"Given that many financial institutions have offered payment accommodations to their mortgage clients for up to six months, there continues to be a risk that a significant increase in mortgage delinquency will be observed in the third or fourth quarter of this year as these deferral agreements come to an end," the CMHC said. But most of those deferral programs were for six months at most, which means those who applied early are due to start making up those payments now or soon. The CMHC calculated that on average, that means Canadians deferred about $1 billion in mortgage debt every month since the pandemic began. Canada's big banks control about two-thirds of the mortgage market, so that figure suggests that one out of every six people with a mortgage has opted to defer at least one mortgage payment since COVID-19 began. Roughly 760,000 Canadians applied for some sort of mortgage deferral from a chartered bank since the pandemic began. Big banks slammed for charging customers interest on interest for deferred mortgage payments.And the CMHC report showed just how big the wave of deferred payments is. While the move gave borrowers some breathing room at a time when incomes were falling, those payments must be made in full at some point down the line. ![]() The report underlines just how significant the pandemic's impact on Canadian mortgages has been.Įarly on, in March and April, Canada's big banks announced sweeping mortgage deferral programs that would allow borrowers to skip some payments on their mortgages. The report is annual and typically looks at broad trends in the industry, but this year's numbers, as is the case with just about everything else, are viewed through the prism of COVID-19. In a report on Thursday, the Canada Mortgage And Housing Corporation looked at the state of the mortgage market in Canada. More than three-quarters of a million Canadian homeowners have either deferred or skipped a mortgage payment during the COVID-19 pandemic began, to the tune of about $1 billion a month, Canada's national housing agency says.
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