Requesting financial relief for your mortgage

Submit a mortgage payment deferral request for 6 months.

Eligibility for Mortgage Payment Deferrals 

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. 

Also note that:

  • Default insured mortgages that are overdue for 90 days or more and uninsured mortgages that are overdue for 120 days or more are not eligible for mortgage payment deferrals.
  • Both your principal residence and up to 3 non-principal residence(s) may be eligible for mortgage payment deferrals.
  • No credit application is required, but please make sure all co-borrowers are present when you contact us.

For the full details, here are the Mortgage Payment Deferral Request Terms and Conditions

How mortgage payment deferrals work

Mortgage payment deferrals

Mortgage payment deferrals are available for customers experiencing hardship. 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.

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. The option to defer your insurance premium payments may be available to you if you are experiencing financial hardship—you can call 1-855-753-4272 Monday – Friday 8am-8pm ET if you would like to discuss this option. If you’re unsure if you have Scotia Mortgage Protection, please sign into Scotia OnLine 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. 

How does the mortgage payment deferral process work?

First, complete your application by September 30, 2020.

For the application, you’ll need the following information:

  • Mortgage number
  • Last mortgage payment amount
  • Property address

Second, we’ll process your application.

Once we receive your application, 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. 


Mortgage payment deferral FAQs 

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 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.

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.

A mortgage payment deferral is available for customers experiencing hardship on a case-by-case basis. Applications must be received by Scotiabank by September 30, 2020.

To discuss a mortgage payment deferral, you can speak to a branch advisor or call our Contact Centre. You can also apply online by clicking the "Submit a request" button above.

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 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. 

If you’re experiencing financial hardship you can apply for a mortgage payment deferral online.

For the application, you’ll need basic personal and mortgage information, such as:

  • Mortgage number
  • Last mortgage payment amount
  • Property address

If you’d like to discuss the option of deferring your Scotia Mortgage Protection insurance premium payments you can call 1-855-753-4272 Monday – Friday 8am-8pm ET.

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 are 30 days or more overdue when you request a mortgage payment deferral, the deferral period will apply 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 is not eligible for a deferral even if you submit a deferral request and receive an acknowledgment from us.

Requesting financial relief for your mortgage