Updated November 11, 2026

If you’re worried about making your next mortgage payment, contact your lender as soon as possible. An approved deferral can give you breathing room during a temporary setback, but the deferred amount still has to be repaid.

What happens when you defer a payment?

A deferral is an agreement with your lender to postpone payments for a set period. Interest generally continues to accrue, and your lender may add unpaid interest to your mortgage balance. Ask how much you’ll owe when payments resume and how the arrangement will be reported to the credit bureaus. Get the terms in writing before relying on the deferral.

Compare the alternatives

Ask your lender what other relief it offers. Extending the amortization may lower your payment, but it can increase the total interest you pay. Refinancing may involve qualifying again, fees, and a penalty if you break your current mortgage. Ask for a comparison that shows your payment, fees, and overall borrowing cost under each option.

Questions to ask your lender

• When do regular payments resume, and how will I repay the deferred amount?
• How much will my mortgage balance and total interest increase?
• What will you report to the credit bureaus, and what happens if I still can’t afford the payment when the deferral ends?

See the Financial Consumer Agency of Canada’s guide to mortgage payment deferrals. If you’re in Ontario and want help comparing your mortgage options, contact A Simpler Mortgage.

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