Mortgage Payment Deferral Information
All major banks have stated they are granting mortgage deferrals on a case-by-case basis.
Highlights, and What To Expect:
- This is not an interest free program. Interest will accrue on your principal balance through the deferral period.
- Each lender has their own policies on how people will qualify for a deferral. Some may require direct proof of how the Covid-19 pandemic has affected you, some may not. There is no consistent policy to refer to. To find out if you qualify, you must call your lender directly.
- Banks are experiencing extremely high call volumes. Expect a 2-4 hour wait on hold to speak with your bank.
- There is no consistent policy on how the deferral is paid back. Some lenders will simply add the accrued interest to the balance of the mortgage and recalculate your payment after your six month period, to keep your amortization the same. Other lenders will add the interest to your balance and not adjust your payment, effectively extending out your amortization period due to the higher balance.
Before considering to defer your mortgage, understand that this is not an interest free program. The bank will collect all interest owed.
If you are having trouble with deferring your mortgage, consider refinancing to get liquid during this time period.