Behind on Mortgage Payments in Ontario? Here’s What You Need to Know

Falling behind on your mortgage is one of the most stressful situations a homeowner can face. It can feel like you’re drowning in bills, getting pressure from the bank, and unsure where to turn. If you’re in that position right now, take a deep breath. You’re not alone — and you do have options.

This blog will walk you through what happens when you miss mortgage payments in Ontario, and what you can do to protect your equity, credit, and peace of mind.

What Happens If You Miss Payments in Ontario?

When you miss one or two mortgage payments, most lenders will contact you with reminders. But if the missed payments continue, things escalate quickly.

Here’s the general process:

• After a few missed payments, your lender can issue a Notice of Sale under Power of Sale.

• You’ll be given a redemption period to catch up — typically 35 days.

• If you can’t catch up, the lender can sell the property without your permission.

• You could lose most of your home’s equity and still be on the hook for legal or deficiency costs.

It’s serious — but if you act early, you have options.

Option 1: Refinance or Negotiate with Your Lender

If your income has stabilized or you’ve only recently fallen behind, you might be able to:

• Refinance with a new mortgage lender

• Get a second mortgage to catch up on arrears

• Work out a temporary deferral or payment plan with your current lender

This works best if you still have decent credit and income. Be cautious about private lenders — some charge very high interest rates or upfront fees. Always read the fine print.

Option 2: Sell the Property Before the Bank Steps In!

If catching up isn’t realistic, selling the property before the lender takes control can protect your credit and let you walk away with money in hand.

You have two options:

1. List with a Realtor

• Can take several weeks or months

• Suitable if your home is in good condition

• Expect to pay commissions and closing costs

• Might be too slow if you’re already deep in arrears

2. Sell Directly to a Cash Buyer (like our company)

• Sell the property quickly — often in 30 days

• No repairs, no cleaning, no showings

• We cover the legal costs

• You pick the move-out date

This is often the best option if time is tight or the home needs major repairs. You avoid the stress of showings and agent fees — and you avoid losing everything to the bank.

Option 3: Do Nothing and Let the Bank Take Over

This is the worst-case scenario. If you wait too long and take no action, the Power of Sale process moves forward.

Here’s what happens:

• The lender sells the home, often at a discount

• You lose control of the process

• You may walk away with little or no equity

• You could owe the lender more if the sale doesn’t cover the mortgage and costs

• Your credit takes a major hit that can affect your future borrowing

Doing nothing is a decision — and usually a very expensive one.

Ready to Talk?

If you’re behind on your mortgage and not sure what to do next, give us a call or send us a message. We’ll explain your options clearly — no pressure, no obligation.

Call or Text: 647-461-4718
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Legal Disclaimer:
This blog is for general informational purposes only and does not constitute legal, financial, or real estate advice. Every situation is different. We recommend speaking with a licensed mortgage broker, lawyer, or financial advisor to explore the best options for your specific needs.