The Government of Canada has announced that changes to CDIC deposit protection originally slated for April 30, 2021 are deferred by one year and will now come into force on April 30, 2022.

The change provides CDIC members with operational reprieve so they can focus on client service delivery during these challenging times.

The deferral complements other measures (PDF, 279 KB) CDIC has recently undertaken to help support the Canadian financial industry as it navigates the ongoing global economic and market uncertainty. CDIC continues to dedicate itself to supporting the availability and efficacy of financial services to effectively meet the needs of Canadian households and businesses.

Changes to deposit insurance took effect on April 30^th, adding foreign currency deposits and term deposits of greater than five years to CDIC’s coverage framework. “These changes demonstrate that CDIC is keeping pace with how Canadians bank and save, so they have even greater assurance that their hard-earned money is protected at any of our members,” said Peter Routledge, CDIC’s President and CEO.

Here’s an overview

Foreign currency

Foreign currency deposits are protected up to a maximum of $100,000 (principal and interest combined) per depositor in each of the insured categories.

It’s important to note that foreign currency deposits do not receive separate coverage. In the event of failure, they would be combined with other deposits in the same deposit insurance category. To calculate coverage, they would be converted into, and be payable in, Canadian dollars, using the conversion rates published by the Bank of Canada on the date of failure.

And foreign currency deposits at foreign financial institutions are not covered by CDIC but may be covered by that country or region’s deposit insurer, so be sure to check with them.

Term deposits

Term deposits, including Guaranteed Investment Certificates (GICs) of more than five years are now eligible for CDIC protection up to a maximum of $100,000 (principal and interest combined) per depositor in each of the insured categories.

Similar to foreign currency deposits, keep in mind that, in the event of failure, term deposits of more than five years do not receive separate coverage but would be combined with other deposits within the same category.

Term deposits greater than five years and foreign currency held at a CDIC member institution will automatically be eligible for coverage, even if they were purchased before April 30, 2020. Coverage is free, automatic and fully backed by the Government of Canada.

These changes ensure that CDIC protects more of Canadians’ hard-earned savings.

For more information please visit our Coverage and Categories page or try our deposit insurance calculator to find out how your money is protected.

OTTAWA – April 30, 2020 – The Canada Deposit Insurance Corporation (CDIC) today ushered in changes to modernize and strengthen deposit protection, the first major update to the overall framework since 1995.

Changes include:

• Expanded coverage of eligible deposits held in foreign currencies;
• Extended coverage of eligible deposits with terms greater than 5 years;
• The elimination of coverage for travelers’ cheques (which are no longer issued by CDIC member institutions).

“These changes demonstrate that CDIC is keeping pace with how Canadians bank and save, so they have even greater assurance that their hard-earned money is protected at any of our members,” said Peter Routledge, CDIC’s President and CEO.

The updated coverage was announced in Budget 2019 following an extensive policy review process. With the expansion of coverage, nearly all personal deposit accounts in our members are fully protected by CDIC.

For more information about these changes, CDIC invites Canadians to visit our website and social media channels, try out our deposit calculator or view this video to find out how we protect your hard-earned savings.

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For further information:

Brad Evenson
Director, Communications and Public Affairs
Tel: 613.943.4395
E-mail: media@cdic.ca

OTTAWA – April 23, 2020 –CDIC has released an updated Information Bulletin (PDF, 408 KB), to help its member institutions better understand the requirements of the Deposit Insurance Information By-law (“DIIB”).

The revised bulletin provides enhanced guidance and a more streamlined approach to assist CDIC members to meet compliance requirements. The DIIB sets out measures to ensure CDIC members provide accurate information about CDIC deposit insurance.

The updated Information Bulletin also reflects changes to the deposit insurance framework, coming into effect on April 30, 2020.

For further questions or assistance on matters related to the Deposit Insurance Information By-law, please contact members@cdic.ca.

OTTAWA – April 20, 2020 – The results of a special examination by the Office of the Auditor General of Canada (OAG) show that the Canada Deposit Insurance Corporation has sound practices and systems in place to oversee the management of the Corporation.

