Equitable Bank reported earlier this week that as of mid-July, mortgage payment deferrals have declined to roughly 6% of its portfolio, translating to a deferred volume of approximately $1.66 billion.
The alternative lender said that was a significant drop from the 20% level, amounting to $5.6 billion, seen near the end of May.
“Equitable has been proactive in working with our customers to make the return to a more normal environment – a slope, rather than the ‘cliff’ being talked about in some quarters,” said Andrew Moor, president and CEO of Equitable Bank. “Our general feeling is that many of our customers called looking for a deferral just out of an abundance of caution in an uncertain economic scenario. Many of those have rolled off. And it’s clear, I think, that if there are people in financial trouble, that it’ll start to emerge now.”
Despite a large fraction of Equitable’s deferrals ending this month, Moor said that many clients will be able to service their payments regularly over the next few months due to widespread reopenings since late-spring.
Equitable’s Q2 profit stood at $52.5 million, which was 3% lower annually and 102% higher than the $25.9 million registered during the first quarter.
Latest data from the Canadian Bankers Association showed that more than 760,000 Canadians have been allowed to postpone their mortgages, representing around 16% of total mortgage volume in banks nationwide.