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Have you purchased a home, have a home to sell, have a mortgage to renew/refinance or are you looking to get into the market?
Welcome to the Ultimate Home Buyers Guide to Navigating a COVID-19 environment. It’s our goal to help answer any questions you may have and ensure you are given some clarity to help navigate these stressful and uncharted times.
This is the on-line companion to our PDF guidebook. Please bookmark this page [www.outline.ca/COVID-19] and continue to check back regularly as additional information is added or updated as/when it becomes available. Should you have any questions that are not included in the below, but you would like addressed, please email us at hello@outline.ca and we will try to post the answers as quickly as possible. Thank you and please stay safe – The Outline Financial Team
A list of some our most frequently asked questions. Please click on the “+” for more details:
What if I've purchased a home, but can't sell my existing home?
Toronto has been one of the most resilient real estate markets over the past 15+ years. It is rare we are faced with this type of situation (i.e., think 2007/2008 credit crisis or April 2017 market slow down), however, the impact of COVID-19 has pushed us into unprecedented times.
In general, it is important to remember that a purchase agreement is a legally binding contract. Unless you have a condition that makes the purchase contingent on the sale of your existing home (which is not typical in Toronto/GTA) you will likely be on the hook for closing your new purchase, regardless of your situation. Backing out of a firm purchase agreement could potentially result in a lost deposit, or worse, being sued by the seller for any damages in excess of the deposit.
POSSIBLE SOLUTIONS:
- Extend the Closing Date: The first (and best) option would be to try and extend your closing date. This may require you to increase your deposit to send a message to the seller that you are still committed to closing the transaction.
- Refinance Your Existing Home to Cover the Down Payment of Your New Home: Another option could be to refinance your existing home to pull out sufficient funds to cover the down payment of your new purchase. While this sounds straightforward, it can come with three main challenges: (1) Do you have enough borrowing capacity to qualify for both homes simultaneously? (2) Are you willing to take your current home off the market (which will be required for a refinance)? (3) Is there enough equity available in your existing home to cover the down payment plus closing costs of your new home?
- Family Help for a Gift/Loan: A major challenge of closing on a purchase in the absence of sale proceeds, is coming up with the down payment. In some cases, we have prompted clients to speak with family members which has resulted in a gift of funds and/or arrangements where the family member will lend funds at much better terms than an independent private/3rd party lender. Family funds will often come from existing cash or investments or can also come from accessing equity in owned property(s).
- 3rd Party / Private Lending: The most expensive (last resort) option would involve looking at alternative or private lenders who put more emphasis on the equity available in your properties versus the stringent income qualification rules used by traditional lenders. This solution can be very costly but is often still less expensive than the alternative of backing out of the purchase and potentially losing the deposit and/or being sued. As with any alternative solution, the goal would be to have this solution in place for as short a time as possible.
As one of the top mortgage brokerages in Canada, we have direct access to over 30 lenders including banks, credit unions, mono-line lenders as well as a host of private lender solutions. The goal with any proposed solution is to ensure that we complete a thorough analysis of your circumstances (often in collaboration with your realtor, accountant, and/or wealth manager, etc.) to determine the best course of action now, and in the future, to try and minimize any negative impact.
What if I've lost my job, but have yet to close on my purchase. Do I still qualify for a mortgage?
This is a big “it depends”.
While it will depend on the specific circumstances and lender, generally, if a client has a firm purchase prior to March 25th and they lost their job after the deal went firm, many lenders may still proceed with the mortgage on a case by case basis.
As there may be exceptions to this rule, please reach out to discuss your specific circumstances.
Are mortgage qualifying guidelines becoming more restrictive in the COVID-19 environment?
Over the course of late March and into April 2020, we have noticed a shift to more conservative mortgage qualification guidelines for the banks/lenders.
One such area is how lenders are approaching loan-to-value for higher priced properties (the loan-to-value is size of the mortgage vs purchase price). In the $1,500,000+ purchase price segment, borrowers are often required to provide a down payment in excess of 20%. Historically, this would be a condition that lenders may waive on an exception basis and allow the qualified buyer to move forward with the minimum 20% down. Currently, these types of exceptions are becoming very rare as lenders re-evaluate their appetite for risk.
