Lender launches first-of-its-kind program in Canada to keep homeowners home
Losing your job is tough. It's even tougher when you have a mortgage and you have no savings or other support system. You may even risk losing your house. With Haventree Bank, things are different:
According to The Globe and Mail* (Link Below), it doesn't have to be that way.
"Haventree has launched a first-of-its-kind program in Canada called NextJob. Essentially, it is designed to help people who have lost their job find new work.
"Why would a bank pay for a borrower's job seeker program?
- This program creates positive word of mouth, good reviews, and referral business.
- Customers helped by a business tend to stick around. “The average tenure of that customer increases when they go through NextJob,” Wilfred Pande, vice-president of mortgage servicing at Haventree That generates higher mortgage-renewal revenue.
- It’s also a good way for Haventree to keep expenses down. “It helps us [economically] by having the customer stay in their homes.” That’s because of the many administrative costs of taking someone’s home, some of which are not recoverable.
- There can be other financial benefits for a lender. A mortgage forbearance agreement, in which a lender agrees not to foreclose if the borrower meets the lender’s terms, could mean that the mortgage doesn’t show up in the lender’s bad loan statistics.
- Plus, it's the right thing to do!
Homeowner reemployment helps banks retain customers, build new relationships, and ultimately keep people in their homes.
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*https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-haventree-bank-launches-nextjob-program-for-homeowners-who-have-lost/