How Many Missed Mortgage Payments Before Foreclosure in Canada?
“How many missed mortgage payments before foreclosure in Canada” is quickly becoming one of the most searched homeowner concerns—and for good reason. As interest rates and inflation continue to strain Canadian budgets, more people are falling behind on mortgage payments, unsure of the consequences or what steps to take.
In Canada, foreclosure laws differ by province, but most lenders won’t start the legal process after just one late payment. Foreclosure is a process, not a one-time event. And the good news is: homeowners almost always have options.
This in-depth guide explains:
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What happens when you have missed mortgage payments
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When foreclosure proceedings begin
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How to stop the process—even if you’ve already received legal notices
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Real case studies from Canadian homeowners who recovered
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Government and broker resources to help you today
Introduction: Why Missed Mortgage Payments Matter
More than 5% of Canadian homeowners face mortgage payment difficulties each year. While one missed payment may seem minor, missed mortgage payments can have a ripple effect—damaging credit, compounding late fees, and triggering legal action if not resolved quickly.
The key is timing. The sooner you act, the more options you have to stop foreclosure, protect your credit, and keep your home.
What Happens When You Miss a Mortgage Payment?
First Missed Payment
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Late Fee: Your lender will typically charge a fee as outlined in your mortgage contract.
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Reminder Call or Email: Expect a courtesy call or letter requesting you catch up.
At this stage, a single missed mortgage payment is not reported to the credit bureaus immediately if resolved quickly.
Multiple Missed Payments (60–90 Days)
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Credit Bureau Reporting: Once you reach 30+ days overdue, missed payments can begin to affect your credit.
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Demand Letter: After two or more missed mortgage payments, your lender may issue a formal notice demanding repayment of arrears within a set timeframe.
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Pre-Foreclosure Warning: Communication becomes more formal and persistent.
How Many Missed Mortgage Payments Before Foreclosure in Canada?
Typically, foreclosure proceedings start after three consecutive missed mortgage payments, but this varies depending on your province and lender. Some lenders are flexible, while others may act more aggressively.
Provincial Differences
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Ontario: After 90 days of arrears, a Notice of Sale or Statement of Claim can be issued. Homeowners usually get a 35–45 day redemption period.
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British Columbia: The lender files a petition with the Supreme Court after several missed payments. The borrower may still redeem the mortgage.
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Alberta: The redemption period is often built into the foreclosure timeline, giving homeowners 3–6 months to catch up.
In all provinces, communication is key. Lenders are more likely to delay legal action if you’re proactively seeking solutions.
Stages of the Foreclosure Process in Canada
Foreclosure isn’t immediate. It unfolds in several stages, and you can intervene at most points to halt it.
1. Missed Mortgage Payments and Notices
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First missed payment triggers a reminder
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Second or third missed payment typically leads to a demand letter or Notice of Default
2. Legal Filing
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Lender files a Statement of Claim or Petition for Foreclosure, depending on the province
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You’ll receive court documents outlining the arrears and timeline
3. Redemption Period
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You have a limited window (usually 30–60 days) to pay the arrears and stop the foreclosure
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This is your best opportunity to refinance, pay off arrears, or sell the home
4. Court Judgment and Sale
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If no payment is made, the lender gets permission to sell the property
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In Ontario, this is a Power of Sale
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In Western provinces, it may be a Judicial Sale or full foreclosure
How to Prevent Foreclosure After Missed Payments
You may feel powerless after falling behind, but foreclosure is avoidable in most cases. Here’s what you can do:
✅ Talk to Your Lender Immediately
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Request a payment deferral
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Ask for a loan modification to lower your payments
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Negotiate a forbearance plan
Most lenders would rather work with you than go through a costly legal process.
🔁 Refinance or Use Your Home Equity
Refinancing is often the fastest way to deal with missed mortgage payments—especially if you have equity in your home.
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Home Equity Loans: Access funds to pay off arrears and legal costs
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Second Mortgages: Bridge the gap while you recover from temporary hardship
👉 Apply Now with TurnedAway.ca to find out what you qualify for based on your equity.
🏛️ Seek Government Support
Programs include:
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Mortgage Deferral Programs (offered during crisis events)
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Provincial Housing Grants for low-income or vulnerable homeowners
Explore Other Solutions
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Sell the Property: If your equity is strong, selling early allows you to avoid foreclosure and preserve your credit.
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Debt Consolidation: Bundle high-interest debts into one manageable payment
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Consumer Proposal or Bankruptcy: May help eliminate unsecured debt, making it easier to catch up on your mortgage
Common Mistakes to Avoid
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Ignoring Notices: Silence makes foreclosure move faster
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Waiting Too Long: Lenders are more flexible early in the process
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Not Getting Help: Working with a broker or legal expert can make all the difference
Real-Life Case Studies
📍 Ontario Family Recovers with Home Equity Loan
A couple in Toronto missed 3 payments after maternity leave and medical leave created financial strain. Facing foreclosure, they worked with TurnedAway.ca to secure a home equity loan. Within 48 hours, they caught up on arrears, stopped the power of sale, and rebuilt their credit over 12 months.
📍 Alberta Homeowner Uses Second Mortgage to Stop Foreclosure
A laid-off oil worker in Calgary had missed 4 payments. The lender began legal proceedings. With 40% equity in the home, TurnedAway.ca arranged a second mortgage in less than 5 days. The arrears and legal fees were paid, and the foreclosure was halted.
📍 B.C. Couple Negotiates Forbearance After Layoff
Both spouses lost work during the pandemic and missed 2 payments. Instead of panicking, they contacted their lender and negotiated a forbearance plan, which deferred payments for 3 months. They later refinanced with a better rate and avoided foreclosure altogether.
Frequently Asked Questions About Missed Mortgage Payments
1. How many missed mortgage payments before foreclosure in Canada?
Most lenders initiate foreclosure after three missed payments, but this depends on your lender and province.
2. Can a single missed payment trigger foreclosure?
No. One missed mortgage payment typically results in a late fee, not legal action. But repeated non-payment leads to escalation.
3. How long do I have before legal action begins?
Usually 90 days of arrears. You may receive a demand letter or Notice of Sale before this.
4. What is the difference between power of sale and foreclosure?
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Power of Sale (e.g. Ontario): Property is sold without court approval
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Foreclosure (e.g. BC): Court orders transfer of title to lender
5. Will missed payments affect my ability to get another mortgage?
Yes. Missed mortgage payments appear on your credit report and can delay future approvals, even after resolution.
6. Can I get a home equity loan with bad credit?
Yes, if you have sufficient equity. Many private lenders focus on the home’s value, not just your credit score.
7. Are missed payments reported to credit bureaus right away?
Usually after 30 days. Catching up quickly can prevent long-term damage.
8. What is a demand letter?
A formal letter from your lender requiring payment of arrears within a specific time (usually 10–30 days) to avoid further action.
9. Can I sell my house after foreclosure proceedings have started?
Yes. As long as the property hasn’t yet been sold by the lender, you can list it, pay the arrears, and keep the remaining equity.
10. Does the foreclosure process stop if I pay the arrears?
In most cases, yes. Once you bring your mortgage current—including arrears and fees—the lender is legally required to halt the process.
Final Thoughts
Missed mortgage payments are stressful—but they don’t have to be the end of your homeownership journey. Whether you’re one payment behind or already received a legal notice, you have options.
✅ Talk to your lender
✅ Explore equity-based financing
✅ Consider selling or refinancing
✅ Work with a mortgage expert who knows the system
👉 Explore your options with TurnedAway.ca today. Whether you need a second mortgage, home equity loan, or just advice—we’ll help you find the right path forward.
