Should I Defer My Mortgage Payments?

Mortgage Deferral

Difficulties in making mortgage payments can come up at any time as a result of a family income reduction, unexpected expense, or job loss. Mortgage deferrals have been launched into the spotlight as a result of the COVID-19 pandemic, but unfortunately there's no single answer or solution for everyone. It's important to understand whether deferring your mortgage payments is the right option for you – and what the consequences may be.

What is a mortgage deferral?

A mortgage deferral is an agreement between you and your mortgage lender. Sometimes called a forbearance agreement, it's a temporary measure with a defined timeframe. The agreement indicates that you and your lender have agreed to pause or suspend your regular mortgage payments (principal and interest) for a certain amount of time.

A payment deferral does not cancel, erase, or eliminate the amount owed on the mortgage. After the agreement ends, your mortgage payments return to normal and the missed payments – including principal and accumulated interest – must be repaid.

It's important to know the interest that is not paid during the deferral period continues to be added to the outstanding principal of your mortgage. This can affect the total amount you will owe to the lender at the end of your mortgage term.

How do I get my mortgage deferred?

You must contact your lender directly in order to arrange a mortgage deferral. While it can be frustrating to wait for the answer you need, it is the only way to make a plan to pause your regular payments. If you need help finding your lender's information, we have an online list here.

We understand that each lender is qualifying and arranging payment deferrals on a case-by-case basis. The terms are equally varied, depending on each household's circumstances. The best advice we can provide is to be open and candid with your lender about the challenges you are facing.

Can I pause all bills related to my home?

Under a mortgage deferral, only the mortgage payment (principal and interest) can be paused. If your property taxes or insurance amounts are also collected with your mortgage payment, you will need to contact the company or agency to whom those amounts are owed and make separate arrangements.

If you are able to make your regular payment, you should continue to do so. However, if at any point you foresee financial challenges you should contact your lender immediately – ideally before you miss a payment. It's important for you to take quick action and to keep the lines of communication open with your lender to come up with a plan that works for everyone involved.

The Auxilium Team is here to support you through this challenging time. Give us a call at 250-590-6520 (toll-free 1-855-590-6520) or use the contact form on our website to let us know how we can assist you. We are ready and able to complete your mortgage application and approval remotely for your refinance, renewal, or property purchase.


Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.