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COVID-19 : How does a mortgage payment deferral work?

This support measure allows you to postpone your payments (principal and interest) to give you a financial break. You can apply online for a period of up to 3 months.

Since you don’t make mortgage payments during the deferral period, your loan balance is paid more slowly than expected, which will result in additional interest charges. Additionally, the balance of your loan will be higher than expected at the end of your term.

In other words, if you choose to defer your mortgage payments:

  • The deferral applies to the principal and interest only. You must continue paying the other costs included in your regular payments, municipal and school taxes, and life, critical illness and disability insurance, if applicable. There may be a delay before these amounts are withdrawn from your bank account. Make sure you have enough money in your account to make these payments.
  • Interest continues to accrue during the deferral period and is added to the balance of your loan on each deferred payment date. National Bank will reimburse the interest on the interest accumulated on the deferred payments for the entire deferral period.
  • The amount of your payments will not change after the deferral period. 
  • Upon renewing your payments, the balance of your loan will be higher due to the outstanding principal and unpaid interest generated by the deferral. This could result in a higher payment amount.

The request to defer a payment or extend a deferral must be made no later than September 30, 2020.

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