Loan and Mortgage Deferrals During COVID-19

Date: March 25, 2020

We’re here to help.

Our members and communities are feeling the impacts of COVID-19. If you are experiencing financial stresses to your immediate or future financial situations – Westoba is here to help. We recommend talking with someone from our Virtual Services Team at 1-877-WESTOBA for your options. 

 

Loan and Mortgage Deferral Options 

All members who have incurred financial hardship due to the current COVID-19 situation are eligible for loan and mortgage deferrals: 

Loan Type: Defer up to: Documents required:
Consumer LoansOne month Not required.
However we will record your verbal consent
Dealer Finance Loans One month Not required.
However we will record your verbal consent
Mortgage
Conventional or multi–purpose mortgage
CMHC-insured mortgage
Genworth-insured mortgage
One monthNot required.
However we will record your verbal consent
Mortgage
Conventional or multi–purpose mortgage
CMHC-insured mortgage
Genworth-insured mortgage
2 - 4 monthsEI Application or ROE or Employer letter
Mortgage
Conventional or multi–purpose mortgage
CMHC-insured mortgage
Genworth-insured mortgage
5 – 6 monthsEI Application or ROE or Employer letter

Some conditions may apply.
To support you during this time, we will be waiving the associated fees. Call 1-877-WESTOBA (937-8622), and together with our Virtual Services Team, we will assess your situation and develop a plan for deferral and repayment.

What does deferring a payment mean? 

It’s essential you know skipping a payment means you are deferring your payments until a future date. Interest continues to accrue. When you resume your regular principal plus interest payments, you will begin to repay this increased interest. Interest is NOT waived.  

Example: Current mortgage and what deferral would do.  

If you have a $300,000 mortgage balance with an approximate $1,400 monthly payment, at an interest rate of 2.85%, your monthly principal amount will be $675 and your interest portion is $725. Deferring your payment for 6 months will mean $4,350 in total interest payments ($725 x 6) will continue to accrue.  

Once you resume your payments your regular mortgage payments of $1,400 will all be applied to the owed monthly interest at that time, along with the owed interest from the deferred interest payments totalling $4,350.   

Once the owed interest is repaid in full your regular principal and interest payments will be applied to the mortgage. How long you defer your payments, will have an impact on how long this may take. 

**The above is for illustration purposes only, amounts are estimates. Call 1-877-WESTOBA (937-8622) to discuss what a deferral might look like for you.

Is this right for me? 

Our knowledgeable team is here to walk you through all scenarios and work with you to find the best option. Deferring payments can be a benefit for your immediate situation, but we want you to know how it affects your financial fitness in the big picture.  

We encourage any members who have questions or concerns about your financial situation to reach out to our Virtual Services Team at 1-877-WESTOBA (937-8622) for guidance and support. We will work with you and do everything we can to get you through this. We’re here to help. 

For our Business Members looking for financial relief, please reach out to your Business Banking Team and they will work with you to offer support.