31Aug

Bank regulator changes rules for mortgage deferrals starting now

Canada, COVID-19

[CBC – August 31, 2020]

As of July 30, there were roughly $170 billion in outstanding residential mortgage deferrals for big banks

Canada’s federal banking regulator is phasing out requirements around mortgage deferrals for homeowners hard-hit financially by the COVID-19 pandemic.

The Office of the Superintendent of Financial Institutions says deferrals granted starting Monday and until the end of September will be able to get special capital treatments for loan and premium payments for up to three months, rather than six.

For banks, the rules mean they won’t be subject to higher capital requirements because the deferred mortgages won’t be considered past-due.

The majority of the mortgage deferrals banks faced were approved in March and April as the pandemic took an economic toll on the country with non-essential businesses shuttered and millions out of work or watching their incomes crash.

As of July 30, there were roughly $170 billion in outstanding residential mortgage deferrals for largest six banks, with the majority set to mature over the next two months.

Come October, the special rules implemented as a result of the pandemic will be removed.

Share this post

Related Posts

09Apr

Fewer listings, strong demand boosts Metro Vancouver real estate

[Source: CTV News, April 4, 2017] VANCOUVER - Home sales in Metro Vancouver are bouncing back after a dismal February,... read more

24Mar

Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses

[Department of Finance Canada - March 18, 2020] Backgrounder The Government of Canada is taking immediate, significant and decisive action to... read more

16Jan

Money markets are betting Bank of Canada might make ‘micro rate cut’ next week

[Financial Post - January 12, 2021] TORONTO — Money markets see an increased chance of the Bank of Canada cutting... read more

28Jul

New stress test rate makes it more difficult for home buyers to qualify for mortgage

[Toronto Sun - July 3, 2021] Home buyers have contended with a series of costly hurdles in this ongoing, high-octane... read more

09May

The pandemic has pushed many financially stressed households to the brink. Here’s a budgeting guide to navigate the crisis

[Vancouver Sun - April 29, 2020] The COVID-19 pandemic isn’t just a health crisis. It’s also a financial crisis affecting... read more

18Feb

As pandemic lockdowns drag on, Canadians are tapping HELOCs to fund home renos

[Globe and Mail - February 15, 2021] Cory Cook’s initial plan was to build out his backyard deck. But as... read more

25Sep

Canadian borrowers will feel this week’s U.S. interest rate hike

[CBC News - September 24, 2018] The world's biggest central bank is expected to raise rates this week — and... read more

18Oct

“Breaking Bad – News” – Big Changes Ahead

[Source: Synergy Mortgage, October 18, 2017] Stringent NEW Canadian Mortgage Rules take affect January 1st, 2018. Office Of The Superintendent Of... read more

20Sep

Rental sector navigates perilous times

[Globe and Mail - September 9, 2020] It’s been a year fraught with uncertainty and challenges for landlords and tenants,... read more

05May

The Tax-Free First Home Savings Account (“FHSA”) explained

[Invis - May 5, 2022] If you or someone you know is saving for a downpayment on their first home,... read more