What the Major Financial Institutions are Offering in COVID – 19 Aid

The major Canadian banks have created various programs to help Canadians through the economic uncertainty of COVID-19. While these programs may help in the short-term please do remember that there will still be interest accruing on mortgages and lines of credit.

This post is for your information so you can compare and contrast the different programs each bank is offering not to provide financial advice.

Our broker of record received a phone call from the brokerages financial advisor at CIBC (where we bank) where he kindly explained everything he could do to help us with mortgages, lines of credit etc. We were pleasantly surprised by the level of service our branch is currently offering.

*All information is taken directly from the banks websites and consolidated for ease of comparison*

Mortgages

CIBC

You can request to defer your regular mortgage payments for up to 6 months if you’re experiencing financial hardship caused by COVID-19.

TD

If you are experiencing financial hardship, you can request to defer the equivalent of up to 6 monthly payments.

By deferring payments, you are not paying the mortgage principal, and interest will be capitalized (i.e. added to the outstanding mortgage balance so your balance will increase). It’s important that you understand this impact.

Learn more about your mortgage deferral options.

You’ll first be directed to the EasyWeb login page. If you are not currently registered for EasyWeb, register online today.

If you have Credit Protection insurance, you may request to defer your premium charges, separately. See below for details.

RBC

Deferral payments for Canadians in need of immediate cash-flow, including up to six month deferral for mortgages

Scotiabank

Mortgage payment deferrals are available for customers experiencing hardship. A mortgage payment deferral means that you will not be required to make regular payments on your mortgage (principal, interest, and property taxes, if applicable) for up to 6 months.

During the time you defer your mortgage payments, interest will continue to accrue and will be added to your mortgage account balance at the end of the deferral period. This means your payments will be slightly higher after the deferral period ends. You will pay more in interest over the life of your mortgage, but a deferral will also help with short-term cash flow

BMO

If you’re a homeowner or own a rental property and have a mortgage with BMO, you may be able to defer up to six months of your mortgage principal and interest payments.

Mortgage deferral does not mean mortgage forgiveness. It means payments are not collected when due for the defined period of time that you need temporary financial relief, up to a maximum of six months.

Credit Cards

CIBC

If your financial situation has been impacted by COVID-19, you can request to defer your credit card payments for up to 3 months, and benefit from an effective lower interest rate of 10.99% during the deferral period that will be applied as a rebate on your upcoming statement(s).

TD

If you are directly impacted by COVID-19 and qualify, TD will credit you 50% of the interest charged for 3 months. You will receive this in the form of an interest credit on your statements. To learn more visit our FAQ page.

RBC

Deferral payments for Canadians in need of immediate cash-flow, including up to six month deferral for credit cards

Scotiabank

A credit card monthly minimum payment deferral means that you will not be required to make the minimum payment required on your credit card account during your deferral period (for up to 3 months).

BMO

Offers up to a 6-month payment deferral on loans, cards, and lines of credit with no fee (your payment will be deferred but interest will continue to accrue) and no changes to the terms of your BMO account.

Loans and Lines of Credit

CIBC

 You can request to defer your regular payments on loans and lines of credit for up to 2 months to help manage financial challenges caused by COVID-19.

TD

If you’re experiencing financial hardship due to COVID-19, you can request to defer the principal payments on the Fixed Rate Advantage Option on your Line of Credit, for up to 4 months. You’ll still have to pay the interest amount, one business day prior to your regular payment date. It is also important to understand that by deferring payments it will take longer to pay down the principal of your Fixed Rate Advantage Option.

RBC

Deferral payments for Canadians in need of immediate cash-flow, including up to six month deferral for lines of credit

Scotiabank

A line of credit monthly minimum payment deferral means that you will not be required to make the minimum payment required on your line of credit account during your deferral period (for up to 3 months). 

BMO

Offers up to a 6-month payment deferral on loans, cards, and lines of credit with no fee (your payment will be deferred but interest will continue to accrue) and no changes to the terms of your BMO account.

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