Behind on Mortgage Payments in Ontario? Act Before the Bank Does

Missing a mortgage payment feels terrifying. But here is the truth — you have more time and more options than you think, and taking action immediately is the single most important thing you can do.

What Happens When You Miss Mortgage Payments

1. 1 missed payment — Lender contacts you. Late fees apply. No legal action yet.
2. 2-3 missed payments — Formal notice of default. Demand letter issued.
3. Notice of Sale — 35-day redemption period to pay arrears.
4. Power of Sale — Bank begins selling your home.

Your Options at Each Stage

Contact Your Lender Immediately

Many lenders offer hardship programs, payment deferrals, or restructured plans. The earlier you call, the more they can help.

Refinance with a Private Lender

A private lender may refinance your home, pay off arrears, and give you a new payment structure. Buys time while you stabilize.

Sell Before Power of Sale

If catching up is not realistic, selling quickly and using proceeds to pay off the mortgage preserves your credit and ensures you receive remaining equity. Almost always better than waiting for the bank.