Once every 12 months you have the option to skip mortgage payments (principal and interest), provided that:
- The mortgage must not be in arrears.
- Your current mortgage balance, together with the amount of the payments you wish to skip, does not exceed the original amount of your mortgage.
You can skip up to four consecutive weekly payments, up to two consecutive bi-weekly or semi-monthly payments, or one monthly payment. You will still be responsible for paying your usual insurance premiums and property tax installments, where applicable.
There is no fee for this option, and your payments won't change during the term of your mortgage. Instead, any skipped interest is added to the principal balance.
What you need to know:
You will still be responsible for paying your usual creditor insurance premiums and property tax installments, where applicable.
There is no fee to skip a payment. When you skip a payment, the interest on the skipped payment is added to your outstanding balance and interest is charged on that amount. This means your mortgage balance will increase. Your payments won't change during the term of your mortgage. Instead, at renewal your monthly payment amount increases to account for the higher balance. When you skip a payment you must still pay the portion of your payment that covers your property taxes and HomeProtector Insurance Premium, if applicable.
Note: Using Skip-a-payment may significantly increase your interest costs over the life of your mortgage, so it's important to carefully evaluate your financial situation and priorities before exercising this option. Try our calculator to find out what it could cost.
If you wish, you can repay your skipped payment anytime during the term of your mortgage. If you have made double-up payments during the term of your mortgage, you have the option to skip an equal amount of payments.
Thinking About Skipping a Mortgage Payment?