Newsletter March 2020-2

Stay Safe and be HEALTHY!!!

This is relevant today more than ever!
Who would have thought a few weeks ago that this could happen to our world?

What are people’s biggest concerns today?

1. Employment. What will happen with income if there are problems with employment, if there are layoffs or cut hours?
2. Mortgage payments, how to handle them?
3. Traveling. What to do with planned trips and insurance coverages purchased in advance?
4. Our office meetings in the coming days.

Now in a little more details:

1. Employment. What will happen with income if there are problems with employment, if there are layoffs or cut hours?

On the home page of our website, in the top right corner, we placed a banner – link to government initiatives, directed to provide support for people and businesses (mostly small and medium sized) https://www.totrov.com/en/home-en/.
Here are a couple points below:

• Deadline for filing taxes has now been extended from May 1st to June 1st.
• There is now an option to extend payment of outstanding balance by 4 months to August 31st.
• At the same time, those that have to file taxes with payments on GST/HST credit, Guaranteed Income Supplement and Canada Child Benefit, shouldn’t wait and should submit as soon as possible.
• If somebody is to be receiving EI – Employment Insurance benefit, starting March 15th, waiting period of 7 days has been waived until further notice.
• There is no requirement to submit a medical certificate to obtain EI sickness benefit.
• Introduction of a new benefit “Emergency Care Benefit” in the amount of $900 every two weeks for those unable to receive EI (even for self-employed), that are under quarantine or have an infection.
  For those that have to stay at home and help elderly, somebody infected, as they are unable to receive EI sickness benefits.
  Application for this benefit will only be available in April.
• Individuals receiving a GST/HST refund, in May of 2020 will receive double the amount, up to $400 per person or $600 per family.
• Individuals, receiving Child Tax Benefit, government will allocate $300 per child and the money will be received in May.
• For small and medium size businesses there is a subsidy that will be equal to 10% of remuneration paid during 3 months period up to certain maximum.
• All major banks have confirmed that they will allow deferred payments of up to 6 months, but the applications will be reviewed on case-by-case basis individually.

2. Mortgage payments, how to handle them?

As mentioned above, banks will review applications for deferment on your mortgage payments. Your contracts, especially with major banks, will typically have a skip-a-payment (typically one month) option. Smaller banks do not offer this option, but right now, all financial institutions are trying to help the borrowers.
But you have to remember and understand, this does not apply to everyone.
Banks are sending updates for us to communicate to you: if you have not been affected by the layoffs, forced vacation or quarantine, do not call the bank, you are taking up a line and the banks are unable to help those that really need the help.
The banks will not be allowing just anybody to defer on their payments, this is discussed and the decisions are made on specifics of each case.
If you are unable to reach your bank, you have to submit the application online.
Also, payments on interest are unlikely to be removed. The idea behind deferred payments is that you are postponing payment of interest, but it does not eliminate it. You are basically given an opportunity to spend less money today, while you are going through hardship of earning (if such situation happens due to coronavirus).

3. Traveling. What to do with planned trips and insurance coverages purchased in advance?

You know that our office sells a lot of insurances for those traveling abroad and our visitors. Currently, due to COVID-19, traveling in both directions is uncertain, so you can always contact our office and get consultation on already existing coverage or on processing new coverage.
Unfortunately, now that we are all aware of the problems with the Coronavirus, we are unable to cancel our trips and receive a refund based on the Trip Cancellation coverage, if the coverage was obtained after mid-March. If a person has purchased insurance with Trip Cancellation prior to the point of Pandemic, the person would be able to cancel their trip and receive a refund.
For Canadians leaving the country, costs associated with treating COVID-19 will not be covered, even if the coverage was purchased in advance.
March 13th, 2020, Canadian Government made recommendation for all Canadians to avoid travels outside the country due to the pandemic across the world and a rapidly changing situation. For that reason, insurance companies will not be taking responsibility for a risk of COVID-19 infection.
Unfortunately, for the visitors that are about to come or have purchased coverage starting mid-March, insurance companies will not be covering costs associated with Coronavirus. People already in Canada for some time and whose coverage was purchased prior to arrival, have full coverage for all occasions, including the new virus. We wish you all to stay HEALTHY!!!

4. Our office meetings in coming days.

You know that we are always happy to see you and ready to assist you at any time.
Our office is open 9 a.m. to 9 p.m., Monday through Friday and some Saturdays by appointment.
Over the next few days, we will continue taking requests for meetings but they will be done over the phone. Very soon we will return to our normal schedule and will be implementing newest technology, for example, installing a program that would allow us to share screen with you, where you can see what I see on my screen.
Life goes on and everything will be GREAT!!!
Also, I hope that I do not have to remind everybody on the current safety measure: if you have recently arrived from abroad or if you are sick, please refrain from visiting public places.

Serguei Totrov
Financial Advisor, CFP, CLU, EPC
Mortgage Broker, AMP
416-222-0533
www.totrov.com

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