Mortgage Payment Deferral Request - COVID-19 Impact

Terms and Conditions

By submitting a request to defer your regular mortgage payments, you agree to the following terms and conditions:

  1. In these terms and conditions, “Scotiabank” means Scotia Mortgage Corporation and/or The Bank of Nova Scotia, as appropriate and includes any of our subsidiaries or affiliates, and ‘you’ and ‘your’ refer to all those who are borrowers and guarantors under the mortgage loan with Scotiabank for which you are submitting a payment deferral request (the “Mortgage”).  If you have a Scotia Total Equity® Plan (STEP), “Mortgage” includes all mortgage loans under your STEP and this request applies to each such mortgage loan unless you advise us otherwise.  

  2. You represent and warrant that all information provided to Scotiabank in connection with your mortgage deferral request is correct and true. 

  3. You have requested to defer your regular mortgage payment (consisting of principal, interest and property taxes, if applicable) due and payable under your Mortgage. Mortgage deferral requests must be received by Scotiabank by September 30, 2020 to be eligible for consideration. To be eligible for a mortgage payment deferral, your Mortgage cannot be in arrears for 90 days or more (if it is default insured) or 120 days or more (if it is not default insured).  If you are in this situation and you submit a payment deferral request, it will not be processed even if you receive an automatic acknowledgment from us that your request has been received and/or processed.  If you submit a mortgage deferral request to us multiple times, we will process the deferral based on your first request only.

  4. If your request is approved, your regular mortgage payment will be deferred starting with your next regular mortgage payment, scheduled two or more business days from today, and the deferral will continue for 6 months or until you repay your mortgage in full if it comes first (the “Deferral Period”).  If your Mortgage is 30 days or more in arrears when you submit your deferral request, the Deferral Period will start with the due date for your first overdue payment and will end 6 months from that date unless you repay your mortgage in full before then.  If your mortgage is renewed during the Deferral Period, the remainder of the Deferral Period will apply to your renewal term.  Your mortgage payments will re-start with the next scheduled payment following the end of the Deferral Period.  You may contact us if you want to cancel your mortgage payment deferral and re-start your payments before the end of the Deferral Period, with a minimum of two weeks’ notice. 

  5. You acknowledge that creditor insurance premiums related to the Mortgage, if applicable, cannot be deferred and will continue to be charged and collected during the Deferral Period.  Your creditor insurance coverage will continue with the same coverages and amounts as provided in your Certificate and Schedule of Insurance during the Deferral Period.  Please see your Certificate of Insurance for full details about your creditor insurance coverage.

  6. During the Deferral Period, interest will continue to accrue at your mortgage interest rate or, if your Mortgage is renewed during the Deferral Period, at your mortgage interest rate until the renewal date and then at the interest rate for your renewal term for the remainder of the Deferral Period.  Accrued interest will be added to your Mortgage account balance at the end of the Deferral Period or when you cancel your mortgage payment deferral. This will result in an increase in the outstanding principal balance of your Mortgage and you will pay more interest over the life of your mortgage.  At the end of your Deferral Period, you must resume making regular mortgage payments as they become due.  Your regular mortgage payments will be adjusted to reflect the new principal balance of your Mortgage and will be higher in order to maintain your remaining amortization period.  We will send you a notice at the end of the Deferral Period setting out your updated regular mortgage payment and your updated cost of borrowing information. You can find an example of how your mortgage payments would change assuming you complete the Deferral Period here.

  7. If your mortgage payment includes an amount for property taxes, the property taxes will continue to be paid during the Deferral Period if they become due.  If this results in a shortfall in your tax account, you will be charged interest at the interest rate applicable to your Mortgage on the amount of that shortfall. Following the Deferral Period, the property tax component of your mortgage payment will be adjusted to collect the amount of property taxes deferred and any shortfalls over 24 months from the end of the Deferral Period.  You may contact us at the end of the Deferral Period if you wish to increase the property tax component of your payment to reduce the time period for payment of deferred property taxes and any shortfall or to pay the deferred property taxes as a lump sum.  If you are paying property taxes directly to your municipality, you must continue to pay them as they become due during the Deferral Period. 

  8. By submitting your deferral request, you certify that: 
    (i)    There are no mortgages, encumbrances, executions or other liens registered on title to the property subject to the Mortgage since the registration of the Mortgage other than those in favour of Scotiabank; and 
    (ii)    All borrowers and guarantors (if any) under the Mortgage have consented to this mortgage payment deferral.

  9. Except as set out in these terms and conditions, all provisions of your Mortgage (including those in your personal credit agreement, charge and any renewals), continue to apply. 

  10. Applicable in the province of Quebec only. The parties have requested that this Agreement, as well as all related documents, be drawn up in English. Les parties ont exigé que le present contrat ainsi que tous   les documents qui s'y rattachent soient redigés en anglais.