—COVID-19 Update

In these uncertain times…

—Stay Calm…

April 22, 2020

Worldwide – 2,594,794 positive cases; 179,778 deaths; 698,066 recovered.

Canada – 38,923 positive case; 1,871 deaths, 13,594 recovered.

Ontario – 12,245 positive cases; 659 deaths; 6,221 recovered.

Kingston – 59 positive cases; 0 deaths; 54 recovered.

Government has announced a program for postsecondary students today and upcoming announcements for seniors.

Students who made < $5000.00 will be able to apply for assistance as of May 1, 2020. $1,250.00 per month. Also additional student jobs for the summer (extra 76,000 Canada summer jobs). Also opportunities for getting paid for volunteer work.

This morning, we have an update on the Canada Emergency Wage Subsidy (“CEWS”).

The application window will open on Monday, April 27 at 6:00 am.  You can apply using your CRA My Business Account or, alternatively, you can apply using a separate online application form that will be available.  You will need to obtain an online Web access code if you use the application form.  The CEWS will be processed at the payroll program (RP) account level, so you will have to file a separate application for each RP account.    There is no need to rush, however.  Applications will not be processed on a first-come, first-served basis. Instead, all applications received from April 27 to May 3 will be batch-processed at the same time on May 4.

The CRA has built in certain automated verification controls to guard against fraud and abuse.  Businesses that have had their application approved during the May 4 automatic verification process can expect to receive payment via direct deposit on May 6 or May 7.  The CRA estimates that some 10% of businesses that apply for the CEWS will not make it through the automated verification process but will require manual verification.  If you require manual verification, then your direct deposit will be delayed.

Before applying, you should have already calculated the estimated subsidy. The federal government has created an online calculator to help businesses determine what the CEWS will cover and to simplify the application process.  CRA officials said yesterday that businesses that go through the process of using the calculator will be able to print out the resulting information and use the printout to help expedite the online application process.  The calculator is on the CRA’s CEWS information page, at the section entitled “Calculate Your Subsidy Amount”.

The CRA’s CEWS information page also provides additional information for applicants about which employers are eligible and how they should count eligible employees.

The CRA has re-assigned 3,000 auditors to handle manual verification and 2,000 call centre employees to handle CEWS inquiries from businesses.

CRA officials reiterated that the objective of the CEWS program is to have businesses recall workers they may have already laid off and avoid additional lay offs.  At the same time, the CRA is warning employees who get hired back that they will be asked to re-pay any CERB funds they have received if the period for which they receive a CERB support overlaps with the period for which they are receiving a CEWS-subsidized paycheque from their employer.

Remember that any wage subsidies paid to a business will be treated as business revenue for tax purposes

April 17, 2020

Canada 30,659 positive cases; 1,251 deaths; 10,091 recovered.

Ontario 9,525 positive cases; 478 deaths; 4,556 recovered.

Kingston *** No new cases in 2 days!**** 55 positive cases; 50 recovered.

April 15, 2020

Canada 28,188 positive cases; 1006 deaths; 8,603 recovered.

Ontario 8,447 positive cases; 385 deaths; 3,902 recovered.

Kingston 55 positive cases; 0 deaths; 50 recovered.

New flexibility surrounding CERB applicants.

April 7, 2020

Canada 17,813 positive cases; 374 deaths; 3,931 recovered.

Ontario 4,726 positive cases; 153 deaths; 1,802 recovered.

Kingston 54 positive cases; 0 deaths

500,000 new N95 masks permitted via US border.

April 6, 2020

Canada 16,457 positive cases; 320 deaths; 2,845 recovered.

Ontario 4,038 positive cases; 119 deaths; 1,449 resolved.

Kingston 53 positive cases;  (5 additional over the weekend).

Big news is that shipment from 3M was stopped at the US border on Trump’s orders – optimistic that we will get 500,000 of the 3,000,000 ordered N95 masks from 3M.

U.S. cases confirmed over 336,000 with deaths over 10,000.

Italy, Spain & France all reported declines in their daily death tolls, roughly three weeks after the date of their respective lockdowns.

April 3, 2020

Global – 1,013,157 positive cases.

Canada –     11,747 positive cases; 152 deaths; 1,936 recovered.

