Canada's federal banking regulator is phasing out requirements around mortgage deferrals for homeowners hard-hit financially by the COVID-19 pandemic. For banks, the rules mean they won't be subject to higher capital requirements because the deferred mortgages won't be considered past-due. The majority of the mortgage deferrals banks faced were approved in March and April as the pandemic took an economic toll on the country with non-essential businesses shuttered and millions out of work or watching their incomes crash. As of July 30, there were roughly $170 billion in outstanding residential mortgage deferrals for largest six banks, with the majority set to mature over the next two months. Come October, the special rules implemented as a result of the pandemic will be removed.

Source: CBC News August 31, 2020 15:33 UTC