In general, any underwriting exceptions involving income and qualifying ratios are becoming much more difficult to approve through traditional banks/lenders as they are worried about the negative effects that the pandemic will have on the economy. We expect the banks to remain cautious (rightfully so) until this pandemic shows signs of easing or when a treatment/vaccine is found. The possibility of mass defaults and deep economic recession are influencing the bank and lenders’ decision to become more conservative in their lending approach.
Why were mortgage rates going up when the Prime Rate was going down? Is this changing?
We wrote about this in our previous blog here. Please feel free to read through.
In summary, the uncertainty of COVID-19 initially resulted in an increased cost of funds to the banks/lenders which were passed along to consumers. While Prime Rate decreased from 3.95% on March 4th to 2.45% on March 27th, 5-year fixed mortgage rates actually increased over the same period, and the variable rate mortgage discounts offered diminished greatly given the “risk premium” in the market.
We are slowly starting to see an unwinding of this “risk premium” as the Canadian government has taken significant steps to ensure the credit/lending market remains liquid. This includes several initiatives:
- Government of Canada Bond Purchase Program
- Canada Mortgage Bond Purchase Program (supporting liquidity in the mortgage market)
- Bankers’ Acceptant Purchase Facility (supporting the market for bankers’ acceptances, which is a key source of financing for small and medium-sized corporate borrowers, as well as a benchmark for a banks cost of variable rate mortgages)
- Balance Sheet Expansion (providing flexibility for banks to increase their lending capacity and provide more liquidity to the market)
- For more information about these initiatives and more, please click [Here]
At the same time, we are also starting to see bond yields subside as a recession is becoming very likely, which would mean future Bank of Canada Rate increases are becoming less likely. In fact, at the time of writing this article, the 5-year Bank of Canada bond yields have dropped from 0.93% on March 18th down to 0.45% and we are starting to see some lenders reduce their 5-year fixed mortgage rates accordingly. That said, it will be a slow and steady process given the amount of uncertainty/risk that remains in the market given the pandemic.
From an interest rate outlook perspective, we have included a quote from the April 2020 BMO Capital Markets “Weekly Financial Digest” written by Chief Economist Douglas Porter below (someone we follow closely).
“The outlook for interest rates is straightforward, with rates now essentially at the lower boundary for both the Fed and the Bank of Canada. We expect no further rate moves right out to the end of 2021, and also no move to negative rates by either bank. But while it will now be quiet on the rate front, central banks remain extremely active on the liquidity and QE fronts—as seen by the Fed’s sweeping $2.3 trillion program.”
Overall, this should mean we will not see any major changes to interest rates over the course of the next year. We could see a return to more attractive discounts on variable rates towards the later part of this year and hopefully a continued decrease in fixed rates as banks reduce their spreads if/when volatility subsides.
What is happening to the appraisal process and property values?
The appraisal process is significantly different from what we are used to in a pre COVID-19 environment, and if fact, it continues to change.
As most appraisers will no longer go into properties to conduct interior inspections because of social-distancing practice, the industry has been very innovative by coming up with Modified Full-Inspection (ModFI) reports in order to provide timely appraisals.
While most lenders are fine with the new method, it is important that clients and realtors understand that appraisers are now often relying on pictures, videos and conversations with them to help determine the property’s value. In some cases, the appraiser may also ask for additional information such as room dimensions.
To best prepare for this scenario (especially when concerned with the valuation), it would be best to pull together relevant documentation in advance, and allot about 30 to 60 minutes of talking time with the appraiser after sending the documentation.
Some of the most common questions/answer regarding this topic are as follows:
Question: Can I still get a full appraisal report where the appraiser goes into the house?
Answer: Potentially, but it is a rare occurrence. If there is a special circumstance that warrants someone going into the property, a request can be made to the appraisal firm(s) to see if it can be accommodated, although there are very few appraisers going into properties these days.
Question: What is the typical turnaround time for a ModFi (Modified Full-Inspection) Report?
Answer: Typically, 3-5 days, depending on the region and how quickly appraisers receive information from borrowers / listing agents.
Question: What’s happening with home values?
Answer: Supply has shrunk at relatively the same pace as demand leaving prices slightly depressed, but still in the same ranges as several weeks ago. It is too early to tell what the full impact of COVID-19 will be on the real estate market, and appraiser are making a note of this in their appraisal reports.
Question: I’ve purchases a new property or I am looking to refinance my existing property, should I wait to do the appraisal or try to do it sooner than later.
