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How Does a Mortgage Deferral Work?

How Does a Mortgage Deferral Work?

If you are struggling to pay your mortgage due to losing your job or a portion of your income, a mortgage deferral can help. Keep reading to learn how a mortgage deferral works.

Deferring mortgage payments will not hurt your credit score. A lender-approved deferment is not a missed payment and will not show up on your credit report.


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No lender is going to forgive your mortgage payment. A deferred payment program allows you to roll a defined number of mortgage payments into your mortgage but you are still expected to pay all the money you owe with interest.

True financial hardship must be demonstrated to quality for mortgage deferrals. This means customers who are struggling to make the next mortgage payment due to losing their jobs or a portion of their income, with no cash reserve to make their payments.

Deferred payment programs are capped at six months usually. Six months is the longest deferment you should expect to receive, but no lender will do that all at once. You’ll need to request a deferral for each payment.

Watch the video above to learn more!

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