COVID-19: Managing financial health in challenging times

If you’re receiving benefits by Government of Canada cheque, you may cash your cheque for free. You can cash a cheque that is $1,500 or less, at any bank even if you’re not a customer. However, the Government has temporarily increased the limit to $2,000 for emergency benefits-related cheques to individuals. You must simply show acceptable identification to the teller such as a passport or driver’s licence.

Learn more about cashing a Government of Canada cheque.

You can also deposit your cheque in person at any bank branch, using an ATM or by mobile device. However, the bank will put a hold on the money. Depending on the amount, you may have to wait between 5 and 8 business days before accessing the money.

Learn more about depositing a cheque with your mobile device.

You may have trouble paying for your ongoing expenses or foresee challenges in keeping up with your regular payments. In that case, visit your financial institution’s website. Be proactive and look at the options that your financial institution is proposing.

Banks in Canada are closely monitoring developments related to COVID-19. If you’re facing short-term financial issues, your bank might be able to help. Contact your financial advisor or a representative at your financial institution to determine if measures are available to you. They look at situations on a case-by-case basis. 

See the latest news on how banks in Canada are taking action.

During the COVID-19 pandemic, many financial institutions allow payment deferral on credit products, including mortgages and credit cards. If you have problems making your mortgage payments due to COVID-19, you might be eligible for a mortgage deferral. Financial institutions approve payment deferrals on a case-by-case basis.

Find out more about mortgage deferrals.

If you expect to continue to experience financial hardship once your mortgage deferral period ends, consider your options now.

Read your mortgage contract and speak to your financial institution about the options available to you. You may be eligible for one, or a combination of the options offered by your financial institution. Keep in mind that if you make changes to your mortgage contract, you may have to pay fees.

Find out more about mortgage relief options. 

Deferring payments on a mortgage, credit card or any other credit product should not negatively affect your credit. Canada’s 2 credit bureaus, Equifax and TransUnion confirmed that payment deferrals won’t affect your credit rating. 

Review your credit reports. Make sure the deferrals approved by your financial institution have been properly reported to the credit bureaus. It could take up to one month for information to appear on your credit reports. 

You can order your credit report with Equifax and TransUnion, free of charge at any time.

Learn how to order your credit report and score. 

When you review your Equifax credit report, look for one of the following indicators next to your deferred payments:

• deferred payment plan
• affected by a natural or declared disaster 

The payment status should be "Paid as agreed and up to date". You should see the amount of $0 or "n/a" in the "Payment Amount and Delay" field.

For TransUnion, look for the letter "D" in the "Terms" field related to the deferred payment.

For more information, visit the credit bureaus’ COVID-19-related web pages:

• Equifax
• TransUnion

Learn how to fix an error on your credit report. 

A HELOC may be another way to access emergency savings, under certain circumstances.

Find out more about HELOCs.

If you are experiencing financial hardship as a result of COVID-19, your bank may be able to temporarily reduce the interest rate of your credit card.

Terms and interest rates may vary depending on the financial institution. Contact your financial institution by using its online portal, telephone banking service or by booking an appointment to determine if you are eligible. Otherwise, your monthly payments and interest rates will remain the same.

While Canadians still use cash for purchases, its use has decreased significantly due to COVID-19. If you’re using your debit card more frequently to avoid cash transactions, review your monthly transaction plan. If you go over the number of transactions in your monthly plan, you may have to pay fees.

Several payment card network operators have increased their per-transaction limits for contactless credit transactions during the pandemic. Contact your credit card issuer to find out if your limit has changed.

Debit and credit card transactions can be done using the:

• magnetic swipe and your pin
• chip and your pin
• secured TAP payment

If the pandemic affected you and you need assistance, you may get a refund on certain bank charges.

These can include fees for:

• insufficient funds (NSF)
• stop payments
• Interac e-transfers
• monthly transaction plans

Contact your financial institution for more details.

Use the Account Comparison Tool to find the account that best suits your needs.

During this uncertain period, consider all your options before borrowing additional money. Research shows those who often use credit to pay for daily expenses have lower levels of financial well-being.

If you must borrow money, make sure you understand the cost of credit products before you make a decision. You should also only borrow the amount you need.

Certain credit products are more expensive than others due to their high interest rates and fees. For example, a payday loan should be your absolute last resort, as they often carry very high fees.

Make sure you compare all borrowing options and their fees, interest rates and repayment terms before choosing a credit product. Otherwise, contracting new expensive credit now could create more financial problems for you in the future.

Learn about what to consider before borrowing money.

If you have trouble making ends meet, seek advice from reputable sources to explore your financial options. Contact a financial professional, such as a licensed financial advisor or an accredited credit counsellor to discuss a plan. If you choose a financial advisor, make sure they are licensed.

Find out what you should know before choosing a financial advisor.

Be cautious when searching for the right professional who can help you. Some companies offering to help to pay off debt or repair credit are misleading consumers.

Find out what you should know before getting help from a credit counsellor.

Having a budget is key, especially when an emergency occurs. To manage your budget, you must identify your income and expenses. It’s also important to identify your needs versus your wants during a specific period.

The Budget Planner is an interactive tool that helps you determine if you have the funds to meet your ongoing financial commitments. It provides tips, suggestions, guidelines and alerts. It can also help you find out where you could cut expenses.

Use the Budget Planner to create and manage your budget.

An emergency fund is money you set aside to pay for unexpected expenses. In general, it’s recommended that you save the equivalent of 3 to 6 months of your regular expenses.

If you don’t have an emergency fund, try putting some money aside right now if you can afford it. Depending on how the situation evolves, you may need to rely on an emergency fund sooner than expected.

Learn how to set up and manage an emergency fund.

If you’re facing financial hardship and can’t afford an emergency fund, contact your financial institution. They could recommend specific products or services to help you get through these difficult times. These can include a HELOC, a debt management plan or accessing funds in your registered retirement savings plan (RRSP).

Your financial institution might have to close branches temporarily. Online, mobile, ATM or telephone banking may become necessary for making financial transactions. Make sure you have your login information and passwords or your financial institution's phone number handy.

Learn more about online banking.

If you usually go in branch to pay your bills, consider setting up pre-authorized debits instead. Pre-authorized debits are automatic and convenient when you want to make payments from your account on a regular basis.

Learn how to set up pre-authorized debits.

• never click on links or attachments in unsolicited or suspicious emails
• never give out your personal or financial information by email or text
• note that financial institutions will never ask you to provide personal, login or account information by text or email
• when banking online, enter your financial institution’s website address in your browser yourself
• beware of questionable offers related to cures, if it seems too good to be true, it probably is
• if you have concerns about your insurance coverage, contact your insurance company directly
• if you need information on COVID-19, refer to a trusted source such as the Government of Canada’s COVID-19 page

Find out how to protect yourself from malware.

If you didn’t initiate contact with a person or a business, you don’t know who you are dealing with.

The Canadian Anti-Fraud Centre has more information on scams and tips to help protect yourself from fraud.

Find out about the current reported scams related to COVID-19.

Learn how to protect yourself when banking online.

Know what to do if you’re a victim of fraud.