When you need to respond to an unexpected situation, it is great to know that you may have the flexibility to pause a mortgage payment.
Payment Pause might be right for you if you need to:
- Respond quickly to an unexpected situation
- Take a short break from making your mortgage payment
- It gives you the flexibility to skip the equivalent of one monthly mortgage payment
- One time per calendar year
- No more than four times during the amortization period of your mortgage
- Skipped payments do not need to be consecutive, so long as they do not exceed the equivalent of 1 monthly payment per calendar year or cross over the calendar year end
|Payment Frequency||Monthly Mortgage
|Bi-weekly, bi-weekly rapid or semi-monthly||2 payments|
|Weekly or rapid weekly||4 payments|
A payment pause will result in interest capitalization. Find out what that means for your mortgage below.
Flexible Mortgage Payment Features will result in interest capitalization. That means the interest will be added back to the principal outstanding on your mortgage.
- Interest is added back on each mortgage payment due date.
- The amount of interest being capitalized cannot cause your mortgage to exceed the lesser of a 90% loan-to-value ratio or exceed your original principal balance.
- The loan-to-value (LTV) ratio expresses the amount of a mortgage as a percentage of the total appraised value of a property, as determined by TD Canada Trust.
- If necessary, we will adjust the amortization period remaining at renewal so that the mortgage does not exceed the original amortization period remaining. This may result in an increase to the amount of your regular payments after the renewal.
Property taxes and mortgage critical illness and/or life insurance must continue to be paid (if applicable).
To be eligible, all TD Canada Trust debt, including your mortgage, must be – and continue to be – up to date, with no current delinquencies or arrears. As well, there must be no evidence of previous bankruptcy or written off debt.
I’m taking time off to make memories thanks to a TD Payment Vacation.