as this. As I commonly write about, having access to your homes equity (whether you need it or not) is of great resource and benefit as life can change in an instant. Secured lines of credit are avaialble upto 80% of the homes value, but no more then 65% of the homes equity. ey cost only a few hundred to set up, and remain readily avaialble to borrow from if ever the need arises so if you can qualify, get one. For the elderly who have amassed equity in their home over the years, the cash payout option in the form of a mortgage requires hardly any income to qualify for, has no monthly repayment, and is an option to rely on without having to sell your property. Last resort is private financing. Many lenders out there are still operating and offering mortgages at slightly higher rates with fees for their service and no income qualification necessary.
Advice, even when coming from a professional should always be taken with a grain of salt. To know your options and the resources avaialble to you can save a lot of financial heartache, so I encourage you to reach out if there are ever questions that need to be answered, and situations that need to be addressed.
Humbly yours, and always willing to lend an ear,
Michael James Georgopoulos
Page 18 GTA REAL ESTATE & RENOVATIONS SUMMER 2022