Answer: In-line with the above answer, it is too early to tell the full impact of COVID-19 on the real estate market. As supply and demand have both decreased, prices have thus far remained relatively resilient, although it is anyone’s guess whether this will continue. Our suggestion would be to work with your realtor to look for comparable properties that have sold over the past 30 to 60 days, and if there is are relevant comps, then you should move forward with the appraisal as soon as possible to avoid potential future risk.
COVID-19: Mortgage Payment Options Tool-Kit
In this unprecedented period of uncertainty, we have received numerous requests regarding lenders’ “existing” and “emergency relief” policies with respect to flexible payment options. While we have included some general comments on possible ideas to lower your payments, as well as specific details for each lenders’ COVID-19 response page including links.
Important! Communication is key if you think you may miss a payment (or more). Lenders’ have all stepped up to help during this period of uncertainty. If you think you may miss a payment, make sure to let your bank/lender know in advance. There may be instructions on how to do this electronically on the lenders’ website, or if you tried calling and can’t get through, be sure to send an email and document everything.
Standard Skip-a-payment / Miss-a-payment Options
Many banks/lenders include a one month “skip-a-payment” or “miss-a-payment” option as a standard feature of their mortgage. This feature allows you to skip one month of mortgage payment(s). The interest that you should have paid, will get added to your outstanding balance, which you will pay down over time. As this is a standard feature for many mortgages, you may be able to initiate/activate this option directly from your online banking/mortgage portal.
Extend your Amortization to Lower Your Monthly Payments
If you are currently paying your mortgage based upon an accelerated bi-weekly payment structure, or if you have made any lump sum payments or increased payments, you may have the option to increase your amortization. By increasing your amortization (extending your mortgage duration), you will effectively decrease your monthly payments. When things turn positive, you could then focus on making lump sum payments to shorten your amortization.
Do you have a Line of Credit? You may be able to utilize the available balance as a buffer.
If you have an existing line of credit, you may be in a position to borrow from yourself to help get through this difficult time. For example, if you take a lump sum out of your line of credit, you could use that to temporarily make your mortgage payments, or make the minimum line of credit payment. As this will create additional debt/cost in the long term, it is important to make sure you analyze all your options both from a short and long-term perspective.
New! Emergency Payment Relief Solutions
In an effort to help people in need, banks and lenders have rolled out various mortgage payment deferral programs. A link the various programs are included at the end of this article, but key considerations are as follows:
- Discretionary: these emergency programs are offered at the discretion of the lender and you will need to contact them to see if you qualify. They are intended for people that are genuinely struggling to make their next mortgage payment – for example, if you have lost your job, don’t have any other reserves to draw from, etc.
- Deferred Mortgage Payment (vs. payment forgiveness): These emergency programs may allow you to defer up to 6 months of mortgage payments (both principal & interest). While each program may differ, in general, any interest payment(s) that you defer will get added to your total principal outstanding. Once your payments start up again, there may be an increase to your monthly mortgage payment as you will now have a higher amount owing. For a detailed analysis of what this could look like in your situation, please contact us at any time.
- Other Financial Product Payment Obligations: Banks and lenders may also offer deferred payment solutions for credit cards, vehicle loans, personal secured or unsecured loans, etc. Please review the specific COVID-19 announcement for your particular lender.
- Other Non-Financial Payment Obligations: while the above programs only address financial products, it will be your responsibility to continue to make any property tax, insurance, utility, condo fee payments, etc. As municipalities and companies across Canada are working hard to create creative solutions to help people, be sure to check relevant websites regularly for any updates.
For more information, or to discussion options, the Outline Financial Team is on standby to help:
Kind regards,
Your Outline Financial Team
T: (416) 536-9559
E: hello@outline.ca
W: www.outline.ca
Important Contact Information - Banks and other lenders COVID-19 details, options, and contact links.
While we have included the relevant contact details below, please don't hesitate to call or email any of the Outline team members for questions or to discuss options.
