With everything that we hear, it can be very confusing to understand the specifics of the various aid programs offered during this pandemic crisis. The answer to this question is no – the government will not make your mortgage payments.

What are "deferral of mortgage payments" or "deferred payments" then?

Simply put, every payment you defer will incur accrued interest, which means that the amount of interest you would have normally paid will be added to the balance of your mortgage. Your monthly payment won’t increase, but you will find yourself with more payments than originally planned.

For example, let’s say that you have a $200,000 mortgage loan that started in March 2018 with a rate of 3.15%, amortized over 25 years. Your monthly payment is $961.95, and you have done 24 payments so far (monthly instalments x 2 years = 24 payments). If you ask for a deferral of payment on your 25th instalment, you would incur $493.18 in interest fees, which would be added to your mortgage balance.

Your lender may require several conditions, such as:

• An up-to-date mortgage, without late payments
• An acceptable credit rating that meets their eligibility criteria
• The amount of interest added to your mortgage balance cannot exceed the initial loan amount.

***Please note that this type of program should not negatively impact your credit file. However, computer systems might react differently - even if your lender does not consider you as being in default of payment, their system might negatively flag you to credit companies such as Equifax and Trans Union. If this is the case, you will need to take steps to correct the erroneous entry on your credit report. Request a printed copy of the deferral from your lender, as this will help you with the process. We suggest waiting 45-60 days after the deferral program has started before attempting to rectify your credit record. To begin this process, we recommend that you request a copy of your credit report with Equifax and Trans Union, in order to check if there really is a late payment on your report.

In summary, each lender will have their own criteria regarding the management of payment deferrals. What you must keep in mind is that this is not a gift from the Gods, but rather a temporary measure to provide you some respite.

To find out how your lender can help you, follow their instructions and take note of the following:

• If making a request by telephone, all borrowers must be present
• Wait times on the telephone can be anywhere from 4 to 5 hours
• Processing time by email may take 2 to 3 business days.
• Unfortunately, we cannot make the request for you.

Desjardins

Here is a quote from their press release on March 16, 2020

« Personal members and clients who are having trouble repaying their loans can reach out to Desjardins to discuss their options. The financial cooperative will review each request on a case by case basis and suggest solutions that could go as far as giving members and clients payment relief for all of their financing products--an option that wouldn't have any negative impact on their credit rating.»

« For any member or client who wishes to learn more about the relief measures : 1-800-CAISSES»

Scotia Bank

Here is a quote from their press release on March 17, 2020

« This support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.

Individual Canadians or business owners facing hardship are encouraged to contact their bank directly to discuss options that could be available to them.»

« Please make sure that all borrowers on the account are available if you call in to talk to a live agent. »

Customer Service Phone number: 1-800-4-SCOTIA.

TD Bank

Here is a quote from their press release on March 17, 2020

« This support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.

Individual Canadians or business owners facing hardship are encouraged to contact their bank directly to discuss options that could be available to them.»

• Visit our TD Website at www.td.com/covid19 to submit an online mortgage payment deferral request via EasyWeb online banking. Customers will receive an email response notifying them of the outcome of their application. This is the most convenient option to request a TD Mortgage Payment Deferral
• Reach out to us by phone at 1-888-720-0075.

National Bank

Here is a quote from their press release on March 17, 2020

« This support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.

Individual Canadians or business owners facing hardship are encouraged to contact their bank directly to discuss options that could be available to them.»

« To contact us:

Send us a secure message: sign in to your online bank, click Help and contacts in the left menu, and click Send message.. »

First National

Here is a quote from their press release on March 18, 2020

« Our financial relief program is customized to each individual’s circumstances and could include deferral of payments on mortgages for up to six months. If you have any questions, you can reach us at 1.866.557.5509 or by email at accounts@firstnational.ca. »

You can also click on the "Mortgage payment deferral" tab in your My Mortgage environment or by clicking here.

MCAP

Their notification published on their website

"Given recent global events, MCAP understands that these may be difficult times for its homeowners. In order to provide some assistance, MCAP wishes to highlight that under the terms of your mortgage, you may skip a payment or hold a payment at any time subject to certain conditions. Under the terms of MCAP’s Skip a Payment* Program, MCAP homeowners may skip a payment at any time. For the Hold a Payment* Program, a payment may be deferred for a specified period of time. Should you elect to skip or hold a payment, MCAP will waive any applicable fees and this will not impact your credit rating." 

The foregoing is applicable to any MCAP and RMG branded mortgages.

Si vous avez des questions ou souhaitez en savoir plus, veuillez cliquer ici. » ou écrivez-nous à cap@paradigmquest.com

Manuvie

Here is a quote from a communication sent by email on March 18, 2020

« If you have a mortgage or loan with us, we have options to help you manage through this difficult time. To find out more, call us at 1-877-765-2265 or apply with the Coronavirus financial relief forms at  https://www.manulifebank.ca/support/financial-relief.html.»

Home Trust

A quote from the notification published on their website

« We are committed to work with our customers on an individual basis to support you as you manage through these extraordinary times. If you have been directly impacted by COVID-19 and need to better understand your options with Home, please reach out to us at homehelps@hometrust.ca or call us at 1-855-270-3630 or 416-777-5820.»

Equitable Bank

A quote from the notification published on their website

“At Equitable Bank, we are standing alongside Canada's six largest banks to help provide financial relief to Canadians impacted financially by COVID-19. We are committed to working with personal and small business banking customers on a case-by-case basis to provide flexible solutions that help them manage through challenges such as pay disruption, childcare disruption due to school closures, or challenges resulting from the COVID-19 virus itself. This support will include up to a six-month payment deferral for mortgages.

Individuals or business owners facing hardship are encouraged to contact us directly to discuss options that may be available. If you are concerned about your financial situation, please contact Mortgage Services by email at customerservice@eqbank.ca.”

Merix/Lendewise/selection

You are invited to contact 1-877-637-4911, we will manage every situation case-by-case

Industrial Alliance

They have a deferred payment plan that allows you to delay payments. The situation of clients is analyzed on a case-by-case basis and will be assessed from month to month.

The request can be made in writing to prethypo@ia.ca, describing their current situation. The processing time is 3 to 4 working days.

Customers can also contact the customer service team at 1-800-463-4396. Given the current situation, waiting times by phone are very important.