Canadian consumers who might be struggling to maintain their vehicle payments stemming from the consequences of COVID-19 could be receiving a lifeline.
According to a news release, Canada’s six largest banks on Tuesday announced plans to provide financial relief to impacted Canadians.
Effective immediately, Bank of Montreal, CIBC, National Bank of Canada, RBC Royal Bank, Scotiabank and TD Bank have made a commitment to work with personal and small business banking customers on a case-by-case basis to provide flexible solutions to help them manage challenges such as pay disruption due to COVID-19; childcare disruption due to school closures; or those facing illness from COVID-19.
This support will include up to a six-month payment deferral for mortgages and the opportunity for relief on other credit products, according to the banks.
Officials said individual Canadians or business owners facing hardship are encouraged to contact their bank directly to discuss options that could be available to them.
“These measures are an important first step and underscore the resilience of Canada’s financial system and the strength of our major banks. Banks will monitor evolving economic conditions and consider other measures if necessary,” the banks said.
“Canada’s banks have a long history of standing by Canadians through challenging times and this commitment will continue throughout this crisis and beyond,” they added.