If I defer payments, does interest accrue during the deferral period?

Yes. Please review the details for each product.

Personal banking

For your mortgage, we don’t charge interest on interest during the deferral period. The interest that accrues during the deferral period will be added to the principal balance of your mortgage, at the end of your deferral period, to provide you with immediate payment relief while experiencing temporary hardships. As a result, once payments resume, you’ll continue to pay interest on the new principal amount, and your payments may increase after the deferral period.

For your personal credit card, the accrued interest each month during the deferral period will be added to your account at the end of each statement period. Rest assured, we don’t charge interest on interest. Once your payments resume, your minimum payment may be higher as a result of a higher outstanding balance.

For your line of credit, the interest will continue to accrue over the deferral period. Once your payments resume, your minimum payment may be higher as a result of a higher outstanding balance or accrued interest during the deferral period.

For your loan, interest will continue to accrue while the payment is deferred.

For fixed rate loans, once payments resume, your payment will remain the same until your last payment on the loan when any additional accrued interest over the deferral period will be due.

For variable rate loans, once payments resume, you’ll continue to pay interest on the principle, and your payments will remain the same until the end of the current loan term. Upon renewal, your payments may increase.

For auto loans opened in car dealerships, interest accrued over the deferral period will be charged at the maturity of your loan. You’ll have additional payments at the end of the term of your loan. Once your payments resume, your payment amount will remain unchanged and continue as per your set payment frequency. These additional payments will be for the payments deferred, plus any additional interest accrued over the deferral period.

Business banking

For your business credit card, the accrued interest each month during the deferral period will be added to your account at the end of each statement period. Rest assured, we don’t charge interest on interest. Once your payments resume, your minimum payment may be higher as a result of a higher outstanding balance.

For your business line of credit, the interest will continue to accrue and will be added to the outstanding balance. After your deferral period ends, you’ll be required to make a payment sufficient to cover any deferred, arrears and over limit amounts. If you make a deposit within the deferral period, the interest will be deducted from your payment.

For your business loan, if you have a blended payment, the accrued interest over the deferral period will be deducted from the principal portion of the next payment made. As a result, once payments resume, your payment will remain the same until your last payment on the loan when any additional accrued interest over the deferral period will be due. For principal and interest payments, the accrued interest over the deferral period will be added to your next payment after the deferral period. You’ll have additional payments at the end of the term of your loan to make up for the deferred payments. These additional payments may be higher, due to the additional interest accrued on the deferred principal.