Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

March 26, 2008 23:59 ET

CMHC Launches Campaign to Help Homeowners

OTTAWA, March 26 - Today, the Canada Mortgage and Housing
Corporation (CMHC) launched a consumer outreach campaign to help borrowers
understand the importance of working with lenders to find manageable solutions
if they are facing financial difficulties in repaying their mortgage loans.

"CMHC has a long tradition of offering mortgage default management tools
to lenders to help them assist homeowners whose financial circumstances have
changed. We want to remind people that the best course of action is to speak
to their lenders at the first sign of financial difficulty. With early
intervention, cooperation and a well executed plan, you can work together with
your lender to find a solution." stated Mark McInnis, CMHC Vice-President of
Insurance Underwriting, Servicing and Policy.

The campaign includes consumer information on the options available to
homeowners who may be having difficulty meeting their mortgage payments. This
information is also being provided to government partners and credit
counseling organizations.

CMHC advises homeowners to:



1) Talk to your lender at the first sign of financial difficulty
2) Clarify your financial picture, both for yourself and your lender
3) Stay informed about what options and resources might be available to
you


For Approved Lenders with CMHC-insured mortgages, we provide tools and the
flexibility to make timely decisions when working with homeowners to find a
solution to an individual's unique financial situation. These tools include:



- Offering a temporary short-term payment deferral. Lenders may be
prepared to offer greater payment flexibilities especially if previous
lump sum prepayments have been made, or if an accelerated payment
schedule has been previously chosen.
- Extending the original repayment period (amortization) in order to
lower the 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 an individual's
particular financial situation.


More information and resources are available at CMHC's website at
www.cmhc.ca search keywords "mortgage payment difficulties", or at
1-800-668-2642.

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

Contact Information

  • Kristen Scheel, CMHC Media Relations, (613) 748-2799