Real Estate

Interest only mortgage deferral

  • Last Updated:
  • Apr 29th, 2020 4:51 pm
[OP]
Member
Dec 26, 2015
409 posts
173 upvotes
Manitoba

Interest only mortgage deferral

So I was talking to my bank's mortgage advisor about options with regards to possible mortgage deferrals as my income has taken a hit.

They suggested since I don't feel like I need a full mortgage deferral that I could do a interest only payment for a couple of months to help ease the burden of current ongoings.

What are everyone's thoughts on this? I understand I still owe the money and will either lump-sum once my work hours return to normal or I'll adjust future payments to make up the difference. And I'm also aware it'll increase the total cost of my mortgage because of carrying over these payments.

Just wondering if there are any other drawbacks I should look for?
3 replies
Member
User avatar
Jan 7, 2019
305 posts
284 upvotes
If you need money to put food on the table and pay bills so your water, electricity and heat doesn't get turned off...the obvious choice is to defer your mortgage payments.

Do a 3 month budget and see how much you're short by and then make an educated decision afterwards.
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Deal Addict
Nov 24, 2013
1118 posts
557 upvotes
Toronto
If you can afford to make interest only payments, go for it. From what I've heard, if you defer the entire payment, you end up paying interest on the deferred interest.

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