Canada’s housing future need not be so bleak as heading to a cliff. Already, federal institutions are taking steps to allow deferrals to last until December. The Office of the Superintendent of Financial Institutions , a federal government agency that regulates the banking sector, advised the financial institutions that unlike the six-month deferrals granted until the end of August, those given in September will be entitled to special treatment for up to three months.
A fast economic recovery, therefore, can prevent mortgage markets from approaching the deferral cliff. Also, continued support from the government and lenders can help expedite the economic recovery. For instance, anticipating a slower recovery, Australian authorities announced in July that mortgage deferrals could last for up to 10 months. In the U.S., the Federal Housing Finance Agency announced an extension of the moratorium on some foreclosures and evictions till December of this year.
Sadly house sales where higher due to people downsizing, doesn’t make sense that deferral ends the same time CERB. People need it now more than they did in April