Ottawa – Canadians with mortgages from federally regulated financial institutions (FRFIs) benefitted from more than 8,000 mortgage relief measures between July 5, 2023, and June 30, 2024. These relief measures enabled mortgage holders to avoid more than $4,000,000 in penalties and fees they would have incurred when dealing with late or missed mortgage payments.
These results are included in a report published today by the Financial Consumer Agency of Canada (FCAC). FRFIs provided consumers with these relief measures in response to the requirements established by FCAC in its Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances.
The most common relief measures FRFIs implemented to support consumers were waiving penalties for lump-sum payments that were made to avoid negative amortization, and waiving interest charges on interest.
In early 2023, FCAC recognized that Canadians were facing a challenging economic environment that could lead to severe financial stress among some mortgage holders. In response, FCAC issued this regulatory guideline that sets out expectations for FRFIs to support consumers who are at risk of defaulting on their mortgage for their principal residence.
FCAC expects FRFIs to support consumers by:
- identifying early signs of severe financial stress and mortgage accounts at risk of default
- proactively contacting the holders of mortgage accounts at risk of default to allow them to make timely and informed decisions
- establishing criteria for offering appropriate relief measures, informed by the specific circumstances and financial needs of mortgage holders
Mortgage relief programs implemented in response to FCAC’s guideline have either enhanced or complemented FRFIs’ pre-existing hardship programs.
FCAC will continue to monitor industry compliance so that Canadians experiencing financial difficulties benefit from the mortgage relief options as set out under the guideline.