Mortgage Relief · Ontario
Can You Defer Mortgage Payment Amounts in Canada?
Written by Paul Tsigaris, Mortgage Broker & Owner, TurnedAway.ca · 30+ years, $500M+ funded · Last reviewed: August 2026
If money is tight this month, you may be asking whether you can defer mortgage payment obligations in Canada — pressing pause on your payments until you get back on your feet. A deferral can buy real breathing room, but it is your own lender’s decision, and it is not the right fit for everyone. If a deferral is off the table, there are still solid options for missed mortgage payments in Ontario.
or call 1-855-668-3074
A mortgage deferral is a temporary agreement with the lender you already have — the bank or lender who holds your mortgage. It is not something a broker arranges for you, and it is not forgiveness. You are asking your lender to let you pause or reduce payments for a short window, and in return the interest you skip is added onto your balance. Used at the right moment, it can carry a good homeowner through a temporary rough patch.
The catch is timing. Lenders grant deferrals to homeowners whose accounts are still in good standing — before payments are missed. If you have already fallen behind, most lenders will say no, and a deferral is no longer the tool for the job. This page walks through how a deferral actually works, what it costs, and — just as importantly — what your options are as an Ontario homeowner if your lender turns you down or you are already behind.
To defer a mortgage payment means arranging with your own lender to pause or reduce your payments for a set period. It is a temporary agreement — sometimes called a payment holiday or a skip-a-payment — not a cancellation. Interest keeps building during the pause and is added to your principal, so your balance grows and your payments rise afterward to make up the difference. Deferral is granted entirely at the lender’s discretion and usually requires your account to be in good standing, which is why homeowners who have already missed payments generally need a different route.
How to Ask Your Lender to Defer Mortgage Payment Amounts
Because a deferral lives entirely with your current lender, the process starts and ends with them — not with us. Here is what it actually involves.
1. Call your lender before you miss a payment
The single biggest factor in whether a deferral gets approved is whether you are still current. Reach out the moment you can see trouble coming — not after a payment bounces. Explain the situation plainly and ask specifically about a deferral, a skip-a-payment, or a modified payment plan.
2. Confirm you meet their eligibility
Every lender sets its own bar, but you are generally more likely to qualify when:
- Your mortgage account is in good standing (no missed payments yet)
- The hardship is temporary and you can show a path back to normal payments
- The property is your primary residence or a secondary home
- Your mortgage is insured or uninsured (both can qualify; insured mortgages need the insurer’s sign-off)
3. Get the terms in writing
Before you agree, ask exactly how much interest will be capitalised onto your balance, whether your amortisation is extended, what your new payment will be, and — critically — whether the deferral will be reported to the credit bureaus. Deferral requests are assessed case by case, so the details matter.
4. Understand the credit picture
A deferral you and your lender agree to in advance is generally not reported as a missed payment, so it usually does not ding your score the way an unarranged missed payment does. A payment you simply skip without an agreement is a different story — that gets reported and hurts your credit. Policies vary by lender, and a rising balance can still affect your overall credit profile, so confirm the reporting before you sign. Canada’s Financial Consumer Agency of Canada is a neutral resource on your rights here.
What a Deferral Actually Costs You
A deferral is not free money — it is borrowed time you pay back with interest. Three things happen the moment you pause payments:
- Your principal does not shrink. If you owe $320,000, you still owe $320,000 when the deferral ends — none of it got paid down.
- Interest keeps accruing and gets capitalised. The interest you would have paid is added onto your balance, so you end up paying interest on interest for the rest of the mortgage.
- Your payments go up afterward. To repay the larger balance on the same timeline, your recalculated payment is higher than before.
Illustrative example
On a $320,000 balance at roughly 5%, the interest is about $1,330 a month. Defer four payments and you add roughly $5,300 to your balance — money you now carry (and pay interest on) until the mortgage is paid off, on top of a slightly higher monthly payment when regular payments resume. Figures are illustrative only; your lender’s numbers will differ.
One more thing to confirm: whether your property tax and any optional credit insurance are bundled into the deferral or must keep being paid. Some lenders defer them; others do not.
Deferral Is Not the Only Tool Your Lender Has
If a full deferral is not available or not ideal, ask your lender about these — they are all decisions your current lender makes, not ours:
Skip a payment
A short, built-in feature most lenders cap at one or two skips a year. You usually need to be ahead on payments to use it, and the skipped interest is still added to your balance.