Banks
- Scotiabank – Click Here
- TD: Click Here
- RBC: Click Here
- BMO: Click Here
- CIBC: Click Here
- NBC: Click Here
- HSBC: Click Here
Other Banks, Credit Unions, Mono-line Lenders
- Alterna Savings: Click Here
- B2B Bank: Click Here
- CMLS: Click Here
- Desjardins: Click Here
- Equitable Bank: Click Here
- First National: Click Here
- Haventree Bank: Click Here
- Home Trust: Click Here
- HomeEquity: Click Here
- Manulife Bank: Click Here
- MCAP: Click Here
- Meridian Credit Union: Click Here
Mortgage Insurers
- CMHC: Click Here
- Genworth: Click Here
- Canada Guaranty: Click Here
Key initiaves by the federal government to support employees, businesses and self-employed professionals:
Employment Insurance (EI)
For employees with insurable employment, EI is available for job loss, lay off, or reduced hours.
FOR WHOM?
- Those who were employed in insurable employment
- Have lost their job through no fault of their own
- Have been without work and without pay for at least seven consecutive days in the last 52 weeks
- Have worked for the required number of insurable employment hours in the last 52 weeks
- Are ready, willing and capable of working each day
- Are actively looking for work (must keep a written record of employers contacted, including when they were contacted).
BENEFITS
The basic rate for calculating EI benefits is 55% of your average insurable weekly earnings, up to a maximum amount. As of January 1, 2020, the maximum insurable earnings amount is $573 per week or $54,2000 per year.
IMPLEMENTATION
The one-week waiting period for EI sickness benefits will be waived for new claimants who are quarantined so they can be paid for the first week of their claim. People claiming EI sickness benefits due to quarantine will not have to provide a medical certificate.
HOW TO APPLY
https://www.canada.ca/en/services/benefits/ei/ei-sickness.html
REFERENCES
https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/eligibility.html
https://www.canada.ca/en/services/benefits/ei/ei-self-employed-workers.html
Canada Emergency Response Benefit Act (CERB)
If you are not eligible for EI, CERB intended to be simpler and more accessible combination of, the previously announced Emergency Care Benefit and Emergency Support Benefit (replaced by CERB). If you are eligible for EI and for the CERB, you can only choose ONE program.
FOR WHOM?
- Wage earners, self-employed individuals, contract workers who do not qualify for Employment Insurance
- Those still employed but are not being paid due to insufficient work or employer requested them not to come to work
- Those who must stop working due to COVID-19 without access to paid leave or other income support
- Those who are sick, quarantined, or taking care of someone with COVID-19
- Working parents who must stay home without pay to care for children due to school closures
- Allow people to earn up to $1,000 per month while collecting the CERB.
- Extend the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their usual seasonal work as a result of the COVID-19 outbreak.
- Extend the CERB to workers who recently exhausted their EI regular benefits and are unable to find a job or return to work because of COVID-19
BENEFITS
$2,000 a month for up to four months. This amount is taxable.
IMPLEMENTATION
- Application portal to launch April 6 on a rolling basis based on the applicant’s birthday
- Individuals who’s birthday falls within Jan-Mar may apply April 6th, Apr-Jun birthdays may apply April 7th, July-Sept may apply on April 8th and Oct-Dec on April 9th
- May apply for payment for any four-week period falling between March 15, 2020 and October 3, 2020
- CERB will be paid every four weeks, with the first payment delivered within 3-5 business days of receipt of application for direct deposit or 10 business days by mail
HOW TO APPLY
https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra.html
REFERENCE
https://www.canada.ca/en/services/benefits/ei/cerb-application.html
Canada Child Benefit (CCB)
Increase in the tax-free monthly payment made to eligible families to help with the cost of raising children.
FOR WHOM?
- Parents or individuals who take care of, or have, children under the age of 18
- Parents or individuals who's child starts to live with, or returns to live with, after a temporary period with someone else
- A person who begins, ends, or changes a shared custody arrangement and gets custody of a child
- You, or your spouse or common-law partner
BENEFITS
The federal government is providing an extra $300 per child through the Canada Child Benefit (CCB) for 2019-20. This will mean approximately $550 more for the average family.
IMPLEMENTATION
This benefit will be delivered as part of the scheduled CCB payment in May.
HOW TO APPLY
Those who receive it already do not need to re-apply.
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview/canada-child-benefit-apply.html
REFERENCE
Special Goods and Services Tax Credit Payment
A one-time special payment by early May through the Goods and Services Tax (GSTC) credit for low- and modest-income families.
FOR WHOM?
You are generally eligible for the GST/HST credit if you are considered a Canadian resident for income tax purposes the month before and at the beginning of the month in which the Canada Revenue Agency makes a payment. You also need to meet one of the following criteria:
- You are at least 19 years old
- You have (or had) a spouse or common-law partner
- You are (or were) a parent and live (or lived) with your child
BENEFITS
The average additional benefit will be close to $400 for single individuals and close to $600 for couples.
