Robert: Canada’s big banks are offering mortgage payment deferrals

Canada’s big banks are allowing customers to defer their mortgage payments for up to six months in response to the financial impacts of the COVID-19 coronavirus pandemic.

In a tweet, Neil Parmenter, president of the Canadian Bankers Association, said the measures are “effective immediately.”

In a joint press release, the big six banks (RBC, TD, BMO, Scotiabank, CIBC and National Bank) said they are committed to work with retail and business customers on a case-by-case basis to provide “flexible solutions” for those facing hardships.

Similarly, Canada’s housing agency, the Canada Mortgage and Housing Corporation (CMHC), has been working to ensure homeowners aren’t left struggling.

“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.

Deferred mortgage payments are typically added back to the mortgage amount, meaning those who opt to defer will eventually pay back the payments they missed.

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