If rising costs are squeezing your cash flow, a Paused Payments Mortgage can give you breathing room. You unlock a portion of your home equity, make no monthly payments during the term, and repay when you sell, refinance, or pay out early. It’s built for Canadians who need time and flexibility without losing ownership.
Access Equity Now. Pause Payments. Keep Control.
How a Paused Payment Mortgage works
You borrow up to 60% of the appraised value of your home in eligible cases. There are no monthly payments for up to five years. Interest accrues and compounds during the term and is settled when you exit or at maturity. There are no prepayment penalties, so you can repay early if life changes. Available to homeowners of any age in Ontario, British Columbia, and Alberta (subject to approval and property criteria).
Who Benefits from Pausing their mortgage payments
- Homeowners who need short-to-medium-term relief from payments
- People planning to refinance, downsize, or sell within a few years
- Owners who want to consolidate higher-interest debt or fund key goals (repairs, accessibility, family support) without taking on a monthly obligation
Key advantages
- No monthly payments during the term, easing cash flow
- Open term – pay out anytime with no prepayment penalties
- No age restriction; approval focuses on property and equity
- Up to 60% LTV in eligible scenarios, subject to appraisal and location
Important considerations
- Interest adds to your balance while payments are paused. Plan your exit (refinance, sale, or payout) before maturity.
- You must keep property taxes, insurance, and maintenance up to date.
- This is not a short-term “payment deferral”; it’s a mortgage designed with no payments for the term and a scheduled settlement at or before maturity.
What you can use the funds for?
Cover rising costs, clear higher-interest debt, complete essential home updates, support family, or bridge to your next move; all without adding a monthly payment during the term.
Get advice you can trust
The Reverse Mortgage Source is Canada’s number one Reverse Mortgage learning portal. When you’re ready, mortgage solutions are powered by The Financing Factory. We’ll review your equity, location, property type, and exit strategy and give you straight answers in plain language.