IMPLEMENTATION
This benefit will be delivered as part of the scheduled CCB payment in May.
HOW TO APPLY
There is no need to apply for this payment. If you are eligible, you will get it automatically.
REFERENCE
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/gsthstc-eligibility.html
Canada Emergency Wage Subsidey (CEWS)
The Canadian Emergency Wage Subsidy is a tentative Federal Financial Program legislated in support of businesses affected by COVID-19.
FOR WHOM?
- Employers who suffer a drop in gross revenue by at least 15% in March, April or May when compared to January or February 2020
- Employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
- The government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19. Further details will be announced in the near term.
- Those organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
BENEFITS
The government is providing eligible employers a temporary wage subsidy of 75% of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week.
The government launched a calculator to help businesses determine eligibility: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-calculate-subsidy-amount.html
IMPLEMENTATION
The program will be in place for a 12-week period, from March 15 to June 6, 2020.
HOW TO APPLY
As the wage subsidy claim period will soon open, eligible employers that intend to claim the subsidy should act fast to determine whether they qualify and prepare their applications. By getting their application ready now, employers can help ensure that any payments through the wage subsidy program are provided quickly following the successful processing of their claim.
Click here for more information.
Eligible employers that intend to claim the subsidy will have to apply online through the CRA, through either My Business Account or a separate online application form beginning on April 27, 2020.
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
REFERENCES
Business Credit Availability Program (BCAP)
The Business Credit Availability Program (BCAP) is a tentative Federal Financial Program legislated in support of businesses affected by COVID-19.
FOR WHOM?
- Small and medium-sized enterprises requiring financing during the current period of significant uncertainty
- Credit-worthy businesses with viable business models whose access to financing would otherwise be restricted
BENEFITS
The Business Credit Availability Program (BCAP) will allow the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $65 billion of additional support.
IMPLEMENTATION
BCAP became available as of March 13, 2020.
HOW TO APPLY
Businesses seeking support through BCAP should contact financial institutions whom they have a pre-existing relationship for a financial assessment
For eligible business, the BDC process works fairly quickly and requests should be processed in just a few weeks.
REFERENCES
https://www.bdc.ca/en/pages/special-support.aspx?special-initiative=covid19
Mortgage Payment Deferral
Mortgage payment deferrals can help you during times of financial hardship — like unemployment or reduced employment due to the Coronavirus (COVID-19) outbreak.
FOR WHOM?
- All customers who are currently in good standing and have been impacted by COVID-19 can apply for mortgage relief from their bank.
- COVID-related mortgage deferral is available for an indefinite period and customers do not face a deadline for having to seek relief.
BENEFITS
A mortgage deferral helps you when you are struggling to make your payments by allowing you to skip your mortgage payment for a specified amount of time.
IMPLEMENTATION
The mortgage deferral agreement does not cancel, erase or eliminate the amount owed on your mortgage. At the end of the agreement, you will have to resume payment according to your regular payment schedule.
HOW TO APPLY
Your lender — your bank or your mortgage professional — can tell you if you are eligible for a mortgage payment deferral.
REFERENCES
https://cba.ca/mortgage-deferral-to-help-canadians-experiencing-financial-hardship-due-to-covid-19
Canada Emergency Commercial Rent Assistance (CECRA)
The CECRA can help support for small and medium-sized businesses that pay commercial rent due to the Coronavirus (COVID-19) outbreak.
FOR WHOM?
- It will help small and medium businesses cover their rents for April, May, and June.
- The program will provide loans, including some forgivable loans, to commercial property owners who are then to either lower or forgo the rent for small businesses during these months.
BENEFITS
Financial aid for commercial rent.
IMPLEMENTATION
Details will be on the way after the federal government convenes with individual provincial leaders.
HOW TO APPLY
Details to be announced shortly.
https://globalnews.ca/news/6826484/coronavirus-trudeau-business-rent/
Emergency Community Support Fund
The Emergency Community Support Fund is worth $350 million to support communities and non-profit organizations providing COVID-19 assistance.
FOR WHOM?
Organizations providing the following services:
- Increasing volunteer-based home deliveries of groceries and medications.
