It's still a strange thing to do for me. Dunno. Maybe I'm tone-deaf.
Are people not allowed to work, thus not getting salaries during this month, thus needing the payment holiday?
What about those who are in a position to still earn a salary during this time, like remote workers. Are they now forced to not pay their mortgage, or can they pay like normally?
Like you said, the interest on that one payment holiday is shocking!
Below calcs are for my home country, South Africa:
R1,000,000 loan, 20 year mortgage, results in a ~R9,700/month payment. Skipping one month within the first two years of this term results in additional interest of more than R60,000 and extending the term by at least 7 months.