Extend your amortisation
Stretching the repayment period lowers each payment, but it lengthens the mortgage and increases the total interest you pay over its life.
Blend and extend
Your lender blends your existing rate with a current rate into a new one. If today’s rate is lower, this can trim your payment without breaking the mortgage.
Interest-only for a period
You cover only the interest for a set time. It lowers the payment short-term, but the principal is not shrinking, so it costs more overall.
Borrow back prepayments / capitalisation
If you have prepaid, some lenders let you draw those funds back to cover payments. Others can capitalise arrears — rolling overdue amounts into the balance, usually a one-time option that raises what you owe.
If a Deferral Isn’t an Option — What We Can Do
Here is where we come in. If your lender declines a deferral, or you are already behind and a deferral is no longer on the table, you still have options — and they are based on the equity in your home, not your income or your credit score. There are no T4s, no Notice of Assessment, and no proof of income to produce. We arrange financing responsibly, up to 80% of your home’s value, so you always keep an equity cushion.
You’ve already missed payments
Deferral needs good standing, so once you are behind it usually won’t help. Start with our guide on what to do about missed mortgage payments, and see what happens if you miss a mortgage payment and how many payments you can miss before foreclosure. If a lender has already started enforcement, learn how to stop a power of sale.
Your lender said no
A second mortgage or a mortgage refinance can catch you up and reset your payments. If high-interest debt is the real pressure, we can consolidate your debt into one manageable payment using your home equity.
You’re in a temporary income gap
If the reason you wanted a deferral is a temporary income gap — a layoff, a termination, or an illness — a prepaid home equity loan can give you the same breathing room a deferral would, with no monthly payments. The interest is prepaid, it works as a short-term bridge of about a year, and it needs a realistic exit plan. We can often arrange this, subject to appraisal and lender approval.
If you are 55 or older
Homeowners aged 55+ may have another route worth exploring — see our guide to the reverse mortgage and how it compares.
Not sure a deferral is enough? Let’s look at everything.
We review your equity and your situation and lay out your real options in plain language — usually within 24 to 48 hours.
or call 1-855-668-3074
Frequently Asked Questions
Can I defer mortgage payment amounts if I have already missed one?
Usually not. A deferral almost always requires your account to be in good standing, so once you have missed a payment most lenders will decline. At that point equity-based options — a second mortgage, refinance, or debt consolidation — are typically the better route.
Does deferring my mortgage hurt my credit score?
A deferral you arrange with your lender in advance is generally not reported as a missed payment, so it usually does not damage your score the way an unarranged missed payment does. Reporting policies vary by lender, and a rising balance can still affect your overall credit picture, so confirm how it will be reported before you agree.
How long can I defer my mortgage payments?
It depends entirely on your lender. Skip-a-payment features are usually limited to one or two payments a year, while a negotiated deferral runs for a set period the lender approves. Insured mortgages need the insurer’s approval before a longer deferral is granted. There is no universal maximum — it is a case-by-case decision.
Do I have to repay the deferred payments?
Yes. A deferral is a delay, not forgiveness. You repay the full amount — both the principal you paused and the interest that accrued during the pause. Nothing is cancelled or erased, and there is normally no lump sum due; the balance is folded back in and your payments are recalculated.
What is the difference between deferring a payment and skipping one?
They overlap, but a skip-a-payment is a short built-in feature — often one or two payments a year and usually needing you to be ahead — while a deferral is a negotiated pause over a longer, set period. Both add the unpaid interest to your balance; the deferral is simply the larger, more formal arrangement.
Can I end my mortgage deferral early?
Many lenders let you end a deferral early once your finances recover, which cuts down the extra interest you accumulate. Cancellation policies vary, so check with your lender. Increasing your payments afterward or making prepayments also helps offset the added cost.
What if my lender won’t approve a deferral?
If your lender declines, or you are already behind, you still have equity-based options. A second mortgage, a refinance, debt consolidation, or — for a temporary income gap — a prepaid home equity loan with no monthly payments can create the breathing room you need. We approve on the equity in your home, not your income or credit score. Call us at 1-855-668-3074 for a free assessment.
A deferral is one option — not your only one.
Whether it’s a second mortgage, a refinance, debt consolidation, or a prepaid home equity loan with no monthly payments, we’ll find the route that fits — based on your equity, not your credit score.
or call 1-855-668-3074
