Frequently Asked Questions
Will I qualify for a payment deferral?
We are here to help you get through this. Every member is in a unique situation and we will look at what makes the most sense for you. If you are facing job loss, pay disruption due to childcare challenges, or other loss of income and you’re worried about your ability to cover your loan costs and take care of yourself and your family, payment deferrals might be the right solution for you.
What does it mean to defer a mortgage or loan payment?
Payment deferrals (also known as skipping payments) can provide short term financial relief - allowing you to pay your debt later so that you can afford to pay for your essential needs now.
Deferring payments does not reduce your debt. You are still obligated to pay the amount of the skipped payment at a later date which is often accomplished by extending the remaining amortization or through a higher mortgage payment at renewal.
There are a number of things you’ll want to consider when looking at payment deferrals and our team is ready to help you understand your options. For instance, how many months you should defer (1 month up to 6 months) and whether you should defer your entire payment or keep paying the interest portion.
The first thing we’ll recommend, depending on your financial situation, is continuing to pay your interest costs and defer only the principal. This means it could take you longer to pay off your mortgage but you won’t accrue any extra interest costs.
If you do need to defer your entire payment (principal plus interest), it’s important to know that the unpaid interest is added to the principal balance of your loan. This means you will likely have a higher principal balance when you need to renew your loan. Also, though it may not be a substantial amount, future interest will accrue on this higher balance.
For loans, the loan may not be paid off at the end of the existing term and a renewal may be required.
Will it cost me more in the long term to defer my mortgage payments?
Not necessarily, but it can. It depends on a few things. For instance, as you’ll see above, if you defer your interest as well as your principal, while likely not substantial, you can accrue additional interest costs. Every member’s situation is different; your Interior Savings representative will work with you to help you understand your options and choose the one that will best serve you today and in the future.
Is there help available for credit card payments?
Our credit card partner, Collabria Financial, has added a temporary interest rate reduction to their financial relief bundle.
In addition to payment deferrals, cardholders facing financial hardship can receive a temporary interest rate reduction on purchases and cash advances to 10.9% for up to 6 months. This offer will be available to all qualified cardholders. The one exception is Centra Gold cardholders who will continue to be eligible for the Payment Deferral program, however are already in a low interest rate product.
Cardholders can apply for Collabria’s ‘Financial Relief Bundle’ in three-month increments, with an option to extend for another three months if they are still experiencing financial hardship due to the COVID-19 pandemic. To learn more and apply, contact Collabria at 1-855-341-4643.
Are there other options for financial relief?
Yes, depending on each member’s situation, there are a variety of ways we may be able to support our members. For instance, if you have mortgage secured by Genworth or CMHC insurance, we will also work with those partners to find solutions for you.
