Since the pandemic began, Canadian financial institutions have allowed close to 800,000 households to delay payments on mortgages. They have also allowed deferrals on lines of credit and credit cards. This welcome flexibility has kept debt payments down for many households. But the six-month payment deferral period is ending for most borrowers, and the next few months will be crucial.
To this point, the resumption of payments has been going quite well. Of the mortgages whose deferrals have expired, the vast majority have returned to regular payments. Only a few have received a second deferral, and even fewer have become delinquent. Obviously, this is an issue we will continue to watch closely.