The report affirms that CDIC has good practices for corporate governance, strategic planning, risk management and managing its operations. There were no significant deficiencies noted and CDIC has responded with management action plans to three OAG recommendations for improvement.

The special examination is conducted every ten years in accordance with the Financial Administration Act. The objective is to determine whether the systems and practices selected for examination offer reasonable assurance that CDIC is safeguarding and controlling its assets, managing resources economically and efficiently, and carrying out its operations effectively.

This special examination covered the period between January 1, 2019, and October 31, 2019.

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Further information:

Brad Evenson
Director, Communications and Public Affairs
Tel: 613.943.4395
E-mail: media@cdic.ca

OTTAWA – To allow its member institutions to focus resources on directly supporting the needs of their customers in this challenging economic and financial environment, Canada Deposit Insurance Corporation (CDIC) has announced the following measures:

• CDIC will not charge interest on premiums that are received after July 15, 2020 so long as these are received no later than December 15, 2020.
• Delay submission of the stratification section of the Return of Insured Deposits (RID)
• Offer acceptable delays on complying with Deposit Insurance Information By-law (DIIB), requirements in light of changes to CDIC deposit insurance coverage effective April 30, 2020
• Postpone testing for Data and System Requirements (DSR  2.0) compliance until July 15, 2020
• Waive the annual notification to multi-beneficiary trust depositors
• Step up our public awareness activities

“We anticipate that the above measures will offer member institutions some operational reprieve to aid in weathering the ongoing economic and market uncertainty and to focus resources on client service delivery,” said CDIC President and Chief Executive Officer Peter Routledge.

The full details of these measures are contained in a letter sent to CDIC members.

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For further information:

Brad Evenson
Director, Communications and
Public Affairs
Tel: 613.943.4395
E-mail: media@cdic.ca

OTTAWA – February 20, 2020 – CDIC published a new Certification and Testing Approach document on our website to help Member Institutions understand the process to be followed by CDIC this year when testing for compliance with our Data and Systems Requirements By-law (DSRB).

The by-law requires members to implement a method of identifying, capturing, organizing, and producing deposit liability data. The objective is to ensure that in the event of failure, the Member Institution has certain data readily available and organized properly to allow CDIC to undertake a resolution.

The new Certification and Testing Approach 2020 document contains information on timelines related to deposit data extraction, submission, testing and feedback to the Member Institutions.

To receive news and regular updates on issues affecting the financial community, please subscribe to our newsroom.

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For further information:

Brad Evenson
Director, Communications and Public Affairs
Tel: 613.943.4395
E-mail: media@cdic.ca

The Government of Canada has announced that changes to CDIC deposit protection originally slated for April 30, 2021 are deferred by one year and will now come into force on April 30, 2022. Content on this page has been updated to reflect the new coming into force date of April 30, 2022

OTTAWA – February 6, 2020 – With changes to deposit insurance coming into force on April 30, 2020 and April 30, 2022, CDIC is providing its members with a variety of online resources to support their implementation of the new framework.

Stakeholders can view and download key information from a special section on CDIC’s website. Implementing changes to the Deposit Insurance Framework features information about:

• Amendments to the CDIC Act and Co-owned and Trust Disclosure By-law (COTDB) (PDF, 1 MB)
• Amendments to the Deposit Insurance Information By-law (DIIB) and Premiums Approach (PDF, 455 KB)
• Data and System Requirements Overview (PDF, 498 KB)
• Communications and Stakeholder Outreach (PDF, 256 KB)

Member institutions can also download the new abbreviated brochure outlining the changes of the deposit insurance framework changes effective April 30, 2020. The brochure will be updated again to coincide with changes coming into force on April 30, 2022.

To receive news and regular updates on issues affecting the financial community, please subscribe to our newsroom.

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For further information:

Brad Evenson
Director, Communications and Public Affairs
Tel: 613.943.4395
E-mail: media@cdic.ca

The Government of Canada has announced that changes to CDIC deposit protection originally slated for April 30, 2021 are deferred by one year and will now come into force on April 30, 2022. Content on this page has been updated to reflect the new coming into force date of April 30, 2022.

