Mortgage Knowledge Base
A mortgage payment holiday is a temporary break from making mortgage payments that is granted to the borrower by the lender. Mortgage payment holidays are typically offered to borrowers who are experiencing financial hardship or other circumstances that make it difficult for them to make their mortgage payments.
During a mortgage payment holiday, the borrower is not required to make any payments on their mortgage, although interest will continue to accrue on the outstanding balance. At the end of the payment holiday, the borrower is normally required to resume making mortgage payments, which may also include a higher payment amount to cover the accumulated interest.
