Canadians are outraged over banks profiting from COVID-19 mortgage deferrals
People all across the country have been taking to social media to express their frustration with the mortgage deferral program that was meant to aid struggling homeowners. As details emerged about the program, it became clear that the relief was based on higher payments and interest in the future. To put simply, Canada’s big banks will be turning a profit on what many thought to be a goodwill gesture.
Great. Just fucking great. If you take a mortgage deferral, your bank will charge you interest on it. RBC, BMO, and Scotia Bank all admit to it. Global pandemic, people are out of work, and banks are profiting. What. A. Shock.https://t.co/9TZuy2IOr5— Life The Necropolis (@lifenecropolis) March 23, 2020
Anthony Grande, a small business owner, compared the deferrals to “vulture banking.” He told the Toronto Star that profiting off a program marketed as relief was “especially egregious and underhanded.” He is not alone either.
Banks self regulating the mortgage deferral is not the answer.— Mike Olson (@Mrolson74) March 20, 2020
Age of mortgage, income, credit checks are all unnecessary at this point.
Either the bank is providing relief or not. If not, the government will have to step in. #banks #COVID19
Many Canadians echo this sentiment about the deferral program and have called on the federal government to intervene.
Emergency legislation, please. Otherwise the banks will run riot.https://t.co/8QnTlRUs9e— Scott Terrio (@ScottTerrioHMA) March 22, 2020
Turns out that the banks in Canada are going to charge interest on the interest if you ask for #coronavirus help. It’s no help at all – they’re going to profit from corona virus off the backs of workers who lost jobs. Govt needs to stop predatory conduct. https://t.co/EASRUSFenY— Christine Duhaime (@cduhaime) March 23, 2020
@JustinTrudeau should stop this. This isn’t right. Banks are supposed to help the public, not pushing them deep into more debt. Profiting from this situation is inhuman!— The Immigrant (@hshariati) March 23, 2020
There is widespread outrage that banks – that have made tens of billions of profits in recent years – would choose to capitalize on a pandemic to increase their bottom line. Especially considering that these deferrals were contingent on the federal government agreeing to purchase $50 billion of insured mortgage pools.