Mortgage Payment Deferral is a phenomenon in which you and your creditor agree upon deferring your Mortgage Payments for a temporary period of time. This can happen during the time when you are facing financial hardship or unemployment.
Once situation gets back to normal, i.e. deferral period is over, your mortgage payments go back to normal too and the deferred payments with interest are repaid to the creditor.
Is Mortgage payment deferral really helpful?
Yes, Mortgage Payment Deferral is really helpful when you are looking for Financial Relief in times of distress. Once you are able to resume your mortgage payments, things go back to normal as it was before the deferral period.
Having said that, the mortgage payments deferral does not mean that amount owed on your mortgage gets canceled or erased. At the end of the agreement, you will have to resume payment according to your regular payment schedule and also repay the deferred payments with interest.
Can I defer my Mortgage Payment during Covid-19 outbreak?
Yes, you can defer your mortgage payment under the COVID-19 Mortgage Payment Deferral program and you can apply for it at any time during this outbreak. As per the Government of Canada guideline, if you are experiencing financial stress then you are eligible for a mortgage payment deferral up to 6 months.
Will Mortgage Payment Deferral impact my Credit Score?
No, deferred payments, as part of COVID-19 relief measures will not impact your credit score as a traditional missed payment might.