You're eligible for a mortgage payment deferral if:
- You, or any member of your family, has become unemployed or experiences a material reduction in income due to COVID-19.
- You have an insured or uninsured mortgage with Scotiabank.
Note: No credit check will be required and this will not impact your credit score.
What is a mortgage payment deferral?
Mortgage payment deferrals are available for customers experiencing financial hardship due to COVID-19. A mortgage payment deferral means that you will not be required to make regular payments on your mortgage (principal, interest, and property taxes, if applicable) for 6 months.
During the time you defer your mortgage payments, interest will continue to accrue and will be added to your mortgage account balance at the end of the deferral period. This means your payments will be slightly higher after the deferral period ends. You will pay more in interest over the life of your mortgage, but a deferral will also help with short-term cash flow.
Both your principal residence and up to 3 non-principal residence(s) may be eligible for mortgage payment deferrals.
Mortgages with multiple borrowers or guarantors
If there are co-borrowers or guarantors for your mortgage, please make sure you have their consent to submit a payment deferral request.
Mortgages that include property taxes
If your mortgage payment includes an amount for property taxes and we make a tax payment during the deferral period, this could result in a debit balance in your tax account which will be subject to interest at your mortgage interest rate. Your property tax payment will be adjusted to cover this shortfall after your deferral period.
Customers with mortgage creditor insurance
Please note that if you have creditor insurance on your mortgage, premium payments will still be collected during the deferral period in order to maintain your insurance coverage. If you’re unsure if you have mortgage creditor insurance, please sign into Scotia OnLine to find details of your insurance coverage.
For the full details, here are the Mortgage Payment Deferral Request Terms and Conditions.
How do I request a mortgage payment deferral?
First, submit a payment deferral request.
For the request, you’ll need basic personal and mortgage information, such as:
- Mortgage number
- Last mortgage payment amount
- Property address
Second, we’ll process your request.
Once we receive your request, we’ll notify you by email. If you're eligible, we’ll email you again within 5 to 7 business days, and your deferral period will start with the payment due in 2 or more business days after your submission.
Lastly, we’ll update your payments.
At the end of the deferral period, we’ll send you a notice with your new mortgage payment and updated cost of borrowing.
You can contact us if you want to cancel your deferral before your mortgage payment deferral period ends, with a minimum of two weeks’ notice.
How will a mortgage deferral affect my cashflow?
Because interest continues to accrue over the deferral period, you will pay more interest over the life of your mortgage when you defer your payments. However, a deferral will help with your short-term cashflow during the financial hardship due to COVID-19.
In the following example, deferring mortgage payments for 6 months gives you an additional cashflow of $8,274 (6 payments of $1,379) over that period.
How would a mortgage deferral change my payments?
In this example, deferring mortgage payments for 6 months results in total of $2,981 of additional interest cost added to the balance of the mortgage at the end of the deferral period. This is based on a $200,000 mortgage balance with a 3% fixed interest rate, deferral period of 6 months, and a remaining amortization of 15 years. The resulting new payment after the deferral period is 4.3% higher than it was before the deferral. The deferral results in cashflow savings of $8,274 for the customer.
|Interest rate 3%||Start of Deferral Period||End of Deferral Period|
|Mortgage Balance ||$200,000||$202,981 (+ $2,981.40 Interest added)|
|Payment Amount (monthly)||$1,379||$1,438 (+ $59)|
|Remaining Amortization||15 years 0 months||14 years 6 months|
|Total value of 6 payments deferred||$8,274|
These calculations are provided for illustration only, and are not intended to provide financial advice. The costs associated with deferring your mortgage payment will vary with the characteristics of your mortgage. The calculations assume a constant interest rate for the entire amortization period but actual interest rates will vary over the amortization period.
If you do apply for a mortgage payment deferral and you’re eligible, we’ll send you a notice with your new mortgage payment and updated cost of borrowing at the end of the deferral period.
If you need us, we’re here.
For more information on other forms of financial relief, please visit our COVID-19 FAQs.