- Providing transportation services, like accompanying or driving seniors or persons with disabilities to appointments.
- Scaling up help lines that provide information and support.
- Helping vulnerable Canadians access government benefits.
- Providing training, supplies, and other required supports to volunteers so they can continue to make their invaluable contributions to the COVID-19 response.
- Replacing in-person, one-on-one contact and social gatherings with virtual contact through phone calls, texts, teleconferences, or the Internet.
BENEFITS
Details to be announced shortly.
IMPLEMENTATION
Details to be announced shortly.
HOW TO APPLY
Details to be announced shortly.
REFERENCES
https://www.cbc.ca/news/politics/covid19-trudeau-vulnerable-people-supports-1.5538577
Canada Emergency Business Account
To ensure that small businesses have access to the capital they need to see them through the current challenges, the Government of Canada has launched the new Canada Emergency Business Account.
FOR WHOM?
- The business is a Canadian operating business in operation as of March 1, 2020.
- The business has a federal tax registration.
- The total employment income paid of the business in the 2019 calendar year was between Cdn.$20,000 and Cdn.$1,500,000.
- The business has an active business chequing/operating account with the Lender, which is its primary financial institution. This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the Lender by 90 days or more as at March 1, 2020.
BENEFITS
This will aid businesses to quickly return to providing services to their communities and creating employment.
IMPLEMENTATION
This program is already legislated and available.
HOW TO APPLY
Small businesses and not-for-profits should contact their financial institution to apply for these loans.
REFERENCES
https://www.canada.ca/en/department-finance/economic-response-plan.html#businesses
Additional Federal Support Measures
CREDITS AND BENEFIT
DEFERRAL DATES
- Individuals, Self-employed, Corporations, and Trusts
- Student Loans
- Mortgage Support Payment Deferral
LOANS FOR BUSINESSES
COMPLETE LIST OF MEASURES FOR BUSINESSES
SUPPORT FOR STUDENTS AND RECENT GRADUATES
- Student Job Creation
- Canada Student Service Grant
- Canada Emergency Student Benefit
- Indigenous and Metis Support
- Student Grants and Scholarships
Key initiaves by the provincial governments to support employees, businesses and self-employed professionals:
Ontario (Childcare Subsidy, Provincial Land Tax Payment Deferral)
CHILDCARE SUBSIDY
While schools and child care centres are closed, parents/guardians/caregivers can apply for direct funding to offset the cost of buying materials to support their children’s learning, while they practice self-isolation and physical distancing.
Eligible individuals will receive a one-time per child payment of:
- $200 for children aged 0 to 12
- $250 for children or youth aged 0 to 21 with special needs
If you have more than one child, you must submit one application per child. Before you apply, please note:
- Only one parent/guardian/caregiver can apply for each child
- The individual who applies should have custody of the child
HOW TO APPLY
https://www.ontario.ca/page/get-support-families#section-2
REFERENCE
https://budget.ontario.ca/2020/marchupdate/index.html
PROVINCIAL LAND TAX PAYMENT DEFERRAL
The Provincial Land Tax (PLT) is the property tax paid in unincorporated areas of northern Ontario outside municipal boundaries. The Province collects the PLT to help fund important community services, such as policing, land ambulance, public health, and social services, on behalf of unincorporated areas.
HOW TO APPLY
Details have not yet been provided.
REFERENCE
https://www.fin.gov.on.ca/en/consultations/landtaxreform/
ADDITIONAL SUPPORT MEASURES
https://budget.ontario.ca/2020/marchupdate/action-plan.html
Alberta (Emergency Isolation Support)
EMERGENCY ISOLATION SUPPORT
- Eligible working Albertans can receive a one-time emergency isolation support payment of $1,146 if they are required to self-isolate or are the sole caregiver of someone in self-isolation and they have no other source of pay or compensation.
- This is a temporary program to bridge the gap until the CERB is available in April.
HOW TO APPLY
https://www.alberta.ca/emergency-isolation-support.aspx
ADDITIONAL SUPPORT MEASURES
https://www.alberta.ca/coronavirus-info-for-albertans.aspx
BC (BC Emergency Benefit for Workers, BC Climate Action Tax Credit)
BC EMERGENCY BENEFIT FOR WORKERS
The BC government has introduced a one-time, tax free payment of $1,000 to BC workers whose work has been affected by COVID-19. It's available for those now under Federal programs (Federal EI or CERB) as a result of COVID-19. This payment is also available for non-EI eligible workers. Qualifications include employees who have been or are laid off, self-employed, self-quarantined, taking care of someone who is sick and taking care of a child due to childcare closures.
