When you change your payment due date or payment frequency, the first new payment may not cover all of the interest that accrued since you made your last payment.
The interest adjustment amount covers any interest that accrued but is not covered by a regular payment.
For example, your payments are currently on the first day of each month and you would like to change your payment to the 15th of each month:
- Last payment in current frequency: June 1, which covers the period May 1 to May 31.
- First payment in new frequency: July 15, which covers the period June 15 to July 14.
- Interest adjustment: June 1 through June 14 were not covered by one of the payments above. Interest for these 14 days must be paid by you at the time the mortgage payment change is processed.
There is a fee to change your mortgage payment; however, if you request a payment schedule change within the first month of your mortgage, the fee is waived.
You can request your payment due date or payment frequency change by logging in to your myEquitable account at my.equitablebank.ca or by contacting Customer Service.