COVID-19 Consumer Loan Payment Relief Application
Welcome to the COVID-19 Consumer Loan Payment Relief Application
Applications will be received until September 30, 2020
Who is this for?
The Payment Relief Program is designed to provide relief for members experiencing financial hardship due to the economic impacts of the COVID-19 pandemic. Within this program, individuals with consumer term loans and mortgages will be able to request their payments be deferred up to six months. Members who have already taken advantage of the initial two-month payment deferral program will be eligible to apply for an additional four months of payment deferrals.
For assistance regarding a consumer quick loan or to request a deferral on your commercial or agricultural loan, give our Contact Centre a call at 1.866.863.6237, press one then select option two to speak with a Lending Specialist, via online chat by selecting the chat button on our website during operating hours, or by secure messaging by logging in to your online banking.
What options are available?
A. Partial payment deferral - Under this option, designed to partially improve your cashflow, you may opt to reduce your current principal & interest payments to interest payments only for a period up to six months starting from the date of your last regular payment.
B. Full payment deferral (both principal & interest) - Under this option, your interest and principal payments will be deferred up to six months starting from the date of your last made regular payment. Your payment will be adjusted at the end of the deferral period to your remaining amortization in accordance with your original contract.
C. Full payment deferral (both principal & interest)- Under this option, your interest and principal payments will be deferred for up to six months starting from the date of your last made regular payment. Your payment will be adjusted at your term renewal to your remaining amortization in accordance with your original contract, or sooner upon your request.
What are the benefits?
This program is intended to allow you to free up and reallocate your cash flow and resources to other priorities during these challenging times.
At any time during the payment relief period when your circumstances improve, you are encouraged to contact us to resume or adjust your payments. You will be able to make additional payments in effort to catch up the balance of the deferred payments. Any catch up payments during the payment relief period up until your term renewal will not be considered prepayments and penalties do not apply.
What is the Impact?
During the deferral period interest continues to accrue. With any option chosen, you will pay more interest over the life of your loan than originally anticipated. Accumulated interest will be paid first when regular payments begin. Loans and mortgages with full payment deferrals may not see a principal reduction for several months until the interest is caught up. We expect payment increases be required to keep within the original amortization. By choosing a payment deferral option, it may take you longer to payoff your loan than originally contracted. The longer the deferral period chosen, the higher your total interest costs will be but you will not pay interest on interest.
To keep your repayment on track we encourage you to pay back your deferred payments as soon as you can financially afford to do so.
Deferred payments won't be reported to the credit bureaus as missed payments so they will not impact your credit score as a traditional missed payment would. While we don't expect the impact on your bureau from a deferral will be material, it’s important to understand your credit score is based on many factors, including the balance owing on your loan. As well, in order to process your request for deferral, we may be required to inquire to your credit score. This in turn may have a small impact on your credit score.
We recognize this is a difficult time for you and want to offer our assurance that we are here to assist you. It is important to carefully evaluate your financial situation and priorities before requesting a payment deferral. Each loan is as different as the person who holds it and with that choosing the option best for you may be a challenge. Rest assured, after we receive your application, you will receive a call to review your situation and to ensure you have the information required.
How to apply?
There will be some eligibility requirements in order to qualify for a loan payment deferral. For loans with multiple borrowers or guarantors, you must have their consent to submit a payment deferral request. Affinity is required to obtain consent from loan guarantors prior to providing loan payment relief. This may cause processing delays as we reach out to contact them.
This application form allows for deferral applications for one membership. If you have loans under multiple memberships, you will need to submit these separately.
If your payment is made through automated debit at another financial institution we will require your application at minimum 7 days prior to the payment date to process.
To help complete your request as quickly as possible, please obtain the following information from your online banking and/or statements and complete the online application form:
- Member #
- Loan #
- Payment amount
- Frequency of your payments
- Next payment date
- Where your payment is coming from
- Co-borrowers and/or guarantors names and contact info (if applicable)
Once your application has been submitted, you will receive notification that the application has been received on our end. After this point, we will be working on your application. We understand these are anxious times for you and we will respond to your request within 5 business days.Apply Now