HOW TO APPLY
The BC Emergency Benefit for Workers is a one-time payment that will be made in May 2020. Applications will be open in the coming weeks and further instructions from government will be given. BC residents who receive federal Employment Insurance, the new federal Emergency Response benefit are eligible.
BC CLIMATE ACTION TAX CREDIT
The BC government has enhanced payment of the BC Climate Action Tax Credit. They estimate 86% of families will see more money back in their pockets to a maximum of $218 for adults and $64 per child. Once you have filed tax returns, and are determined to be eligible for this, you will see the benefit.
HOW TO APPLY
The additional one-time payment will be made in July 2020 on top of the regular credit amount for qualifying individuals and families. You are eligible to receive the credit if you are a resident of BC, and you are 19 years or older, have a spouse or common-law partner, or are a parent who resides with your child. You will receive the credit payment from the Canada Revenue Agency (CRA).
REFERENCES
https://www2.gov.bc.ca/gov/content/employment-business/covid-19-financial-supports
https://www2.gov.bc.ca/gov/content/taxes/income-taxes/personal/credits/climate-action
ADDITIONAL SUPPORT MEASURES
https://www2.gov.bc.ca/gov/content/employment-business/covid-19-financial-supports
Manitoba
The Manitoba government has not yet announced any specific direct financial support for residents affected by COVID-19
REFERENCE
https://news.gov.mb.ca/news/index.html
ADDITIONAL SUPPORT MEASURES
https://manitoba.ca/covid19/
New Brunswick (New Operating Loans for Small Businesses, Working Capital for Mid-Large Employers, Self-Employed & Worker Emergency Income Benefit)
NEW OPERATING LOANS FOR SMALL BUSINESSES
The New Brunswick government will provide operating loans to support small businesses. Loans will help companies respond to challenges associated with COVID-19.
- Loans will be up to $200,000.
- Payments of interest and principal will not be required during the first 12 months.
- Opportunities New Brunswick (ONB) will work with a trusted partner to administer the application process.
HOW TO APPLY
More details will be available soon on the application process.
WORKING CAPITAL FOR MID-TO-LARGE EMPLOYERS
Opportunities New Brunswick will make available support to mid-to-large sized employers by offering working capital in excess of $200,000 to help manage the impacts of COVID-19 on their operations.
HOW TO APPLY
Large employers will be able to apply for this assistance directly from Opportunities New Brunswick.
REFERENCE
https://www.cfib-fcei.ca/en/advocacy/new-brunswick-covid-19-relief-measures-your-business
SELF-EMPLOYED AND WORKER EMERGENCY INCOME BENEFIT
A one-time income benefit of $900 will be provided to the self-employed and workers who have lost their job due to the state of emergency.
HOW TO APPLY
https://www2.gnb.ca/content/gnb/en/departments/post-secondary_education_training_and_labour/promo/nbweib.html
ADDITIONAL SUPPORT MEASURES
https://www2.gnb.ca/content/gnb/en/gateways/for_business/covid19.html
https://www2.gnb.ca/content/gnb/en/news/news_release.2020.03.0139.html
NF & Labrador (Self-Isolation Compensation)
SELF-ISOLATION COMPENSATION
The provincial government in Newfoundland and Labrador announced that it will compensate private-sector employers to ensure employees do not go without pay during the pandemic.
HOW TO APPLY
Details on the required documentation and processes for reimbursement to private sector employers will be released soon.
REFERENCE
https://www.gov.nl.ca/releases/2020/exec/0314n02/
ADDITIONAL SUPPORT MEASURES
https://www.gov.nl.ca/releases/covid-19-news/
Nova Scotia (Small Business Impact Grant)
SMALL BUSINESS IMPACT GRANT
Small businesses, non-profits, or charities ordered to close or substantively curtail their operations under the COVID-19 public health order may be eligible for the Small Business Impact Grant. The one-time grant is equal to 15% of sales revenue from either April 2019 or February 2020, up to a maximum of $5,000 per business. The business can choose which month to use to calculate the grant amount.
