New Zealand's retail banks are offering to defer repayments for all residential mortgages for up to six months for customers financially affected by Covid-19. "We are moving quickly through applications so that we can help provide our customers some immediate financial relief".
Canada's big banks have promised interest rate relief for up to six months to Canadian borrowers struggling to make their payments, but the CBC has reported that the fine print of those programs make it so that the deferred interest must be paid back at some point, which makes the loan longer and more expensive.
The Canada Mortgage and Housing Corporation is expanding the number of insured mortgages it is willing to buy from banks to give the banks more freedom to lend out more money to consumers and businesses and keep the economy humming.
Under the plan, payments are skipped for a period of time, and interest accrued is added to the mortgage's outstanding balance. So it may not be for everyone.
Beaumont said individual banks would have different approaches to implementing the scheme and they would assess the suitability for each customer who asked for a deferral.
Toronto-Dominion is "receiving thousands of requests daily for mortgage deferrals, and have processed thousands already", spokeswoman Julie Bellissimo said in an emailed statement. Those details, including eligibility criteria, will be available on bank websites.
As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. "At such an extraordinary time we must all stand together to get through this unprecedented challenge to New Zealand", Beaumont says.