Ontario –      3,255 positive cases; 81 deaths.

Kingston –          47 positive cases.

Local hospitals have freed up 400-500 beds should the need arise.

Trump has requested that N95 masks made by 3M in the U.S. no longer be shipped to Canada nor Latin America.

Any mortgages where Paradigm Quest administers the servicing (i.e. Merix, Lendwise,etc) have a new email address to make the request for deferred mortgage payments:

CAP@paradigmquest.com – Please see note from lender:

We require the customer name, mortgage number, property address, and how they have been financially impacted by COVID-19 (for example, illness, income disruption, self-isolation).  Our normal response times are within 24 hours, however during this time, email and voicemail response is 3-5 days in most circumstances. 

April 1, 2020

Kingston – As of Tuesday March 31, 2020 43 positive cases.

KFL&A confirms COVID-19 outbreak at local long term facility however will not reveal which facility.

Ontario – positive cases now 2392; resolved 689; deceased 37.

CERB (Canada Emergency Response Benefit) is largest economic program offered in Canadian history.

Trudeau not willing to commit to a time frame for pandemic stating that it will depend entirely on how Canadians behave at this time.

As of April 6, 2020, individuals will be able to go to Canada Revenue Agency online to apply for CERB.

Deferred payment information:

First National Financial LP advises clients to go to their account on client portal if they are registered, in order to make the request, or else to click on the following link:

First National Deferred Payment Request

March 31, 2020

Kingston – no new positive cases.

Ontario – positive cases now 1966;resolved 534; deceased 33.

March 30, 2020

Kingston – positive cases doubled over the weekend and now at 35.

Ontario – positive cases now 1706; resolved 431; deceased 23.

Prime Minister Justin Trudeau said Monday the 75-per-cent wage subsidy announced late last week will be available to large and small companies as well as charities and non-profit organizations to keep employees on the payroll and weather the COVID-19 pandemic.

The government announced Friday that it was boosting the wage subsidies to business from 10 per cent to 75 per cent with details of the Canada Emergency Wage Subsidy to come on Monday.

“If your businesses revenues have decreased by at least 30 per cent because of COVID-19, you will be eligible for this subsidy. The number of employees you have will not determine whether you get this support,” Mr. Trudeau told his daily news conference. “It will apply to non-profit organizations and charities as well as companies both big and small.”

March 27, 2020

In view of the fact that updates are coming in daily, we think it is best to include up to date information according to timelines…

News as of March 26, 2020

Kingston & Area declares State of Emergency

Kingston – 2 new COVID-19 cases; Total 16 cases

Spread of disease happening via community contact and no longer exclusively via travel abroad.

Ontario – 170 new COVI-19 cases; Total 835 cases

New Assessment Center in Napanee

Emergency Alert sent out to all travellers returning home : “You are required by law to self-isolate for 14 days”

B2B Bank: offers deferred payments for initial period of up to three months – if you have online banking B2B encourages you to email them via: https://onlinebanking.b2bbank.com/RetailB2B/servletcontroller?lang=en

First National Financial LP: currently approving three-month deferrals on insured and conventional residential mortgages upon request. Borrowers must confirm in writing or verbally that they have had a disruption to income or employment as a result of COVID-19.

PLEASE NOTE THAT THE CONTACT LIST FOR LENDERS PRESENTED HEREIN WAS UPDATED MARCH 26, 2020.—

—https://www.youtube.com/watch?v=ObWrdYQ_6xY

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—In these uncertain times….

—Ok, so the answer is not to panic.

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—But what should we do?

—Status of COVID-19…

—11 cases in Kingston

——572 cases in Ontario:

8 resolved, 8 dead

—2751 cases in Canada:

112 resolved, 27 dead

—Status of COVID-19 in Kingston

Memorial Center is now a COVID-19 Assessment Centre

Returning from travels?

You must self-isolate for 14 days

How to self monitor….

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Government assistance announcement March 25, 2020

—$2,000 a month for four months to individuals who lost their work as a result of the COVID-19 pandemic.

—Application launch forthcoming

—Families to be able to obtain funds within 10 days of application

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Self Isolation:

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—So if you are self-isolating, how do you pay for your mortgage?

—What are lenders / insurers doing about this situation?

