How does the deferral work?

The principal portion of payments are suspended for a defined period of time, but interest payments continue to be charged and are due and payable in accordance with the terms of your loan. The amortization period of your loan is extended by the same number of months as your deferral period.

If you have life and/or disability insurance on your loan, those premiums will continue to be debited from your account to maintain your coverage.

How does repayment work?

When your loan payments of both principal and interest resume after the end of the deferral period, your payment amounts will remain the same until the last payment of your loan. The last payment of your loan will be larger than the others. This increase is a result of the deferred payments, as you will not have paid all the principal and interest owing by the end of the amortization period of your loan.

What should you consider?

Deferring payments may significantly increase your interest costs over the life of your loan, so it's important to evaluate your financial situation and priorities before exercising this option. Please connect with us about the possible impacts of deferring your loan payments.

Repayment strategies

If you’re concerned about not having sufficient funds available when your payments resume, please connect with us prior to the end of the deferral period to explore more manageable options. Likewise, if you’d like to repay deferred payments early, please connect with us.