Does skipping a payment hurt my credit score?

No. Because the lender approves the skip in advance, it is not reported as a missed or late payment, so it does not damage your credit the way a genuinely missed payment would.

How much does skipping a payment really cost?

You do not pay the deferred amount now, but the interest for that period is added to your balance. Over time you pay interest on that added amount, so the skip raises your total mortgage cost slightly.

Can I skip more than one payment?

Some lenders allow multiple skips, often limited by your accumulated prepayment room or a set annual cap. The more you skip, the more interest is added, so check your lender's limits and the long-term cost.

Mortgage Glossary

What is Skip a Payment?

Skip a payment is a mortgage feature that lets you temporarily defer one or more regular payments to ease short-term cash-flow pressure. The catch is that interest keeps accruing during the skipped period and is added to your balance. As a result, you pay slightly more over the life of the mortgage.

Find my best mortgage Back to glossary

Quick answer

Also known as: skip a payment, payment deferral, miss a payment feature

Key points

Skip a payment lets you defer a scheduled payment without harming your credit.
Interest still accrues during the skip and is added to your balance.
The deferred payment is not forgiven; it increases your principal.
Eligibility usually requires being current and having prepayment room or equity.
It is best used sparingly for genuine short-term cash-flow needs.

Skip a Payment explained

Skip a payment, sometimes called a payment deferral, allows a borrower to pause a scheduled mortgage payment when money is tight, such as after a job change or a large unexpected expense. The lender does not treat the skipped payment as a missed or late payment, so it does not harm your credit, but the payment is not forgiven.

During the skipped period, interest continues to build on the outstanding balance. That unpaid interest is capitalised, meaning it is added to your principal, so your balance grows slightly and the loan effectively takes a little longer or costs a little more to repay. Eligibility usually depends on being current on payments and having built up enough prepayment room or equity, and there are often limits on how many payments you can skip.

What a Skip a Payment is for

The skip-a-payment feature exists to give borrowers a built-in safety valve for temporary cash-flow squeezes without resorting to a missed payment that damages credit. It buys breathing room during a tight month while keeping the mortgage in good standing with the lender.

How it can help you

Skipping a payment can relieve short-term financial stress, such as covering an emergency repair, without triggering late fees or credit damage. Knowing the cost helps you use it sparingly. Lenderoo shops 40+ lenders free, so you can compare which lenders offer flexible features like payment skips when you arrange or renew your mortgage.

When it comes up

Skip a payment is useful when you face a one-off financial pinch, such as a surprise car repair, a temporary income dip, or holiday spending. Deferring a single payment frees up cash that month while keeping your mortgage current.

Example: deferring one payment

Suppose your monthly mortgage payment is $2,000 and you skip one payment to handle an emergency expense. That $2,000 stays in your pocket this month.

However, interest on your balance, say $1,500 for that month, still accrues and is added to your principal. So while you saved $2,000 in cash flow now, your balance rises by about $1,500 and you will pay interest on that added amount going forward. It is a useful short-term tool, but it slightly increases the total cost of your mortgage.

Have a question about skip a payment?

Lenderoo shops 40+ lenders for free and matches you with a mortgage professional who explains every term — and finds your best rate.

Get pre-approved free Talk to an expert

Questions & answers

Skip a Payment: frequently asked questions

Common questions Canadians ask about skip a payment.

Keep learning

Related mortgage terms

Prepayment

Extra payment toward mortgage principal.

Read definition

Principal

The original amount borrowed, excluding interest.

Read definition

Interest Rate

The cost of borrowing money, expressed as a percentage of the loan amount.

Read definition

Amortization

The process of paying off a mortgage over time through regular blended payments of principal and interest.

Read definition

Blended Payment

A regular mortgage payment that combines both principal and interest into one fixed amount.

Read definition

Back to full glossary

Understand your mortgage with confidence

Lenderoo shops 40+ lenders for free and pairs you with a mortgage professional who keeps the jargon simple — and gets you a great rate.

Find my best mortgage Explore the glossary

Mortgage Glossary

What is Skip a Payment?

Find my best mortgage Back to glossary

Quick answer

Also known as: skip a payment, payment deferral, miss a payment feature

Key points

Skip a payment lets you defer a scheduled payment without harming your credit.
Interest still accrues during the skip and is added to your balance.
The deferred payment is not forgiven; it increases your principal.
Eligibility usually requires being current and having prepayment room or equity.
It is best used sparingly for genuine short-term cash-flow needs.