OTTAWA – February 6, 2020 – Effective April 30, 2022 there will be a new framework for how deposit insurance is provided for deposits held “in trust” at Canada Deposit Insurance Corporation (CDIC) member institutions (MIs) including those placed through nominee brokers. This new framework sets out the requirements that nominee brokers must meet to ensure the deposits they hold for their clients (i.e. the beneficiaries) are protected.

To develop solutions for implementing the new framework, CDIC has partnered with industry in a Brokered Deposit Advisory Group (BDAG). The advisory group supports discussion among stakeholders affected by these rules and promotes the development of sound industry best practices that help ensure a strong and coordinated implementation of the deposit insurance rules.

Further details about the new requirements for nominee brokered deposits and advisory group are available in the Financial Community section of the CDIC website.

To receive news and regular updates on issues affecting the financial community, please subscribe to our newsroom.

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For further information:

Brad Evenson
Director, Communications and Public Affairs
Tel: 613.943.4395
E-mail: media@cdic.ca

At CDIC, we know Canadians have many different financial needs depending on their life stages. To help you find the information you need, we periodically share insights from our partners in the financial system. This article is courtesy of the Canada Mortgage and Housing Corporation (CMHC) by Sam Carnovale.

As tax season fast approaches, homebuyers are deciding how to manage their savings to address financial needs. According to CMHC’s 2019 Mortgage Consumer Survey, homebuyer behaviours in relation to savings, down payments and first time home ownership changed significantly compared to results from the 2018 survey.

Increasing number of first time homebuyers renting 10 + years before buying

The percentage of first-time buyers who rented for 10+ years before buying a home increased from 22% in 2018 to 31% in 2019. However, nearly 50% of buyers were first time homebuyers in 2019.

Three programs available that can assist with your first purchase

The Government of Canada offers a variety of incentives to support first time homebuyers and it is important you know what support is available to assist with homeownership. Here are three ways the Government of Canada can help make homeownership more affordable.

1. First-Time Home Buyer Incentive is a new program in which eligible borrowers can apply for a 5% or 10% shared equity mortgage with the Government of Canada.
2. First-time Home Buyers’ Amount is a tax credit that can provide up to $750 in federal tax relief.
3. Home Buyers’ Plan allows first-time homebuyers to withdraw up to $35,000 from their RRSP.

Where are Canadians getting their down payment?

According to survey respondents, equity from a previous home and savings outside of an RRSP are the main down payment sources.

RRSP’s can be a very effective way for first time homebuyers to financially prepare for homeownership. Did you know that the Government of Canada recently increased the Home Buyer’ Plan withdrawal limit to $35,000 so you can get more out of your RRSP?

The Canadian Deposit Insurance Corporation (CDIC) covers eligible deposits in an RRSP up to $100,000, separately from your other savings in the same member financial institution.

How much are Canadians putting down on their homes?

Homebuyers who put down less than a 20% down payment are required to purchase mortgage loan insurance. As such, the 20% threshold is an important benchmark when measuring home buying behaviours. Homebuyers were evenly divided between three down payment categories in the 2019 Mortgage Consumer Survey:

1. More than 20%
2. 20%
3. Less than 20%

The three main reasons for putting down less than 20% are:

1. Lack of funds (53%)
2. Desire to keep funds for other expenses (27%)
3. Wanting to be comfortable at their current debt level (14%)

The majority of buyers who put down less than 20% cited a lack of funds as the main reason. If you are a first-time homebuyer looking to reduce your monthly mortgage carrying costs, see if you could benefit from the recently announced First-Time Home Buyer Incentive.

DECREASE

in % of buyers saving funds for other expenses (27% in 2019 compared to 34% in 2018)

Down payments: Increasing number of Canadians putting down less

While Canadians are evenly split between the levels of down payments, 2019 saw an increase in the number of homebuyers putting down less than 20%. And for those who put down less than 20%, there was an increase of buyers who did so because they did not have enough saved for a larger down payment compared to 2018.

The percentage of buyers with a less than 20% down payment increased from 26% in 2018 to 33% in 2019. And the percentage of buyers who didn’t have enough saved for a larger down payment was 53% in 2019 compared to 49% in 2018.

