Option 1 : Conversion from Variable/Adjustable Rate to Fixed Rate
For borrowers concerned with the impact of increases in mortgage interest rates on their payments. CMHC-insured variable or adjustable rate mortgages can be converted to a fixed-rate equal payment mortgage to re-establish the amortization schedule of the original mortgage.
The Approved Lender can approve and implement this option.
Option 2: Prepay and Re-borrow
For borrowers with prepaid equity in their property who are experiencing temporary cash flow problems. The borrower can re-borrow prepaid funds over and above the normal principal reduction. Prepayments may be lump-sum or as a result of an accelerated payment schedule.
The Approved Lender can approve and implement this option subject to a documented borrower interview.
Option 3: Mortgage Payment Deferral
The Approved Lender can approve a borrower to defer up to 4 months mortgage payments without having to make any offsetting pre-payments. The balance owing plus the requested deferral amount must not exceed the original insured loan amount. The Approved Lender must assess and be satisfied with the borrower’s capacity to make increased payments if the deferred payments are capitalized at term renewal to ensure the original maximum amortization period is respected.
The Approved Lender can approve and implement this option subject to a documented borrower interview.