In the last 48 hours, many banks and mortgage lenders have announced they will work to support and assist individuals whose income has been impacted by the COVID-19 outbreak. This is tremendously comforting to those individuals who will find themselves in financial hardship as a result of income reduction or cessation due to quarantine or business challenges. It is important to note however, that these supports are provided by the lenders who offer them on a case-by-case basis, and individual borrowers’ circumstances will determine their respective eligibility.
Some Canadians have incorrectly interpreted media reporting of these programs as providing a payment amnesty or loan forgiveness for a time. Lenders are reporting an inundation of customer calls asking for assistance who have not been directly financially impacted by crisis.
These programs are not debt forgiveness, but solutions to defer payment obligations for a time. Borrowers are still responsible to meet their obligations where they can.
