Missed mortgage payments? You are not alone. In fact, the number of homeowners who are facing mortgage arrears is a growing concern in our Country. Owning a home is a significant milestone, but it also comes with financial responsibilities, one of the most critical being mortgage payments. However, life can throw unexpected challenges our way, and sometimes, despite our best efforts, we may find ourselves unable to make a mortgage payment on time.
Missing a mortgage payment can be a stressful experience, but it’s essential to remain calm and take proactive steps to rectify the situation. Whether it was due to financial hardship, oversight, or unexpected circumstances, there are strategies you can employ to address the issue and prevent further complications. In this blog post, we’ll discuss practical steps to help you navigate through a missed mortgage payment and get back on track with your payments.
Understanding the Consequences
Before delving into solutions, it’s crucial to understand the potential consequences of missing a mortgage payment. These can include:
Late fees: Most mortgage agreements stipulate a grace period after the due date, during which you can make a payment without incurring penalties. However, once this grace period expires, late fees may be applied to your account.
Negative impact on credit score: Your payment history holds considerable weight in determining your overall creditworthiness. A missed mortgage payment can result in a decrease in your credit score, making it more challenging to qualify for future loans or obtain favorable interest rates.
Risk of foreclosure: While missing a single mortgage payment typically won’t lead to foreclosure immediately, repeated missed payments can put you at risk of foreclosure proceedings. It’s crucial to address the issue promptly to avoid the possibility of losing your home.
How late can a payment be considered as ‘missed’ mortgage payment?
In Canada, the specific timeframe for when a mortgage payment is considered “missed” can vary depending on the terms of your mortgage agreement and the policies of your lender. Typically, mortgage lenders provide a grace period after the due date during which you can make your payment without incurring penalties or being considered delinquent.
The grace period for mortgage payments in Canada commonly ranges from 15 to 30 days past the due date. During this period, you can make your payment without facing late fees or negative consequences on your credit report. However, it’s essential to check the terms of your mortgage agreement to confirm the specific grace period provided by your lender.
Once the grace period expires and you still haven’t made your payment, your mortgage may be considered “missed,” and you could face late fees, negative impacts on your credit score, and potential risks of foreclosure proceedings. Therefore, it’s crucial to make your mortgage payment within the grace period to avoid these consequences.
If you’re unable to make your payment within the grace period due to financial difficulties or other reasons, it’s advisable to contact your lender as soon as possible to explain the situation and explore options for resolving the issue. They may be willing to work with you to find a solution and prevent further problems.
Financial Options to Repay Missed Mortgage Payment
Missing a mortgage payment can have significant consequences for homeowners, affecting their finances, creditworthiness, and ultimately their ability to retain ownership of their home. Here are some of the financial solutions that can help repaying your missed mortgage payments:
Home Equity Loans:
How it works: A home equity loan allows you to borrow against the equity you’ve built up in your home. The equity is the difference between the current market value of your home and the outstanding balance on your mortgage.
Using it for missed payments: You can use a home equity loan to pay off your missed mortgage payments in one lump sum. This can help bring your mortgage current and prevent further negative consequences.
Considerations: Keep in mind that a home equity loan adds a new debt obligation secured by your home. Fail to repay the loan could result in foreclosure.
Debt Consolidation:
How it works: Debt consolidation involves combining multiple debts into a single loan with a lower interest rate. This can streamline your finances and lower your monthly payments.
Using it for missed payments: You can use a debt consolidation loan to pay off your missed mortgage payments along with other outstanding debts. By consolidating your debts, you may be able to reduce your overall monthly payments and better manage your finances.
Considerations: Be sure to carefully review the terms and conditions of the consolidation loan, including the interest rate and repayment terms. Additionally, consolidating unsecured debts (such as credit card debt) into a secured loan (such as a home equity loan) could put your home at risk if you’re unable to make payments.
Refinancing:
How it works: Refinancing involves replacing your existing mortgage with a new loan, typically with more favorable terms. This can include a lower interest rate, longer repayment term, or switching from an adjustable-rate to a fixed-rate mortgage.
Using it for missed payments: When refinancing, you can include the missed payments in the new loan amount. This allows you to catch up on missed payments and start fresh with a new mortgage.
Considerations: Refinancing requires meeting eligibility criteria, such as having sufficient equity in your home and a good credit score. Additionally, refinancing involves closing costs and fees, so it’s essential to consider whether the potential savings outweigh these costs.
