Are you a Scotiabank customer with access to online or mobile banking?

Are you a Scotiabank customer with access to online or mobile banking?

Financial relief for your mortgage

Update on COVID-19 support :

Payment deferral requests for mortgages are no longer available

Mortgage Terms
and Conditions

If you have submitted a deferral request on or before September 30, 2020, here are the Mortgage Payment Deferral Request Terms and Conditions for your reference. 

How mortgage payment deferrals work

Note: Payment deferral requests for mortgages are no longer available.

Mortgage payment deferrals

Mortgage payment deferrals were available for customers experiencing hardship. If you obtained a  mortgage payment deferral by September 30, 2020, this means that you will not be required to make regular payments on your mortgage (principal, interest, and property taxes, if applicable) for 6 months.

Interest

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.

Insurance

Please note that if you have Scotia Mortgage Protection insurance on your mortgage, premium payments will still be collected during the deferral period in order to maintain your coverage. If you’re unsure if you have Scotia Mortgage Protection, please sign into Scotia OnLine or call 1-855-753-4272 Monday – Friday 8 am – 8 pm EST to find details of your insurance coverage. 

Property taxes

If your mortgage payment includes an amount for property tax that Scotiabank pays on your behalf, we will continue to make the property tax payment during the deferral period. 

If there isn't enough money in your property tax account to cover the amount of that tax payment, we will charge interest on the amount of that shortfall at your mortgage interest rate.  The property tax portion of your monthly mortgage payment will be increased as part of the next tax payment adjustment process after the end of the deferral period so that the shortfall can be repaid.

If you’re currently paying your property taxes directly to your municipality, you will need to continue your payments with them during the deferral period as they become due.

Mortgage payment deferral FAQs 

Requests for mortgage payment deferrals had to be received by Scotiabank by September 30, 2020.

Should you have any questions regarding your mortgage, please contact us at 1-888-282-2620 Monday – Friday, 8:00 am – 9:00 pm EST, Saturday 9:00 am – 7:00 pm EST and a representative will be happy to assist you. 

You will receive an updated cost of borrowing letter after your deferral end date.

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.

Deferring mortgage payments for 6 months gives you an additional cashflow of $8,274 (6 payments of $1,379) over that period.

Interest rate 3%Start of Deferral PeriodEnd 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 months14 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 were approved for a mortgage payment deferral, we’ll send you a notice with your new mortgage payment and updated cost of borrowing at the end of the deferral period.

Deferred payments as part of Scotiabank’s COVID-19 relief measures will not be reported to the credit bureaus as missed payments so they will not impact your credit score as a traditional missed payment might. However, your credit score is based on many factors, including the balance owing on your Scotiabank product, and is unique to you.

If you have any questions about your credit score or how it is calculated,  you can visit TransUnion at  www.transunion.ca or Equifax Canada at www.equifax.ca.

No, they are different. A mortgage payment deferral means that payments are skipped for up to 6 months, during which interest is accrued to the outstanding balance of the mortgage. The amount is added to the principal balance and incorporated into the monthly payment when mortgage payments resume at the end of the deferral period. Mortgage forgiveness by comparison means that a lender cancels or forgives part of the debt. Scotiabank is extending mortgage payment deferrals, not mortgage forgiveness.

Requests for mortgage payment deferrals had to be received by Scotiabank by September 30, 2020.

Should you have any questions regarding your mortgage, please contact us at 1-888-282-2620 Monday – Friday, 8:00 am – 9:00 pm EST, Saturday 9:00 am – 7:00 pm EST and a representative will be happy to assist you. 

Yes, you can renew your mortgage during your deferral period.  We will automatically apply the time remaining in your 6 month deferral period to the renewal term.  Interest will accrue at your mortgage rate until the renewal date and then at the interest rate for your renewal term for the time remaining.  Accrued interest will be added to your mortgage balance at the end of the deferral period and your payments will be adjusted.  You can contact us if you want to cancel your deferral before your mortgage deferral period ends, with a minimum of two weeks’ notice.

If your mortgage payments were 30 days or more overdue when you requested a mortgage payment deferral, the deferral period applied starting with the first overdue payment and will end 6 months from that date.  This means that the overdue payments will no longer be categorized as overdue payments that impact your credit score. 

Note that if your mortgage payments are 90 days or more overdue for a default insured mortgage and 120 days or more overdue for an uninsured mortgage, that mortgage was not eligible for a deferral even if you submited a deferral request and received an acknowledgment from us.

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