COVID-19 Mortgage Deferral Programs for homeowners

Region: Ontario Answer # 7214

What is mortgage payment deferral?

Mortgage payment deferrals mean that you can postpone payment of your mortgage. A mortgage deferral helps you when you’re struggling to make your payments by allowing you to skip your mortgage payment for a specified amount of time. If you think you will not be able to make your regular mortgage payment, it is important to contact your lender as soon as possible before you miss a payment.

The exact terms of your agreement are made between you and the lender who holds your mortgage, which is often a bank. The agreement, usually called a mortgage deferral agreement or mortgage forbearance agreement, will state that you and your lender have agreed to temporarily defer (suspend) your mortgage payments for a certain period of time.

After the agreement ends, your regular mortgage payments resume, and the deferred payments (including both principal and accumulated interest), must be repaid. Because the payments keep accruing (building up) during the time that they are suspended, it can be very difficult to repay the larger amount once the agreement term ends.

Deferred payments are NOT erased or cancelled

The mortgage deferral agreement does not cancel, erase or eliminate the amount owed on your mortgage.

In addition, the interest that hasn’t been paid during the deferral period continues to be added to the outstanding principal of your mortgage. This can affect the total amount you owe in accordance with the original payment schedule. Details of the repayment will vary according to the specific lender and situation. Further, mortgage payment deferrals focus solely on your mortgage. These agreements do not affect other payments such as property taxes and insurance.

Who is eligible for a mortgage payment deferral?

Your lender can tell you if you are eligible for a mortgage payment deferral plan.

How is CMHC helping with mortgage deferrals?

The Canada Mortgage and Housing Corporation (CMHC) is allowing lenders to offer deferred payments for insured mortgages.

If your mortgage is not ‘CMHC insured’, contact your lender to see what options are available for you.

More info

For information on other available supports for individuals and businesses, visit the Government of Canada Economic Response Plan website.

For up-to-date information on Coronavirus COVID-19, visit Health Canada, the World Health Organization, and our related links.


You now have 3 options:

Was your question answered?

Yes    No

What information would you like to see added?

Submit an Edit Request

What are your changes?*

Page loaded. Thank you