FAQ’s on Missed Mortgage Payments
What is the threshold for missed mortgage payments leading to foreclosure in Canada?
In Canada, the number of missed mortgage payments that can lead to foreclosure varies depending on your mortgage contract, lender policies, and provincial laws. Generally, most lenders take action after two or more missed payments, but even a single missed payment can trigger warning letters or collection calls. Foreclosure doesn’t usually happen right away, but repeated missed mortgage payments dramatically increase your risk.
Will missing a mortgage payment affect my credit score in Canada?
Yes, even one missed mortgage payment can negatively impact your credit score. Mortgage lenders typically report late payments to credit bureaus if you’re 30 days past due. This can make it harder to secure future financing. If you’re behind, TurnedAway.ca offers fast-track solutions designed to help you recover from missed mortgage payments and rebuild your credit.
What if I’m unable to catch up on missed mortgage payments?
If you’re unable to catch up on your missed mortgage payments, there are still options available. Loan forbearance, refinancing, home equity loans, or debt consolidation may allow you to resolve the arrears and avoid legal action. At TurnedAway.ca, we help clients in arrears every day access their home equity to stop the cycle of missed payments and protect their property.
How many missed mortgage payments before the bank takes legal action?
Most lenders will begin serious collection action after 2 or 3 missed mortgage payments. This can include sending a demand letter, starting foreclosure proceedings, or initiating a power of sale. Some lenders may be more aggressive, especially if you’ve defaulted before. Don’t wait for legal action—speak with a mortgage expert at TurnedAway.ca before your situation escalates.
Can I refinance if I have missed mortgage payments?
Yes, you may still be able to refinance—even with missed mortgage payments—as long as you have enough equity in your home. Traditional banks may say no, but alternative lenders and private lenders often approve borrowers who are in arrears. TurnedAway.ca has access to one of the largest pools of lenders in Canada and can help you refinance, catch up on arrears, and stop foreclosure.
Do missed mortgage payments show up on my credit report right away?
Typically, missed mortgage payments are reported to credit bureaus after 30 days past due. If you catch up quickly, you may avoid long-term credit damage. However, after 60 or 90 days, lenders may report additional derogatory marks or begin legal action. That’s why it’s crucial to address any missed mortgage payment immediately.
Can I use a home equity loan to cover missed mortgage payments?
Absolutely. A home equity loan is one of the most effective tools for catching up on missed mortgage payments. You can use the funds to bring your mortgage current, stop late fees, and prevent foreclosure. Even if your credit is bruised, TurnedAway.ca can help you access your equity fast.
What happens after 90 days of missed mortgage payments in Canada?
After 90 days of missed mortgage payments, most lenders classify your loan as seriously delinquent. At this point, you may receive a formal notice of default or be served with a statement of claim. This is often the final warning before foreclosure proceedings begin. Contact TurnedAway.ca immediately if you’re 60+ days behind—we may still be able to stop the process.
Can I get help with missed mortgage payments if I’ve already received a foreclosure notice?
Yes, even if you’ve received a foreclosure notice, it may not be too late. Many homeowners with missed mortgage payments are able to stop foreclosure by refinancing, negotiating a repayment plan, or getting a second mortgage. At TurnedAway.ca, we prioritize urgent cases and can often secure funding within 24–48 hours.
Is there a government program in Canada for missed mortgage payments?
While there’s no single nationwide program for missed mortgage payments, you may be eligible for relief through your lender or provincial programs. However, these options can be limited or slow to access. TurnedAway.ca offers faster, private-sector alternatives that don’t require perfect credit or long wait times.
Don’t Let Missed Mortgage Payments Spiral Out of Control
Falling behind on your mortgage can happen to anyone. Whether it’s one missed mortgage payment or several, what matters most is how you respond. Ignoring the problem can lead to credit damage, legal action, or even foreclosure—but taking action today can put you back on stable ground tomorrow.
At TurnedAway.ca, we specialize in helping homeowners across Canada recover from missed mortgage payments, no matter how far behind they are. From home equity loans and debt consolidation to refinancing options that roll arrears into a new mortgage, our team works fast to find the solution that fits your financial reality—not just your credit score.
You’re not alone, and you’re not out of options.
👉 Apply now to start the process online, or book a free consultation with a mortgage specialist who understands the urgency and can help you move forward—before the next payment is missed.
