Payment Holiday
A payment holiday is a temporary suspension of mortgage payments, typically 1-6 months, granted during financial hardship with interest continuing to accrue and extend the loan term.
| Holiday Terms | Structure |
| Duration | 1-6 months typical |
| Interest accrual | Continues during holiday |
| Payment resumption | Original or adjusted amount |
| Term extension | Added to maturity |
| Cost Analysis | Example |
| Original monthly payment | AED 11,684 |
| 3-month holiday | AED 0 payments |
| Interest accrued | AED 25,000 |
| Capitalized to balance | New balance higher |
| Extended term | Plus 3-4 months |
| Total additional cost | AED 40,000-50,000 |
| Eligibility Scenarios | Approved For |
| Medical emergency | Hospital treatment |
| Temporary job loss | Short-term unemployment |
| Maternity leave | Income reduction period |
| Business interruption | Seasonal business cycles |
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