Mortgage Deferral Strategy
Deferring your mortgage is not an easy choice to make. The thought of pausing mortgage payments can feel like your finances are going in reverse. What does deferring your mortgage payments really mean? Does the interest stop accruing?
No.
Each lender has their own definition of what deferring a mortgage payment means. Most lenders adopt the following:
“The mortgage deferral offer is a pause on mortgage payments themselves, not a forgiveness of the overall mortgage obligation, which means that interest will continue to accumulate and be added to your debt. In some cases the interest will be compounded. There may also be options available to pause your mortgage credit protection insurance premiums.” – TD
As you can see, the interest will continue to accrue on your mortgage, and in some cases TD will be allowed to charge interest on the interest.
If you wish to actually pause your mortgage and keep your principle amount owing from expanding, you need to pay the interest portion of your monthly mortgage payment. This will stop the amount you owe from growing.
Your lender may not advertise an interest only option, but when speaking with them, ask them if they would consider an “interest only” payment. Most banks will gladly do an interest only deferral program.
If you are interested in deferring your mortgage and the options available to you, please speak with your mortgage provider. Below is a list of lender contacts.
LENDERS CONTACT
ATB 1-800-332-8383
B2B 1-800-263-8349
Bank of Montreal 1-877-895-3278
Bridgewater 1-866-243-4301
Chinook Financial 403-934-3358
CIBC 1-800-465-2422
CMLS Financial 1-888-995-2657
Connect First 403-520-8000
Equitable 1-866-407-0004
First Calgary Financial 403-736-4000
First National 1-888-488-0794
Haventree 1-855-727-0051
Home Trust 1-855-270-3630
HomeEquity Bank 1-866-331-2447
HSBC 1-888-310-4722
ICICI 1-888-424-2422
Manulife 1-800-268-6195
Marathon 1-855-503-6060
MCAP 1-866-809-5800
Merix 1-877-637-4911
National Bank 1-888-835-6281
Optimum 1-866-441-3775
RFA 1-877-416-7873
RMG 1-866-809-5800
Royal Bank 1-800-768-2511
Scotiabank 1-800-472-6842
Servus 1-877-378-8728
Street Capital 1-866-683-8090
TD 1-888-720-0075