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
| Stage | Best Options |
|---|---|
| Day 1 | Contact lender, pay if possible, request short-term help |
| Day 15+ | Negotiate, consider second mortgage, get legal advice |
| Day 15–50 | Redeem 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.
