Canada’s six largest banks have announced they will be allowing the deferral of bank mortgage payments for up to six months amid the coronavirus pandemic.
Bank of Montreal, CIBC, TD Canada, National Bank of Canada, RBC Royal Bank and Scotiabank say their plans will help those affected by the financial consequences of COVID-19.
There will also be an opportunity for relief on credit products.
They are encouraging individual Canadians and small businesses owners to contact their bank directly to discuss the options available to them.
The Canadian Bankers Association also announced Tuesday the country’s six biggest banks are working together in their efforts to limit the spread of COVID-19 by temporarily limiting branch operating hours and reducing the number of branches while maintaining critical services.
The association says special care will be given to branches in rural communities.
It says many banking services will continue to be available through bank machines, mobile apps, bank websites, and telephone banking.
RBC and CIBC both said they would be offering limited hours at several of their branches, while some will temporarily close.
“The message that CMHC is putting out is just that no Canadian should default as a result of this health crisis,” said James Laird, president of CanWise Financial, an independent mortgage brokerage, and co-founder of Ratehub.ca
On Monday, CMHC announced it would bring back a revised version of the Insured Mortgage Purchase Program it used during the 2008-09 financial crisis. The government plans to purchase up to $50 billion worth of insured mortgage pools.
The move, CMHC said, is meant to “provide stable funding to banks and mortgage lenders in order to ensure continued lending to Canadian consumers and businesses.”
Mortgages with other lenders
For insured mortgages, there are a variety of tools that can help borrowers stave off default.
Possible solutions include allowing borrowers to defer or temporarily reduce payments, stretching out the mortgage term or amortization period, adding missed payments back onto the mortgages and lowering the mortgage rate.
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You can also meanwhile follow https://www.instagram.com/pouriasadeghi.ca/ to stay up to date with the effect of these changes on real estate market.