Paused Payments
Mortgage Calculator

The calculator starts with the mortgage balance you enter and applies the illustrative annual interest rate and payment-pause term you select.

During a paused payments mortgage, you are not required to make regular monthly principal-and-interest payments during the applicable pause. Interest continues to accrue, however. For the longer-term paused payments structure modelled by the calculator, interest is calculated daily using a daily rate derived from the annual interest rate. Because that accrued interest is not being paid monthly, it contributes to the growing balance and compounds over time.

The calculator shows this progression under Balance Growth so you can see the estimated mortgage balance and interest accrued throughout the selected term.

The mortgage payments are paused, but interest continues to accrue.

Normally, part of your monthly cash flow is being directed toward your mortgage. During the payment-pause period, those required principal-and-interest payments are removed. The unpaid interest instead accumulates against the mortgage, increasing the amount owed.

That balance growth is an important part of evaluating a paused payments mortgage. The calculator deliberately shows it alongside the cash flow being freed up so you can consider both sides of the decision.

For the longer-term paused payments structure represented by the calculator, interest accrues daily. The daily rate is derived from the annual mortgage rate and applied to the outstanding mortgage balance.

Because there are no required monthly payments reducing the accrued interest, the balance increases. Interest subsequently accrues against that higher balance, creating a compounding effect.

This is why the calculator projects the balance year by year rather than simply multiplying the starting mortgage balance by the annual rate and number of years.

Monthly Relief represents the current monthly mortgage payment you entered and therefore the approximate monthly cash flow that would no longer be required for that mortgage payment during the selected pause.

The calculator also converts this into Annual Relief and the cumulative amount over the selected term.

For example, if your existing mortgage payment is $3,000 per month, pausing that required payment represents $36,000 of cash flow over 12 months.

That $36,000 is not a rebate, income or reduction in your mortgage. It represents money that is no longer leaving your household as a required mortgage payment during that period. Meanwhile, interest continues to accrue against the paused payments mortgage.

No. Full Term Relief measures the mortgage payments that would no longer be required during the selected payment-pause period based on the monthly payment you entered.

It is better understood as cash flow freed up rather than savings.

The financial cost of creating that cash-flow relief is reflected separately in the calculator’s Balance Growth section. Looking at the two figures together gives you a more meaningful picture of the potential benefit and cost of the payment pause.

Paused payments mortgages require a substantial amount of home equity because the mortgage needs room to grow as interest accrues.

Your loan-to-value ratio (LTV) compares the mortgage debt secured against your property with its estimated value. The calculator uses the information you enter to help illustrate your current equity position.

A lower LTV generally means there is more equity available to accommodate the growing mortgage balance. However, the calculator’s equity result does not determine whether you qualify. Maximum LTV requirements vary according to the available paused payments mortgage term and your overall application.

Interest has more time to accumulate during a longer payment pause.

As the term increases, the projected mortgage balance at the end of the pause also generally increases. This means more room may be required between the starting mortgage balance and the property’s value.

That is why selecting a longer term in the calculator can produce a substantially different balance and end-of-term equity position. The length of the pause is not simply a preference; the amount of available equity can affect which terms are available.

This section estimates how much home equity could remain after accounting for the projected mortgage balance at the end of your selected payment-pause period.

The calculator presents two scenarios: one without assumed property appreciation and another using the appreciation rate selected in the calculator.

This is important because your mortgage balance can be projected from the assumptions entered, but your home’s future market value cannot be known in advance. Showing both scenarios allows you to see the effect of the growing mortgage balance without relying entirely on future property appreciation.

It provides a more conservative way to examine the effect of the payment pause.

If the calculator assumed that your property would automatically increase in value every year, the projected increase could mask some of the effect of the growing mortgage balance. The Without Appreciation scenario keeps the property’s value unchanged and lets you see what happens to estimated equity based primarily on the projected mortgage balance.

This can be particularly useful when deciding how comfortable you are with the amount of equity the payment pause could consume.

The appreciation percentage is a modelling assumption used to explore what your equity could look like if your property’s value changed at that rate over the selected term.

It is not a forecast or guarantee of future property value.

Housing markets can rise, remain relatively flat or decline, and the performance of a particular property may differ from broader historical averages. Adjusting the appreciation assumption lets you test different scenarios rather than relying on a single prediction.

Yes. It can be a useful stress test.

Setting appreciation to 0% lets you see the projected effect of the growing paused payments mortgage balance without assuming that an increase in property value will compensate for some of that growth.

You can then compare that result with other appreciation assumptions. The difference helps illustrate how much of the projected end-of-term equity comes from the equity you already have versus an assumed increase in your property’s future value.

The adjustable rate allows you to explore how different interest-rate assumptions affect the projected mortgage balance and remaining equity.

The rate displayed in the calculator is illustrative and is not a mortgage quote or guaranteed rate. The actual rate available for a paused payments mortgage depends on the applicable term and qualification criteria at the time your application is reviewed.

Try changing the rate slightly higher and lower. Because interest is accruing against a growing balance, even a relatively small difference in the annual rate can become more noticeable over a longer payment-pause term.

The calculator needs to account for mortgage debt already secured against your property to provide a more meaningful estimate of your equity position.

Leaving secured debt out of the calculation can make the amount of available equity appear greater than it actually is.

A paused payments mortgage is registered in first position, so any existing mortgage or HELOC is typically paid out from the new loan at funding. Entering it does not mean that the calculator has determined exactly how that debt would be treated in your transaction. It simply produces a more complete picture of your current property debt when estimating equity and LTV.

No. The calculator is an educational and scenario-planning tool, not an approval system.

Home equity is an important consideration for a paused payments mortgage, but qualification can also depend on your property’s location and characteristics, credit profile, existing mortgage obligations, income circumstances and the requirements associated with the available payment-pause term.

A strong equity result indicates that the numbers may be worth reviewing. It does not constitute mortgage approval.

Paused payments mortgage terms can range from one to five years, and the terms available depend on where your property is located. In some areas, a 1-year term is an option; in others, terms start at 2 years.

The calculator allows you to model the financial effect of different pause lengths so you can see how the projected balance, accrued interest and remaining equity change over time.

Selecting a term in the calculator does not establish that you qualify for that term. The actual term available depends on your property location, equity position, credit profile and overall application.

Your equity could decline more quickly because the mortgage balance is increasing while the property’s value is decreasing.

This is an important risk to consider. Property appreciation is not required for the calculator to demonstrate how a paused payments mortgage works, and future appreciation should not be relied upon as the only way of maintaining sufficient equity.

You can use the calculator’s custom appreciation setting to model a more conservative property-value assumption and see how that changes the estimated equity remaining at the end of the term.

The accumulated mortgage balance ultimately has to be addressed.

Your exit could involve repaying the mortgage, selling the property, or arranging financing for the outstanding balance if you qualify at that time. The exact requirements depend on the paused payments mortgage structure applicable to your situation.

Future financing cannot be guaranteed because your income, credit, property value, mortgage balance, interest rates and lending requirements may be different when the payment-pause period ends. A realistic exit strategy is therefore an important part of evaluating the product.

The calculator is most useful when you consider Monthly Relief, Balance Growth and Equity at End of Term together.

Monthly Relief shows the immediate cash-flow impact of removing the required mortgage payment. Balance Growth estimates what happens to the mortgage as interest accrues. Equity at End of Term places that future balance against your property’s estimated value.