New figures released by the Canada Mortgage and Housing Corporation indicate that the number of mortgages in arrears in the province is up over 50 percent over last year.
The CMHC says that almost 1,500 Albertans are struggling to pay for their homes and could soon have them taken from them.
Earlier in August, CTV Calgary spoke with 71-year-old Peter Janzen and his wife Sharon.
The couple had taken out a $375,000 mortgage to finish renovations on their home, but when Peter became ill and couldn’t work, they couldn’t make the monthly payments anymore.
They’ve now missed four mortgage payments and their home has been put into foreclosure.
“With no money, it’s just out of the question to pay those kinds of payments,” Peter Janzen said.
The Janzens are among the growing number of Albertans who have been unable to keep up with paying for their homes.
The province’s arrears rate now sits at 0.41 percent, not too far above the national average, but in a zone that Alberta hasn’t been in in decades.
Faisal Karmali, a financial expert, says there isn’t much you can do if you’ve missed multiple mortgage payments, but you can be prepared.
“Those who have equity in their home might want to look at getting a line of credit against your home right away because you may need that as emergency cash reserve if you don’t have enough.”
Meanwhile, the Janzens have put their home up for sale.
“I knew at my age, the only way out would be to get rid of the house,” Janzen said.
They know that without the sale, homelessness could be a reality.
Karmali also says that homeowners facing these issues can also speak with their lender as well as a financial advisor to help you come up with a budget.
The CMHC has options to convert variable interest rates to fixed rates or offer short term payment deferrals on a temporary basis.
