Mortgage Payment Deferrals Announced
In a bold response to the current COVID-19 crisis in Canada, the six big banks announced this week that customers struggling to pay their mortgages will now be able to defer their monthly payments for a period of up to six months.
The coordinated announcement involve the following Canadian banks, the Bank of Montreal, RBC Royal Bank, Scotiabank, CIBC, National Bank of Canada and TD Bank. Participation in this new program will be granted to customers on a case-by-case basis and anyone interested in this support is asked to speak to their individual branch manager.
In a joint press release this week a spokesperson for the banks stated that they will be closely monitor the currently evolving economic conditions and will also consider other measures if deemed necessary.
This assistance program has come as a relief to many of those who have been effected by the current social distancing in place designed to fight the spread of the virus, but which is also causing many to loose income.
The Canada Mortgage and Housing Corporation (CMHC), which provides default insurance for insured loans has also announced that it will allow the same 6-month deferrals program for their own funded mortgage payments.
In addition to the mortgage payment deferral measures, CMHC published a reminder that it and other mortgage insurers offer additional tools to lenders that can assist homeowners struggling though financial difficulty. These tools include payment deferrals, loan re-amortization, capitalization of outstanding interest arrears and other eligible expenses and special payment arrangements.