—Lenders & insurers have declared assistance to all Canadians

Up to 6 months of deferred mortgage payments could be available

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—Deferred mortgage payments are discretionary.

—Lenders maintain the legal right to timely repayment of their mortgages and mortgage payment deferral

—Programs are offered at their sole discretion and each lender has different policies on how they handle these requests

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—No lender is going to forgive your mortgage payment.

—A deferred payment program allows you to roll a defined number of mortgage payments into your mortgage, however you are still expected to ultimately pay all of the money you owe, with interest. (referred to as “capitalization”)

—What lenders are we talking about?

—Note: These programs are generally restricted to “Institutional” lenders only.

—Banks and mono-line lenders

—Private mortgages do not typically qualify (although we are making the requests and some are being considered).

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—True financial hardship must be demonstrated.

—These programs are for customers who are genuinely struggling to make their next mortgage payment. They may have lost their job(s) and/or a portion of their income, and they do not have the cash reserves necessary to draw on.

*** If you are not in this group, you are not likely to be eligible.***

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Must be prepared to submit a detailed breakdown of your personal assets, current income and expenses.

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—Deferring mortgage payments will not hurt your credit score.

—A lender-approved deferment is not a missed payment–and it will not appear on your credit bureau report as such.

—Lenders are also typically offering to waive any fees associated with these types of programs during the COVID-19 crisis.

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—Deferred Payment Programs are typically capped at six months.

—Deferring the first payment will be easier than deferring the second one, and so on. Right now, six months is about the longest deferment you should expect to receive, but no lenders will do this all at once. Most of them will require that you reach out with a request for each individual payment that you are going to miss.

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—A mortgage deferred payment program is for your mortgage payment only.

—Property tax installments and insurance premiums are entirely separate from these programs and must continue to be paid.

—If municipalities and insurance companies offer similar programs (which most municipalities are currently doing), they should be contacted separately.

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—Other options may also be available to assist you:

i)lenders also have the ability to refinance your mortgage to pay out other debt(s) subject to qualification (via Welch & Co Team),

ii)restore your original amortization (which lowers your payment amount),

iii)hold a payment (during a temporary suspension of income),

iv)offer you a reduced payment for a specific time.

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—Rental property investors may also be eligible.

—Property investors with tenants who have stopped making their rent payments will also be considered, however they will be assessed by the same rigorous criteria to determine true financial hardship

—Note: Some provincial governments have introduced tenant relief programs. Rental-property owners can also encourage their tenants who have been adversely impacted by COVID-19 to apply for these programs if available.

To contact your lender regarding deferred mortgage payments please use the following phone numbers please:

—Appraisals & Appraisers

—A new update from the Appraisal Institute of Canada has come out on March 25, 2020

—Appraisers have been deemed to be an essential service

—New measures in place in order to ensure that appraisers are not put at risk

—Appraisals & Appraisers

Clients will be asked to assist appraisers by providing the following in order to avoid entry into properties:

• interior photos of your property to the appraiser to be included in the report in place of photos that they would normally take themselves during an in-person interior inspection of your property.

—A video tour of your property carried out by video-calling, FaceTime, WhatsApp, etc. – if you are willing and have the technology to do so.

—any building specifications that you may have

—Refinances – closings

—As of March 25, 2020 we have several lenders that are requiring that all refinances be closed via FCT or FNF rather than a solicitor (and likely more to come)

—MCAP

—RMG

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—Communication is the key.

—If you are going to miss your mortgage payment, contact your lender first! Be honest with them about your circumstances and have a plan for how you are going to get back on track.

—If you are about to miss a payment and cannot get through on the phone lines, send your lender an email. Lenders may waive NSF fees if you miss a payment but can demonstrate to them that you attempted to notify them in advance.

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—Certain lenders have designated online portals to make your skip-a-payment requests:

—MCAP: https://www.mymcap.ca/ login to

and submit a Skip-A-Payment request from the self-serve options menu.

—RFA/ Street Capital: https://www.rfa.ca/covid19

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—Please be PATIENT with your lender!

—Things are evolving every day and none of us have lived through similar circumstances before

—Lenders are still conducting business as usual, although turn around times are currently much slower than under normal circumstances

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