You Missed Your Mortgage Payment. Now What?

In Ontario, if you’re late on your mortgage payments, the consequences can escalate over time—but you typically have multiple opportunities to catch up or work out a solution before losing your home. Here’s a clear breakdown of what happens:

Day 1: Payment Missed

What’s Happening:
You’ve missed your mortgage payment.

What to Do:

  • Check your bank account to confirm it wasn’t an error.
  • Contact your lender immediately—early communication shows good faith.
  • Ask if you can make a partial payment, or set up a repayment plan.

Options:

  • Use savings or emergency funds to cover the payment.
  • Borrow from a line of credit or credit card (as a short-term fix).
  • Request a temporary payment deferral (some lenders offer this for hardship).

Day 15+: Lender Can Serve a Notice of Sale

What’s Happening:
After 15 days, the lender can legally begin the Power of Sale process and serve a Notice of Sale.

What to Do:

  • Don’t ignore this notice.
  • Contact the lender to understand the full amount required to stop the process.
  • Speak with a mortgage broker, lawyer, or financial advisor.

Options:

  • Pay the overdue balance (arrears) plus penalties.
  • Negotiate a mortgage modification or extension.
  • Apply for a second mortgage or private loan to cover arrears.
  • Start preparing your home for sale, if that’s your backup plan.

Next 35 Days: Redemption Period

What’s Happening:
You have 35 days after receiving the Notice of Sale to redeem the mortgage—this means paying off the default plus costs.

What to Do:

  • Take this deadline seriously—it’s your last guaranteed window to keep the home.
  • Gather money from refinancing, selling, or personal sources.
  • Talk to a licensed mortgage broker to explore fast financing options.

Options:

  • Pay the required arrears in full (this “stops the clock”).
  • Secure a second mortgage or HELOC to pay off the default.
  • Sell your home yourself before the lender lists it—you’ll get a better sale price and avoid additional legal fees.
  • If needed, consult a real estate lawyer about your rights.

Day 50+: Property Can Be Listed for Sale

What’s Happening:
If no resolution is reached, the lender can proceed with the sale of your home under Power of Sale.

What to Do:

  • Act fast. Even if it’s listed, you may still be able to redeem the mortgage until the day of sale.
  • Ask the lender for a full breakdown of costs and sale plans.
  • Keep in touch with the lender and their lawyer.

Options:

  • Make a final attempt to pay the debt or refinance.
  • Negotiate a voluntary sale or delay to give you time to sell it yourself.
  • If you’re out of options, seek help from a credit counsellor or bankruptcy trustee to understand your legal protections.

✅ Summary of Your Options by Stage

StageBest Options
Day 1Contact lender, pay if possible, request short-term help
Day 15+Negotiate, consider second mortgage, get legal advice
Day 15–50Redeem the mortgage, refinance, sell privately
Day 50+Final chance to stop sale, negotiate delay, get legal support

In Short, This Is What You Should Do Immediately If You’re Behind

  • Contact your lender as soon as possible
  • Review your mortgage terms and late payment clauses
  • Get advice from a mortgage broker, real estate agent, or lawyer
  • Avoid ignoring letters or calls—this limits your options later

To get connected to a local mortgage broker fill in the form below. They will be able to assess your situation and provide available options.

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Ksenia Bichek

I'm a licensed Ontario mortgage agent & realtor, and Lead Writer at FinanceVine. I create educational content about mortgage, real estate, and insurance. Reach me at: [email protected].