Today, the President of the Canadian Bankers Association, Neil Parmenter announced, “Effective immediately, RBC, TD, BMO, Scotiabank, CIBC and National Bank offer support for  Canadians impacted by the Covid-19 including a six month payment deferral for mortgages, and opportunity for relief on other credit products.  Talk to your bank.”

Due to the disruptions caused by Covid-19 and its impact on businesses and customers, the big six banks stated in a joint press release today that they are all committed to providing flexible solutions for those facing financial hardships. 

The large financial banks have not been clear on how they plan to provide support to their clients. Details such as postponing mortgage payment interest-free and other financial services remains uncertain.

Some banks, such as Scotiabank reported that they will review requests for mortgage referrals on a case-by-case basis and that there is no guarantee that a blanket interest free payment would apply.

The National Bank’s position on interest free deferred mortgage payments also echoes that client files have different scenarios and that loan criteria varies; therefore, it is unsure if mortgage payments will be deferred without added interest.

The other banks have yet to release any more specific information.

Taking the lead on this measure to assist struggling homeowners comes from the Canada Mortgage and Housing Corporation (CMHC).  Their announcement is focused on ensuring people do not default on their house payments during the Covid-19 emergency.