What to Do If You’ve Missed a Mortgage Payment in Canada?

Missed mortgage payment

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

Repay Missed Mortgage in Canada

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: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.


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.


Missing a mortgage payment can be a daunting experience, but it’s essential to address the issue promptly and proactively. By communicating with your lender, exploring repayment options, and seeking assistance from housing counseling agencies, if necessary, you can take steps to rectify the situation and avoid further financial consequences. Remember that you’re not alone, and there are resources available to help you navigate through this challenging time.

Turnedaway.ca understands the stress and uncertainty that can accompany missed mortgage payments in Canada. Our dedicated team specializes in providing compassionate support and effective solutions to help individuals facing this challenge.

FAQ on Missed Mortgage Payment

In Canada, the number of missed mortgage payments before foreclosure can vary depending on several factors, including the terms of your mortgage agreement, the policies of your lender, and provincial regulations. Generally, lenders typically initiate foreclosure proceedings after multiple missed payments, but there's no fixed number of missed payments that automatically triggers foreclosure.

Yes, missing a mortgage payment can negatively impact your credit score in Canada. But not to worry, Turnedaway.ca got your back. We offer a lifeline for those navigating the complexities of bad credit mortgages, providing tailored solutions to alleviate the burden of existing home loans.

If you're unable to catch up on missed payments, you may need to consider more significant financial options, such as loan forbearance, loan modification, or refinancing. It's essential to discuss these options with your lender to find the best solution for your situation.

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