Frequently asked questions about COVID-19

What type of financial relief is being offered?

How do I qualify for deferred payments?

What’s the benefit of deferring payments?

Is my credit score impacted by deferring my payments?

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

Yes. Review the details for each product:

For your mortgage

We don’t charge interest on interest during the deferral period. To provide you with immediate payment relief while experiencing temporary hardships, you have the option of paying accrued interest at the end of the period or adding the unpaid interest to your mortgage. If you choose to add the unpaid interest to your mortgage, your payments will be higher after the payment deferral period. In that case, the deferral will help you with your immediate cash flow needs but you’ll pay more interest over the term of your mortgage. For example, the monthly mortgage payment for a $300,000 mortgage with a 3% interest rate amortized over 25 years would increase by an average of $40.

Example of a payment deferral scenario: Mortgage

A client with a mortgage with an original principal balance of $300,000 amortized over 25 years at a 3% interest rate has a monthly payment of $1,419.74.

If the client defers the first 6 monthly payments, the interest portion of those payments will be added to the principal balance of $300,000 at the end of the deferral period, resulting in a new principal balance of $304,472.16. Because the principal balance has now increased, the monthly mortgage payments will increase to $1,460.73, so that the mortgage will still amortize over the same remaining 24.5 years.

For your line of credit

Interest will continue to accrue over the deferral period. The interest that accrued during the deferral period will be added to the outstanding balance of your line of credit. When reviewing your account transactions during the deferral period, you’ll notice your minimum payment amount credited to your account and then debited shortly after.

Example of a payment deferral scenario: Line of credit

A client with an outstanding balance of $10,000 on a personal line of credit and an 8% interest rate would have a minimum monthly payment of $200.

By deferring the 2 monthly minimum payments, the minimum payment is deferred and interest continues to accrue, so that the balance owing increases to $10,133.78. The next minimum payment due after the deferral period would be $202.68.

Example of a payment deferral scenario: Secured line of credit

A client with an outstanding balance of $50,000 on a secured line of credit and a 3% interest rate would have a minimum monthly payment of $125.00.

By deferring the 2 monthly payments, the minimum payment is deferred and interest continues to accrue, so that the balance owing increases to $50,250.31. The next minimum payment due after the deferral period would be $125.63.

For your loan

Interest will continue to accrue while the payment is deferred. The accrued interest will be added to the principal amount to be paid beginning on your next payment date after the deferral period. Your loan term will be extended by the number of months that your payment is deferred. The accrued interest over the deferral period will be divided equally throughout the remainder of your payments during your term.

How will I know if my request to defer payments is approved?

Will I be charged any fees if I defer my payments?

Simplii currently pays my property taxes or collects my creditor insurance premiums with my mortgage payment. What happens if I defer my payments?

Will my payment amount change as a result of deferring payments?

For your mortgage

We don’t charge interest on interest during the deferral period. To provide you with immediate payment relief while experiencing temporary hardships, you have the option of paying accrued interest at the end of the period or adding the unpaid interest to your mortgage. If you choose to add the unpaid interest to your mortgage, your payments will be higher after the payment deferral period. In that case, the deferral will help you with your immediate cash flow needs, but you’ll pay more interest over the term of your mortgage. For example, the monthly mortgage payment for a $300,000 mortgage with a 3% interest rate amortized over 25 years would increase by an average of $40.

If you have creditor insurance on your mortgage, we’ll also continue to collect the insurance premium portion of your mortgage payments from you during the deferral period and pay them to the insurer.

For your credit card

Your regular minimum payment will resume on your July 2020 statement, and may be higher as a result of a higher outstanding balance. Rest assured, we don’t charge interest on interest.

For your line of credit

Your next minimum payment after the deferral period may be higher since the accrued interest over the deferral period will be added to your outstanding balance. Creditor insurance premiums, if applicable, will continue to be charged to the line of credit, as it’s currently done today, during the deferral period. This will increase the line of credit balance used to calculate the payment due at the end of the deferral period.

For your loan

Your next regular payment may change based on the accrued interest over the deferral period which will be added to the principal amount of your loan. You’ll receive new documents in the mail after you’ve deferred with detailed information. Creditor insurance premiums won’t continue to be collected and the insurance premiums will be deferred as well. Deferred insurance amounts will be added to the next scheduled regular payment after the deferral period.

What’s the difference between payment deferral and payment forgiveness?

Is financial relief only available for mortgages?

If I already deferred a mortgage payment this year, can I still qualify for financial relief?

When I renew my mortgage next, will I have to pay the interest that was deferred?

What type of relief is Simplii providing on my Simplii credit card?

How does this reduced interest rate on my Simplii credit card impact me?

Do I need to opt-in to receive this reduced interest rate on my Simplii credit card?

Will I receive this reduced interest rate if I deferred a payment on my Simplii credit card?

What’s the contactless tap limit on my credit card?

What’s the Canada Emergency Response Benefit (CERB)?

What’s the Canada Emergency Student Benefit (CESB)?

What’s a non-sufficient funds (NSF) fee?

When will the NSF fee be debited from my account?