Almost 500,000 requests for mortgage deferrals due to the ongoing COVID-19 pandemic have already been completed or are in process, according to the Canadian Bankers Association (CBA).
According to CBA, the country's six largest banks have deferred more than 10% of the mortgages in their portfolio, allowing affected Canadians to increase their cash flow by roughly $663 million per month given an average monthly mortgage payment of $1,326.
Read more: Hundreds of thousands of homeowners seek mortgage payment deferral
“Canada's banks are standing by Canadians and have stepped up to help our country work through these challenging times,” said Neil Parmenter, president and chief executive officer of CBA. “The COVID-19 pandemic is the most urgent challenge our country has faced in recent memory, and banks will continue to make a positive difference for those who need their help and support.”
Among the Big Six banks to reveal their mortgage deferral numbers is Toronto-Dominion Bank (TD Bank), which told Reuters last week that it had so far approved 60,000 requests for mortgage deferrals – representing “virtually all” of the requests it has received.
“Governments have introduced programs that are unprecedented... and of a scale that should weather the storm over the next while,” Bharat Masrani, chief executive officer of TD Bank, told Reuters. “If this continues for a longer period, governments will act... they do have more capacity if they need to do more.”