REFERENCE
https://novascotia.ca/coronavirus/docs/Small-Business-Impact-Grant-guidelines.pdf
ADDITIONAL SUPPORT MEASURES
https://novascotia.ca/coronavirus/#support
PEI (Emergency Income Relief Fund, Emergency Working Capital Financing, Worker Assistance Program)
EMERGENCY INCOME RELIEF FUND
The government of PEI has announced a program for the self-employed who have been significantly impacted by the COVID-19 pandemic. All sectors are eligible to receive a maximum of $500 per week from March 16 to March 29, 2020.
To be eligible for this fund, you must:
- Have declared business income on your most recent tax return.
- Have business income as your primary source of income.
- Be able to demonstrate direct financial losses resulting from the COVID-19 isolation measures at the time of application.
- Not be EI eligible or receiving any other income support (i.e. Business Interruption Insurance).
HOW TO APPLY
https://www.princeedwardisland.ca/en/service/emergency-income-relief-self-employed
EMERGENCY WORKING CAPITAL FINANCING
The Government of PEI has announced to help small businesses maintain normal business operations. Each qualified company is eligible to receive up to $100,000.
To qualify, you must be:
- An existing small businesses (startups not eligible) located and operating in the Province of PEI, and have been generating revenue on PEI.
- Registered to conduct business within the Province of PEI.
- Satisfactory in terms of credit rating and without any defaulted outstanding debt obligation on file in the province's Central Default Registry.
HOW TO APPLY
https://www.princeedwardisland.ca/en/service/emergency-working-capital-financing
WORKER ASSISTANCE PROGRAM
The Government of PEI provides funding for employers who have employees working a reduced number of hours. Private sector businesses who have workers who have seen a reduction in weekly hours by at least 8 hours are eligible to apply. Employee whose hours were reduced.
HOW TO APPLY
https://www.princeedwardisland.ca/en/service/emergency-relief-worker-assistance-program
ADDITIONAL SUPPORT MEASURES
https://www.princeedwardisland.ca/en/topic/for-business
Quebec (Temporary Aid for Workers Program)
TEMPORARY AID FOR WORKERS PROGRAM
This program offers financial assistance to meet the needs of workers who, because they are in isolation to counter the propagation of the COVID-19 virus, cannot earn all of their work income and are not eligible for another financial assistance program.
The lump-sum amount granted to an eligible person is $573 per week, for a period of 14 days of isolation. If justified by your state of health, the coverage period for an eligible person could be extended to a maximum of 28 days.
HOW TO APPLY
https://www.quebec.ca/famille-et-soutien-aux-personnes/aide-financiere/programme-aide-temporaire-aux-travailleurs/
ADDITIONAL SUPPORT MEASURES
https://www.quebec.ca/programme-aide-gouvernementaux-covid19/
Saskatchewan (Self-Isolation Support Program, Small Business Emergency Payment)
SELF-ISOLATION SUPPORT PROGRAM
This program offers financial assistance for Saskatchewan workers who are in self-isolation to counter the spread of the COVID-19 virus, and who cannot earn all of their work income and who are not eligible for another financial assistance program prior to the Canada Emergency Response Benefit, which comes into effect April, 2020.
HOW TO APPLY
https://www.saskatchewan.ca/government/health-care-administration-and-provider-resources/treatment-procedures-and-guidelines/emerging-public-health-issues/2019-novel-coronavirus/covid-19-information-for-businesses-and-workers/support-for-workers/self-isolation-support-program
SASKATCHEWAN SMALL BUSINESS EMERGENCY PAYMENT
The SSBEP provides a one-time grant for small and medium-sized enterprises directly affected by government public health orders related to COVID-19. Grants will be paid based on 15 per cent of a business’ monthly sales revenue, to a maximum of $5,000.
HOW TO APPLY
https://www.saskatchewan.ca/government/news-and-media/2020/april/09/small-business-support
ADDITIONAL SUPPORT MEASURES
https://www.saskatchewan.ca/government/health-care-administration-and-provider-resources/treatment-procedures-and-guidelines/emerging-public-health-issues/2019-novel-coronavirus/covid-19-information-for-businesses-and-workers
As the market is changing constantly, please contact us at any time as we are always available to discuss current market conditions or to analyze your particular circumstances.
If you would like to discuss any of the above, or have any additional questions that were not addressed, please call or email us at any time as we are always available to help and will be updating this page regularly. Keep Well & Stay Safe! The Outline Financial Team
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