Banks in Canada last month announced plans to provide financial relief to Canadians impacted by the economic consequences of COVID 19. Banks assembled quickly and made a commitment to work with their customers to provide flexible solutions to help them manage through financial hardship. This support includes up to a six-month payment deferral for mortgages.
Almost 500,000 requests for mortgage deferrals or skip a payment have already been completed or are in process since Canada’s banks announced a mortgage deferral program over two weeks ago. Taken together, the country’s six largest banks have deferred more than 10% of the mortgages in their portfolio. The large number of customers who have been helped continues to grow as a result of concerted efforts by front-line workers, contact centre agents and operations teams working diligently.
“Canada’s banks are standing by Canadians and have stepped up to help our country work through these challenging times,” said Neil Parmenter, President and CEO, Canadian Bankers Association. “The COVID-19 pandemic is the most urgent challenge our country has faced in recent memory, and banks will continue to make a positive difference for those who need their help and support.”
According to the Canada Mortgage and Housing Corporation, the average monthly mortgage payment of Canadian homeowners is $1,326. Therefore, the cash flow freed up for Canadians from the deferrals completed to date is roughly $663 million per month, or nearly $2 billion per quarter. This number will increase over the coming weeks.
Banks will continue to support individuals, businesses, employees, and communities across Canada as we come together to manage the financial uncertainty and economic disruption faced by our families, friends and neighbours.
Please visit your bank’s website for more information on mortgages and deferring payments:
Source: Canadian Bankers Association
The Canadian Bankers Association is the voice of more than 60 domestic and foreign banks that help drive Canada’s economic growth and prosperity. The CBA advocates for public policies that contribute to a sound, thriving banking system to ensure Canadians can succeed in their financial goals. www.cba.ca