While the three down payment categories were evenly divided, interestingly enough, there was a significant decrease in the percentage of buyers saving funds for other expenses in 2019 compared to 2018 (34% in 2018 to 27% i  2019).

Prospective buyers can use CMHC’s homebuying calculators to calculate mortgages, affordability, and debt. This will help them make sound decisions, to assess their finances, and to be well prepared for the important decision they are about to make.

For more information about the 2019 Mortgage Consumer Survey and the findings, visit cmhc.ca/2019MCS.

INCREASE

• Increase in % of buyers with a less than 20% down payment (33% in 2019 compared to 26% in 2018)
• Increase in % of buyers who didn’t have enough saved for a larger down payment (53% in 2019 vs. 49% in 2018)

Sam Carnovale has worked at CMHC for more than 25 years, gaining in depth experience in the lending industry. As a seasoned Director of Financial Institutions, he is passionate about exceeding his clients expectations and helping Canadians meet their housing needs. In addition, he is certified in Real Estate Finance (CRF) and in Risk Management (CRM). He is also actively involved in the MPC Foundation.

November marks Financial Literacy Month in Canada. During this time, Canadians are invited to strengthen their financial knowledge and join the conversation on social media using the hashtag #FLM2019.

Financial literacy is critical for the financial well-being of Canadians. In that spirit, CDIC has launched various online games to raise awareness about the importance of financial literacy for Canadians in all walks of life.

Equipped with CDIC information and relevant financial wellness content, our financial literacy contests are a series of fun and free games to challenge financial consumers to consider their financial wellness.

Our objective is to promote financial wellbeing and increase Canadians’ awareness of CDIC deposit protection, while rewarding their participation in an incentivized approach. Moreover, we have teamed up with our partner agencies, the Financial Consumer Agency of Canada (FCAC) and the Canada Mortgage and Housing Corporation (CMHC) to provide questions for each game.

CDIC is pleased to have launched these engaging games while forging fruitful partnerships with member institutions and the Canadian football community:

• CDIC’s Would You Rather? Financial Challenge
• CDIC Financial Literacy Game in partnership with the Canadian Football League (CFL)
• A number of games in partnership with member institutions

Would You Rather? Financial Challenge

The online game, running from November 6 to December 18, was created to help Canadians reinforce their financial knowledge. This year, the theme “Take charge of your finances” encourages consumers to make a budget, have a savings and debt reduction plan, and understand their financial rights and responsibilities. Consumers will answer questions that correspond with their own preferences, then find out where their choices stand with the rest of Canada. CDIC will be giving away up to $10,000 in travel vouchers to the winners.

Play Would You Rather? Financial Challenge

CDIC’s Financial Literacy game: A partnership with the CFL

CDIC has partnered with the Canadian Football League (CFL) in an online financial literacy game that promotes financial literacy. As the CFL playoffs happen during financial literacy month, CDIC jumped on the opportunity to create a partnership that would provide national amplification and increase our public awareness levels from coast to coast to coast. In addition to the game, CDIC is partnering with the CFL during playoff season. The CFL edition runs from November 6, and closes on November 25^th, the day after the Grey Cup. As for prizes, CDIC is giving away five pairs of 2020 season tickets.

CDIC Financial Literacy Game in partnership with the CFL

Financial Literacy Challenge in partnership with CDIC member institutions

We have adapted our previous game build, CDIC’s Rain or Shine Financial Challenge, to accommodate CDIC’s member institutions. As financial institutions hold the trust of depositors, we wanted to leverage their direct line of contact. Five member institutions are currently taking part in this project and have made the game available to their clients. Each game is co-branded with CDIC and includes questions from the member institution. The games run during November and December, with other member institution games launching in the new year.

Over the coming weeks, Canadians will have access to these games to use as fun and engaging educational tools on financial literacy and deposit protection. To learn more or to partner with CDIC, please contact Kristine Henry at khenry@cdic.ca.

Speaking Notes by Peter Routledge, President and CEO – International Association of Deposit Insurers conference – October 10, 2019