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Mortgage deferrals at big Canada's big banks pile up, association says

Last Updated Apr 3, 2020 at 6:55 am PDT

FILE - Houses are seen in an aerial view in Langley, B.C., on Wednesday May 16, 2018. The Canadian Bankers Association says the country's six largest banks have deferred more than 10 per cent of the mortgages in their portfolios as borrowers affected by COVID-19 seek financial help. THE CANADIAN PRESS/Darryl Dyck
Summary

Canada's six largest banks allowed customers to defer payments on over 10% of mortgages in their portfolios, CBA says

Almost 500,000 requests for mortgage deferrals or to skip a payment have been completed or are in process

The six largest banks said they would allow customers to defer mortgage payments for up to six months

TORONTO — The Canadian Bankers Association says the country’s six largest banks have allowed customers to defer payments on more than 10 per cent of the mortgages in their portfolios as borrowers affected by COVID-19 seek financial help.

The association says almost 500,000 requests for mortgage deferrals or to skip a payment have been completed or are in process.

Canadian banks announced a mortgage deferral program over two weeks ago in a move to help those hurt by the steps taken to slow the spread of the novel coronavirus.

Related video: What you need to know about mortgage deferrals 

The six largest banks said they would allow customers to defer mortgage payments for up to six months among other changes.

More than two million Canadians applied for employment insurance in recent weeks as a result of the COVID-19 pandemic as businesses shut their doors or scale back operations.

The federal government has responded with the new Canada Emergency Response Benefit as well as billions in new spending to help the economy and fight the virus.

This report by The Canadian Press was first published April 3, 2020.

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