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47% of people living in Toronto rent. There is a petition with 578,000 signatures already calling for the government to cancel all mortgage and rent payments for 6 months.

Landlords may be wise to offer to apply last month deposit cheques to rent now. That will buy some time for money from the government to start flowing.

If landlords steadfastly refuse, they may regret what happens instead. Tenants won't pay the rent and can't get evicted.

https://www.change.org/p/federal-government-of-canada-cancel-rent-and-mortgage-payments-during-covid-19?recruiter=671731844&utm_source=share_petition&utm_medium=twitter&utm_campaign=psf_combo_share_initial&recruited_by_id=e2f1c7c0-e5bb-11e6-81db-9b5ac24b33dd
Only problem with skipping mortgages for 6 months is the accumulation of interest ,on a $300000 mortgage in 6 months you would be around $5000 interest Mortgage u/w may be able to share some realistic numbers on that for us.If the banks give 6 month interest free I can see that argument.
 

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Only problem with skipping mortgages for 6 months is the accumulation of interest ,on a $300000 mortgage in 6 months you would be around $5000 interest Mortgage u/w may be able to share some realistic numbers on that for us.If the banks give 6 month interest free I can see that argument.
I don't think any special expertise is required to calculate interest for 6 months. If the note bears interest at, say, 3% per annum, interest for one year is $9,000 and half of that is $4,500. That is, of course, a bit of a ballpark figure, without reading the language of the particular mortgage "repayment clause", which will usually stipulate for interest to be calculated yearly or half yearly, not in advance. Sometimes the calculation is monthly (which produces a slightly higher yield). Then there will be the factor of interest upon interest if no payments are made for 6 months.

Of course, sags suggested that government override the contracts and "cancel" all payments, which to me denotes something other than merely suspending or deferring payment. Perhaps sags is suggesting that the payments simply be written off, forgiven.
 

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I don't know if that is necessary. I still have my job and am getting paid. I think we need to be responsible with drastic actions like cancelling mortgage payments. I can continue to pay my bills.

Given the huge hole this is going to blow a hole in the economy and that rates are already going to be at zero, it could take the form of 'helicopter money', or Bank of Canada buying government of Canada bonds to fund payments to households.
 

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My contract based income is at serious risk. My business partners (we all work online) are in UK, Asia, Italy and what seemed like guaranteed pay just a couple weeks ago might now be gone. Hard to tell at the moment.

I know other small business owners too and whether they are domestic or international, we're all seeing income reduction.

That part reminds me of 2008. All kinds of incomes sharply, and very suddenly, fell off a cliff. Similar thing happening now.
 

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Of course, sags suggested that government override the contracts and "cancel" all payments, which to me denotes something other than merely suspending or deferring payment. Perhaps sags is suggesting that the payments simply be written off, forgiven.
Of course no debt can really be forgiven...the taxpayer will pay for it in the end. Too bad I paid off my mortgage...maybe I could have qualified to have some of my debt written off.
 

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Discussion Starter #26 (Edited)
No, no.......I don't support the concept of renters not paying for 6 months.

They are completely different circumstances than a mortgage lender getting paid the interest and adding payments at the end of the amortization.

What I was suggesting is that in order to avoid such a scenario, landlords could step forward and advocate to apply the tenants last month deposit to April 1st rent payment.

It would cost the landlord nothing unless the tenant skipped the last month of rent, and that may be the least of the landlord's worries.

I am offering that idea as an alternative to what the petitioners want. All the tenants need is a month to buy some time.

Time until the government benefits kick in and then tenants should be able to pay their rent.

Trudeau says the government is prepared to have a second, third, fourth round of payments if that is what it takes. They are all in at this point.

The money will flow. It will just take until the middle of April to get into people's bank accounts.
 

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Discussion Starter #27 (Edited)
The US is setting up to have a total stimulus packages of $4 Trillion dollars, and Canada is talking about $25 Billion, not counting deferred tax payments that will eventually be paid.

We need to get serious. They made it way, way too complicated. They had too many accountants in the room.

Give every Canadian over the age of 18 $15,000 cash ($450 billion) and let them pay their own rent and bills. Make it last 3 months and then see where we are.

Per capita that is about what the US is spending, and our debt load is a lot better shape than theirs.

Forget about how to administer a bunch of new programs when the government agencies may themselves end up shutting down due to coronvirus infections

I can see this stimulus plan could end up as the mother of all clusterf**ks, just when people need it the most.

Dear Justin, you are playing political roulette here. If everything doesn't go smoothly it is all on you. Why take the chance........send the cheques.
 
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