Canada’s Big Six Banks Announce Financial Relief In COVID-19

Assistance will come in the form of mortgage payment deferral and relief on credit products and be handled on a case-by-case basis.

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Need to Know

  • Bank of Montreal, CIBC, National Bank of Canada, RBC Royal Bank, Scotiabank, and TD Bank have announced they will be working with both personal and Small Business Banking customers facing financial challenges due to COVID-19
  • Banks will be working with customers on a case-by-case basis to determine support based on individual needs, but support could include up to a six-month payment deferral for mortgages and relief credit products.
  • Canadians facing hardships are asked to contact their bank directly to discuss available options. 

Analysis

Finance Minister Bill Morneau has said that the economic impact from the coronavirus “will be real” and felt “across the country.” Ahead of a government relief plan announcements, the “big six” have stepped up offered financial help to Canadians impacted by COVID-19

Bank of Montreal, CIBC, National Bank of Canada, RBC Royal Bank, Scotiabank, and TD Bank have all agreed to immediately offer case-by-case assistance to both personal and small business banking customers. Assistance will vary from customer to customer but can include up to a six-month payment deferral for mortgages. 

With bars, restaurants and many small businesses closing to help flatten the curve and stop the spread of the virus, mortgage assistance should help business owners breathe a small sigh of relief. In addition to mortgages, customers can also expect the opportunity for relief on other credit products. Both individuals and business owners can contact their bank directly to discuss their individual situation and the options available to them. 

With daily life-changing moment-to-moment for many Canadians, these commitments by Canada’s top banks represent an important step and reiterate the resilience and strength of Canada’s financial system and major banks. 

Canada’s banks have a long history of assisting Canadians through challenging times. During the SARS outbreak of 2003, many banks lowered interest rates and deferring payments. With COVID-19 numbers now surpassing those of SARS, prompt action from Canadian banks will help many Canadians.  

The banks offering relief will continue to monitor evolving economic conditions and consider other measures if necessary.

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