As the situation surrounding COVID-19 continues to evolve, so does the financial impact the pandemic is having on Canadians. We know how challenging the current environment has been for our customers, communities and colleagues, and we are working to provide support and financial relief during this difficult time. To help Canadians, TD is offering mortgage payment deferrals and other financial relief options. Below are some of the most common questions customers have about mortgage payment deferrals.
To learn more, or to access our digital self-serve application, visit td.com/covid19.
What is TD doing to help Canadians during this time?
We are working with TD customers on a case-by-case basis, providing financial relief to those who need it. This includes up to a six-month payment deferral for mortgages.
How does a mortgage payment deferral work?
A mortgage payment deferral allows you to skip a mortgage payment – for up to the equivalent of six monthly payments – which provides flexibility if you're struggling to make your payment.
Does interest continue to accrue during a mortgage payment deferral?
Deferring mortgage payments means that you are not paying your mortgage principal and interest will be capitalized (i.e., added to the outstanding mortgage balance) on each payment due date. It's important that you understand this and take it into consideration when determining if this is the right solution for you.
Will my credit score be impacted if I defer my mortgage payment?
If approved for a payment deferral, we will report to the credit bureaus that the underlying product is "deferred". A deferred payment is not considered the same as a missed payment on credit bureaus or credit scores. We do not report a COVID-19 related "deferred payment" as a "missed payment".
Your credit score is calculated using a formula based on your credit report and reflects various factors. One of the factors that may affect your credit score includes the amount of your outstanding debts – which may increase as a result of a payment deferral.
For more information about credit reports and your credit score, you can visit the Financial Consumer Agency of Canada (FCAC) site, or contact the credit bureaus (also known as the credit reporting agencies), Equifax Canada and TransUnion Canada, directly.
Who is a mortgage payment deferral right for?
This is meant to provide interim financial relief and help with cash flow during this difficult time. If you can continue making your regular mortgage payment, you should.
At what point should I contact my bank about a mortgage payment deferral?
If you think you won’t be able to make your regular mortgage payment due to the COVID-19 crisis, it’s important for you to take quick action. Contact your bank or mortgage professional before you miss a payment.
Who is eligible for a mortgage payment deferral?
Customers who have recently experienced job loss, pay disruption, childcare disruption due to school or daycare closures, or illness related to COVID-19 may be eligible and will be assessed on a case by case basis. If you're not eligible for a mortgage payment deferral you should still talk to us to let us help you find a solution that works for you.
What about landlords whose tenants cannot afford to pay their rent?
TD customers who are landlords of a rental property with four units or less are eligible for the same mortgage payment deferral relief available to residential mortgage customers. If you're a landlord with five units or more, know that we are currently working through solutions for you and will share more information soon.
What is the process to apply for a mortgage payment deferral?
In response to the growing need, we now offer digital self-serve applications at td.com/covid19 to deliver relief more quickly.