Our new channels have been flooded with information on COVID-19 financial relief information for GTA homeowners. But how are you supposed to sort this all out, and figure out what you and your family qualify for?
We put together a list, with the appropriate links to help you source information and determine what your next steps are. If you have further questions, don’t hesitate to contact the corresponding government authority or even your bank, as these two institutions will be able to provide more info.
Mortgage Deferrals
Canada’s big six banks are working with homeowners to defer mortgage payments for up to 6 months as part of their COVID-19 financial relief programs.
BUT, this is not a mortgage holiday and the interest on your mortgage will keep accruing during the deferral period. You will still have to pay your mortgage eventually and the terms vary among the different major banks. The big advantage to this, is it will help yo with your monthly cash flow as we ride this out together.
If you have lost your job or your income has come to a screeching halt due to being self-employed, this relief is particularly for you.
We’ve had some of our income property owners talk to their banks so even if you think you may need assistance, even down the road, start those conversations with your bank now. It’s a good time to reach out to your mortgage broker for more information as well – ours are more than willing to help so don’t hesitate.
Emergency Response Benefit
The federal government is providing a taxable benefit of $2,000 a month for up to 4 months if you’ve had to stop working due to COVID19, are sick, quarantined or taking care of someone who is sick, working parents who must stay home without pay to care for children and workers who still have employment but aren’t being paid.
The Canada Emergency Response Benefit will also be paid to self-employed and contract workers who don’t normally qualify for Employment Insurance benefits.
Canadians will be able to apply for the Emergency Response Benefit online or by phone in early April – more updates are coming daily so watch the appropriate government websites for the most up to date details and the launch of the registration website.
Ontario Electricity Relief
Ontario homeowners will benefit from the suspension of time-of-use electricity rates for 45 days, meaning that off-peak rates will be charged 24-hours/day as part of their COVID-19 financial relief program.
All electricity will now be charged at 10.1 cents/kWh vs the mid-peak rate of 14.4 cents/kWH or peak rates of 20.8 cents/kWh. You don’t need to apply for anything here as the discounts will be automatically applied to your hydro bills.
If you want to read more about this program, you’ll find further information here:
Ontario Providing Electricity Relief to Families, Small Businesses and Farms During COVID-19
Ontario Property Taxes & Utilities
As of March 16th, residents of the City of Toronto will have an extended grace period in which to pay property taxes and city utility bills.
Automated withdrawals have been suspended for the next 2 months. If you pay your property taxes through your bank, contact your bank to see how this affects you and what steps can be taken to take advantage of this relief benefit.
If you want to read more about this program, you’ll find further details here:
Economic Support & Recovery for Individuals & Families
Child Benefits, Income Tax & HST
The Canada Child Benefit will be providing an extra $300 per child (delivered in May).
Read more here: Canada Child Benefit Program
The GST Credit program for low-income families will automatically pay an extra one-time payment of $400-600 in May.
Read more here: GST Credit Program
Income tax deadlines have been extended for personal taxes. You must now file by June 1, 2020 and remit any taxes owing by August 31, 2020.
Read more here: Income Tax Extension Program
Wage Subsidies
Many small business owners affected by COVID19 will qualify for the $2,000 a month Canada Emergency Response Benefits for up to 4 months. You’ll need to apply online in early April when the government website launches.
There’s also a Wage Subsidy Program for qualifying small and medium-sized businesses impacted by COVID, who have experienced a reduction of at least a 30% in revenue. The federal government will subsidize 75% of the first $58,700, up to $847 per week. Benefits will be available for up to 3 months and are retroactive to March 15, 2020.
Small Business Loans
A number of loan programs have been announced to help small businesses, including:
The Business Credit Availability Program loan guarantee and co-lending programs have been announced and will be administered through financial institutions. You’ll need to talk to your bank to see if you qualify and obtain further details.
Read more about the program here: Business Credit Availability Program (BCAP)
The Canada Emergency Business Account program will provide interest-free loans of up to $40,000 to help cover operating costs while revenue is impacted. To qualify, organizations will need to demonstrate that they paid between $50,000-1 million in total payroll in 2019. Repaying the loan by December 31, 2022 will result in loan forgiveness of 25% (UP TO $10,000). More details about this program will be announced soon, but if you qualify, it’s something to put on your radar.
HST Remittance Extension
HST remittances can now be delayed until June 30, 2020. The deferral applies to GST/HST remittances for the February, March and April 2020 for those who file HST monthly; the January 1, 2020 through March 31, 2020 reporting period for quarterly filers; and for annual filers, the amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer’s current fiscal year.
Student Loan Moratorium
Effective March 30, 2020, there’s a 6-month interest-free moratorium on Canda Student Loans. Payments will automatically be suspended and interest will not continue to accrue during that time.
TRB Education Hub
Get the real estate resources you need to succeed. Visit our education hub for market insights, guides, podcasts and more.
