Banks Offering Financial Relief During COVID-19
There are banks offering financial relief during coronavirus due to the ongoing struggles Canadians are experiencing. Many stores and businesses have had no choice but to close up shop. All the shutdowns are great for stopping the spread of COVID-19, but not ideal for personal finances. Many people have experienced a loss or reduction of income. This has made meeting debt and other financial obligations difficult.
Fortunately, Canadian banks have responded by providing financial relief to their clients. To learn more about financial relief available from your bank, continue reading below.
Financial Relief From the Big Six Canadian Financial Institutions
Canada’s six biggest banks have responded the fastest to the COVID-19 pandemic. They have also set the precedent for smaller banks. Nearly all banks are offering some type of financial support now.
Royal Bank of Canada (RBC)
Payment deferrals to help cash flow, applicable for a period of six months. It’s also available for mortgages, credit cards, installment loans and car loans.
- Waived stop payment fees.
- RBC has stated they give relief for credit card interest charges. If you qualify, receive minimum payment deferral, restructured credit and refinancing.
- General support for customers who are ill, facing job loss or affected by other factors. Schedule a call with an advisor and you could receive relief.
- Businesses can also receive financial support. Relief for businesses based on specific circumstances.
- Additional support for online banking.
To receive relief, you must apply on RBC’s website.
Toronto-Dominion Bank (TD)
- Payment deferrals to ease financial struggle resulting from COVID-19. Available for insurance premiums, personal loans, lines of credit, credit cards, mortgages and car loans.
- Interest accrues on deferred payments. In some cases, interest compounds.
- For credit cards, you can request interest rate relief. If you qualify, you will receive 50% of the interest charged for three months.
To receive relief, you must apply on TD’s website.
Bank of Nova Scotia (Scotiabank)
Payment deferrals for mortgages, loans, credit cards and lines of credit. Relief given on a case-by-case basis. Individuals experiencing job loss or a reduction in income should apply.
- Waived Interac e-Transfer fees and stop payment fees. Effective April 21 to June 30, 2020. The fees will be automatically waived, so you do not need to apply. It’s available for both businesses and individuals.
- Deferred payments are not reported to the credit bureaus as missed. This means your credit will not decline as a result of a deferred payment.
- Priority service for frontline workers in healthcare and seniors.
- Additional support for online banking.
To receive relief, you must apply on Scotiabank’s website.
Bank of Montreal (BMO)
Financial relief for:
- Individuals on a case-by-case basis. Payment deferrals are applicable on mortgages, loans, lines of credit and credit cards.
- Businesses on a case-by-case basis.
- Increasing debit card daily limits.
- Western Union money transfer fees are dropping to a $5 flat fee. Effective May 4 to June 30, 2020.
- Additional support for online banking.
To receive relief, you must apply on BMO’s website.
Canada Imperial Bank of Commerce (CIBC)
Payment deferrals for:
- Mortgages for up to six months.
- Credit cards for up to three months. Potential eligibility for reduced interest rate.
- Loans and lines of credit for up to two months.
- Additional support for online banking.
To receive relief, you must apply on CIBC’s website.
National Bank of Canada (NBC)
Payment deferral for:
- Your next mortgage payment.
- The next loan payment.
- Your minimum monthly credit card payment. Option to temporarily increase your credit card limit.
- Deferred payments are not reported to the credit bureaus as missed.
- Payment of certain fees might continue despite payment deferrals.
The following are waived:
- Interac e-Transfer and stop payment fees between March 16 to July 5, 2020.
- Overdraft interest fees from April 6 to July 5, 2020.
- International transfer fees via Interac and Mastercard until July 31, 2020.
You do not need to apply for this financial relief.
To receive relief, you must apply on NBC’s website.
Financial Relief From Other Canadian Banks
If your bank isn’t listed above, that doesn’t mean your bank isn’t offering financial relief for COVID-19. Many banks have realized the financial stress surrounding COVID-19 and have implemented support.
Visit your bank’s website, chat online with a representative or call to find financial relief. Keep in mind that calling should be a last resort. This is because many banks have a high volume of calls at the moment.
Financial Relief For Businesses
Business owners are not forgotten during these difficult times. If you have a business loan, you may want financial relief too. Basic support is already provided to businesses, as mentioned above. However, most banks are offering support for businesses on a case-by-case basis. Research what your business’s bank is doing to obtain financial support.
Bank Branch Changes
Banks offering financial relief during coronavirus may still be open at this time, but are likely operating at reduced hours. If you can, avoid visiting your branch to abide by social distancing rules. Many banking features are available online or by phone. In fact, banks encourage customers to use online banking right now. Try these options before visiting a physical branch.
Scams
Unfortunately, scammers have begun to take advantage of the COVID-19 crisis. Possible scams can come in phone call, text and email communications. If it seems too good to be true, it probably is!
However, if you want to make sure it is a scam, you can note the person’s name, phone number and company. Then, call the company independently to verify the identity of one of their employees. If the employee doesn’t exist, it’s definitely a scammer.
Other Financial Support
Mortgage, credit card and loan payments are usually the largest expenses. For this reason, it’s advantageous to use the resources offered by the banks as a result of the COVID-19 pandemic.
However, if money is still tight, you may want to make use of other resources as well. Are the banks offering financial relief during coronavirus not doing enough to help you get by? We might be able to help. Talk through your financial issues with a trained specialist, and see other support through COVID-19 below.
