I’ve written in the past about how Genworth, the leading private-sector mortgage insurer in Canada, will work with you if you are anticipating problems making your mortgage payments in the future, and now they have released an online tool to start the process in the privacy of your own home.

This simple, 4-screen questionnaire, that takes only a couple of minutes to complete, will give you a brief description of how they might be able to help you, based upon your answers. It ends with a contact form so that you can start the process in complete privacy. Or you can contact your lender, or contact me and I will help you through the application process if you can’t make your mortgage payments.

I think it is excellent that owners of real estate are able to have such great protection for their investment; it is such a complete opposite of how things are done in the USA. Banks here do not want to own real estate; they’d rather see people stay in their home.

As I’ve said in my previous post, your mortgage must be up to date to take advantage of this opportunity, so when you hear that you might be laid off, that is the time to take action.

What do you think of this proactive move to help keep families in their homes? I’d love your comments.

And to be fair, here is some information from CMHC . . . 

Dealing with Mortgage Payment Difficulties

When unforeseen financial circumstances impact your ability to make regular mortgage payments, it’s important for you to take quick action. With early intervention, cooperation, and a well executed plan, you can work together with your lender to find a solution to your financial difficulties.

What Can I Do to Help?

If you find yourself facing financial difficulties, as a result of job loss, family income reduction, or for other reasons, it can be an overwhelming experience leaving you feeling uncomfortable and unsure of what to do. By following these three simple steps, you can make a big difference in resolving

your financial difficulties.

1. Talk to your lender

To increase the chance of successfully managing your financial situation through early intervention, call your lender at the first sign of financial difficulty;

Ask the lender about information on the options available for managing your financial situation; and

Keep the lender informed as circumstances evolve.

2. Clarify the financial picture

In order to help your lender fully understand your financial situation, before meeting with your lender, prepare a detailed list of financial obligations including any credit cards, loans, household bills with the amounts owing and their due dates. Be sure to include information about your current income, savings accounts, investments, and any other assets.

3. Stay informed

The more information you have at your disposal on managing your finances, the easier it will be to make the right decisions.

Take Charge of Your Debts is an online tool from the Government of Canada that is designed to help borrowers like you understand debt problems, and includes information on making a budget, budget counselling, collection agencies, credit, and credit repair. To view this tool, log on to www.ic.gc.ca (Industry Canada) and search for “Take Charge of Your Debts”.

How Can Lenders and CMHC Help?

Your lender wants to establish and maintain a positive relationship with you over the long term. As mortgage professionals, they are fully trained and have the tools to help you deal with the temporary financial setbacks that you may be facing.

For mortgages insured by Canada Mortgage and Housing Corporation (CMHC), CMHC provides lenders with tools and the flexibility to make timely decisions when working with you to find a solution to your unique financial situation. These tools include:

Converting a variable interest rate mortgage to a fixed interest rate mortgage in order to protect you from a sudden interest rate increase, should one occur.

Offering a temporary short-term payment deferral. Your lender may be prepared to offer greater payment flexibilities, particularly if previous lump sum prepayments have been made, or if you have previously chosen an accelerated payment schedule.

Extending the original repayment period (amortization) in order to lower your monthly mortgage payments.

Adding any missed payments (arrears) to the mortgage balance and spreading them over the remaining mortgage repayment period.

Offering a special payment arrangement unique to your particular financial situation.

CMHC is also willing to consider other alternatives proposed by the lender to resolve or avoid mortgage payment default. In every case, the options available will depend upon your individual financial circumstances.

CMHC is Canada’s national housing agency. For over 60 years CMHC has shared a wealth of knowledge and housing expertise to help create an informed and reassured homeownership experience for Canadians.