How to Defer TD Mortgage Payment?

These days, it can be tough to keep up with mortgage payments. If you have a mortgage with TD Bank, you may be wondering if you can press pause on your payments for a little while.

The option to defer mortgage payments with TD Bank does exist, but there are some things you need to know first. Let’s walk through what mortgage deferral is, who qualifies, how to apply, and what happens after deferral ends.

What Is Mortgage Deferral?

Deferring your mortgage payments means you can temporarily pause making your regular monthly payment. Your lender allows you to skip payments for an agreed-upon time period, also known as a deferral term.

This doesn’t mean the debt goes away – you still owe the money. Interest continues accruing during the deferral period. Once the term ends, you resume making your regular payments as before. Any interest that accumulated gets tacked onto the total amount you owe.

Mortgage deferral can provide much-needed breathing room if you’ve lost income or are facing financial hardship. It’s not a long-term solution, but rather a way to get temporary relief until you can start making payments normally again.

Who Qualifies for Mortgage Deferral with TD?

TD allows both homeowner and business mortgage customers to apply for a deferral. To qualify, you’ll need:

• Your mortgage payments must be up to date – if you were behind before applying, you likely won’t get approved.
• Experiencing financial difficulty directly or indirectly due to COVID-19. This could include job loss, reduced hours, illness, etc.
• Your mortgage must be insured by the Canada Mortgage and Housing Corporation (CMHC). Most conventional mortgages are CMHC-insured.
• The property securing the mortgage must be your primary residence here in Canada. Vacation homes or rental properties don’t qualify.

If you have a TD mortgage but don’t meet these criteria, you may still be eligible for alternative relief options. Get in touch with them to discuss.

How Do I Apply for Mortgage Deferral with TD Bank?

You can request mortgage deferral in a few different ways:

• Online – Log into EasyWeb or the TD app and look for the “Apply for Mortgage Relief” button. Follow the steps to submit your application.
• By phone – Call 1-866-315-8563 to speak with a TD mortgage specialist. Tell them you want to apply for a mortgage deferral.
• In-person – Visit your local TD branch and talk to someone about getting mortgage relief.

No matter how you apply, you’ll need to provide documents that validate your COVID-related financial hardship. This could include pay stubs, employment records, medical forms, or utility bills.

TD aims to process applications within 5-10 business days. You’ll get an email when the decision has been made. If approved, they’ll contact you again to sign revised loan documents reflecting the new deferral terms.

What Are the Mortgage Deferral Terms with TD Bank?

If approved, TD offers mortgage deferral for up to 6 months. You can choose how long you want payments paused – it doesn’t have to be the full 6 months. Common deferral terms are 3, 4, or 6 months.

During the deferral period:

• You don’t need to make any mortgage payments.
• Normal interest continues accruing on the principal balance.
• TD will waive any late fees or NSF charges.
• Your account standing remains in good standing – it doesn’t show as delinquent.
• Credit bureaus are notified that you’re not late on payments.

Once the deferral period ends, you resume making your regular mortgage payments. Any interest that accrued gets added to the principal balance, meaning your future payments will be slightly higher.

TD does limit deferrals to a maximum of 18 months per mortgage. So if you get 6 months the first time, you could be eligible for another 12 later on if needed.

What Happens After My Mortgage Deferral Ends?

About a month before your deferral term expires, TD will send you a letter outlining the next steps. This will include your new payment amount and the date your normal payments resume.

If your financial hardship continues past the deferral period, you have some options:

• Apply for extended deferral – If another temporary pause would help, you can reapply for a second deferral for up to 6 more months.
• Switch to interest-only payments – Making reduced payments that cover just the interest portion can lower costs short term.
• Modify your mortgage – Longer-term solutions like extending your amortization can make payments fit your budget again.
• List payment alternatives – TD has other relief options like special payment arrangements that may assist.
• Refinance your mortgage – If your finances have recovered, think about refinancing for better terms. Rates are low right now.

The most important thing is communicating with TD early if you anticipate needing more help. They can walk you through the best next steps for your situation.

Other Important Deferral Details:

• Renters can also apply for deferrals on TD rental loans for 3 to 6 months.
• Home Equity Lines of Credit (HELOCs) and personal loans are currently not eligible for deferrals.
• Interest still accrues on credit cards and lines of credit during deferrals.
• Deferrals are designed for short-term relief only – not meant as permanent loan modifications.
• Payments missed during deferral get added to the end of your mortgage’s amortization schedule.
• Some deferral terms may affect your mortgage insurance eligibility in the future.
• Alternative lender relief does not waive your responsibility to pay – you still owe the full mortgage obligation.

Get Mortgage Payment Relief During Difficult Times

If the financial impacts of COVID-19 have made your mortgage unaffordable for now, deferral may help. TD Bank offers up to 6 months of flexible payment relief for eligible mortgage holders.

Contact them to learn more and apply. With some temporary breathing room, you can get back on track and resume normal payments once your situation improves.

Check our TD Mortgage Calculate to Calculate your Monthly Payment easily.

William Lyon