How financial relief for residential mortgages works
Making decisions easier and lives better is at the heart of everything we do. If you’re at risk of defaulting on your residential mortgage due to missed payments and are considering applying for payment deferral, we want to make sure you understand how it works.
Financial relief for Manulife Bank Select customers
If you’re directly impacted by COVID-19 and facing financial challenges, we can help with options including deferred residential mortgage payments for up to 6 months.
The key thing to know is that deferring your payments doesn’t mean the payments are waived. The interest which would have been part of your regular payments is accrued and added to the outstanding balance of your mortgage. The deferred principal payments and additional interest will be added to your mortgage balance. At the end of your mortgage term, your increased mortgage balance will be used to determine your new payment amount.
It's important to know that your credit score will not be impacted by deferring your mortgage payments under our financial support program.
However, you may have better options than deferring your payment. For example, if you have made prepayments to your Select mortgage, you may be able to reduce your payment amount to something more manageable.
Financial relief for Manulife One customers
If you have borrowing room, you don’t need to apply for financial relief. Our payment deferral program is designed for homeowners at risk of defaulting on their mortgages due to missed payments. With Manulife One, you aren’t required to make a fixed payment each month. You have the flexibility of deciding how much you want to repay, and if you choose to repay nothing you can allow the interest to accrue up to your borrowing limit. In many ways this is like giving yourself a payment deferral.
If you have borrowing room, you have flexibility
If you have borrowing room in your Manulife One account, you have the flexibility to temporarily stop making deposits into your account without applying for additional financial relief. You can also use the borrowing room in your Manulife One Main Account to help cover expenses until things return to normal. And, because the Manulife One base rate has gone down, you’ll be paying less interest than you have in the recent past.
If you have a fixed-rate sub-account
Fixed-rate sub-accounts have required payments, just like a traditional mortgage. Here again, the borrowing room in your Manulife One Main Account can help. Since your sub-account payment is coming from your Main Account, you can continue to let it do so as long as you have borrowing room available.
If you’re near your borrowing limit
While your Manulife One account provides you with significant flexibility to adapt to the current situation, you may find yourself at or near your borrowing limit. If you find yourself in this situation, we’re here to help. Simply complete the COVID-19 financial relief form and we’ll help you find a solution that meets your needs.
Ready to apply?
It’s a good idea to talk to your financial advisor about which option works best for your unique situation. If you don’t have an advisor, you can find one here.