With the rising interest rate environment, Sagen recognizes that certain homeowners may face financial hardship related to a material increase in mortgage payments. This guidance provides clarity on the use of extended amortization as a workout option for homeowners faced with this hardship due to mortgage payment shock resulting from rising interest rates either at term renewal or during the mortgage term. For homeowners in Variable Rate Mortgages (VRM), lenders are encouraged to proactively reach out to homeowners in advance of mortgage renewal. The extension of amortization provides immediate relief to homeowners by reducing the mortgage payments and improving overall affordability.
USE THIS LINK FOR THE FULL ARTICLE:
https://www.sagen.ca/wp-content/uploads/2022/11/BDL-EN_Sagen-Lender-Update-Supporting-Homeowners-Impacted-by-Rising-Interest-Rates.pdf?fbclid=IwAR3hwSWFlq-cqFG2Fra4CDolFHWoIUU6seI92OzG37ZOA-ummdG-3GfUyPU
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