How will a new September 30 holiday affect Canada’s housing market and mortgage sector?

Today, numerous mortgage lenders and brokers all over Canada are working on new plans for clients whose mortgage deal closings will be affected by the new September 30 holiday.

In May, the federal government passed Bill C-5 and created the National Day for Truth and Reconciliation – a new statutory holiday aimed at honouring the memory of victims and survivors of residential schools.

That’s why Canada’s large banks and certain non-bank lenders will not work on that day, meaning all housing transactions previously scheduled for September 30 have to be rescheduled.

In addition to it, certain other services related to this sector (e.g. notaries) may be closed as well.

For instance, Equitable Bank will not be able to work as it depends on its big-bank partners.

Meanwhile, First National, Canada’s largest non-bank lender, will be open on that day as its operations are provincially regulated. The situation can change only if the provinces where they do business decide otherwise, noted Scott McKenzie.

“However, we are aware that banks and federal government offices will be closed on September 30, that’s why our team has worked proactively with our broker partners since we’ve received Royal Assent in early June to reschedule closings away from that date,” – he said, noting that both sides have been cooperating to make sure their clients will keep receiving the high quality service they deserve. “As always, we’ll do our best to provide high quality service to our mortgage broker partners and clients on this important day. ​”

At the same time, many brokers and big broker networks are rescheduling closings as close to the initial date as they can.

TD Bank has informed all agents that it will observe the new holiday.

“All mortgage closings scheduled for this day must be rescheduled to the business day before or after September 30, as in case of any other statutory holiday,” – the bank stated, promising to provide more information to help brokers with customer conversations and certain activities.