A payment moratorium
Way to temporarily reduce your monthly payments.
Way to temporarily reduce your monthly payments.
When you apply a mortgage payment moratorium to your loan, you pay a fixed amount for twelve months, which is lower than the monthly payment required under the loan terms. The difference is added to the loan principal, increasing the outstanding loan balance. This will result in higher monthly payments once the moratorium period ends.
The fixed monthly payment is calculated based on an interest rate that is 1, 2, 3 or 4% lower than the current interest rate on your loan.
A mortgage payment moratorium is only available for non-indexed mortgages with either variable or fixed interest rates.
If a moratorium is applied to a mixed mortgage, the moratorium will apply only to the non-indexed portion of the loan, not the indexed portion.
If your loan is switching from fixed interest rates to variable interest rates, you can apply for a moratorium once one instalment has been paid under the variable rate.
If you are refinancing your loan, the first instalment on the new loan must be paid before you can apply for a moratorium.
