What to Do If You Can't Make Your Mortgage Payment

Homeowner reviewing mortgage and household payment documents at a kitchen table

Missing a mortgage payment can happen after a job change, illness, separation, unexpected repair, higher renewal payment, or rising credit card balances. It does not mean you have failed. It means action is required.

Do not wait for the problem to resolve by itself.

Early contact may provide more options than waiting until mortgage arrears have grown or formal legal notices have been issued. Contact your lender, mortgage professional, credit counsellor, or another appropriate licensed professional as soon as you know a payment may be missed.

This information applies across Canada. Exact lender procedures, legal timelines, fees, and remedies vary by province, lender, mortgage contract, and borrower circumstances.

First: Confirm Your Current Status

Identify which situation applies:

  • You are concerned about an upcoming payment.
  • You have missed one mortgage payment.
  • You have missed multiple payments.
  • Your lender declined a renewal or refinance.
  • Your renewal payment increased beyond your budget.
  • Credit card or other unsecured debt is reducing your available cash flow.
  • You are considering a private lender because you do not qualify conventionally.
  • You have received a demand letter, legal notice, or notice connected with power of sale or foreclosure.

Record the following information:

  • Mortgage lender and account contact information.
  • Mortgage balance.
  • Current payment amount and payment frequency.
  • Interest rate and maturity or renewal date.
  • Number of missed or pending payments.
  • Outstanding property taxes, condo fees, or secured debts.
  • Current income and monthly essential expenses.
  • Credit card, line of credit, and other debt balances.
  • Available savings and home equity.

Use current documents. Do not estimate when exact figures are available.

What Happens When You Miss a Mortgage Payment?

A missed scheduled payment generally places the mortgage into arrears. The exact consequences depend on your mortgage agreement and lender policy.

Possible fees and interest

Your lender may apply:

  • Late-payment fees.
  • Non-sufficient funds fees.
  • Additional interest on overdue amounts.
  • Collection or administrative charges.
  • Legal costs if the matter progresses.

Unpaid amounts can continue accumulating. A single missed payment can become a larger balance if it is not addressed.

Possible credit bureau reporting

A missed payment may be reported to Equifax, TransUnion, or another credit reporting agency. Reporting practices and timing vary.

An agreed payment-relief arrangement may be treated differently from an unapproved missed payment. Ask the lender how the arrangement will be reported. Request the terms in writing. Keep copies of emails, letters, and call records.

A lower credit score can affect future mortgage qualification, interest rates, insurance requirements, and access to other credit.

Possible lender contact

The lender may contact you by phone, email, or mail. Respond to the lender. Ignoring calls or letters does not stop the arrears from increasing.

The lender may request:

  • An explanation of the financial difficulty.
  • Proof of income.
  • Bank statements.
  • A household budget.
  • A list of debts and assets.
  • A proposed payment arrangement.

Possible legal action

If arrears continue, the lender may take further steps under the mortgage contract and applicable provincial law. These steps can include a demand for payment, legal proceedings, power of sale, foreclosure, or another remedy.

Foreclosure or power of sale is generally a later step after other collection and recovery efforts have not resolved the default. It is not normally the first event after one missed payment. However, there is no universal timeline. Act immediately if you receive legal documents.

Do not assume that a lender will approve a payment pause, refinance, consolidation, or private mortgage. Approval is not automatic.

Why Acting Early Matters

Early action can:

  • Limit the growth of mortgage arrears.
  • Give the lender time to review payment-relief options.
  • Preserve more conventional financing options.
  • Provide time to organize accurate documents.
  • Reduce the risk of additional fees.
  • Support a more complete review of income, credit, equity, and debts.
  • Create time to obtain legal, credit, or insolvency advice where necessary.

Contact the lender before the payment date when possible. If the payment has already been missed, contact the lender immediately.

Use clear language:

“I am experiencing a financial difficulty and may not be able to make my mortgage payment. I want to understand the available options and the documents required.”

Do not promise a payment amount that you cannot maintain. Provide a realistic budget.

Mortgage professional and homeowner reviewing a financial plan together

Options to Consider

1. Ask the lender about payment relief

Depending on the lender and your circumstances, possible arrangements may include:

  • A temporary payment deferral.
  • A temporary payment reduction.
  • Interest-only payments for a defined period.
  • An extended amortization.
  • Capitalizing arrears into the mortgage balance.
  • A revised payment schedule.
  • A mortgage term or product change.

These options are subject to lender policy, qualification, documentation, and approval. Interest may continue to accrue. A deferral does not eliminate the amount owed. A longer amortization may reduce the regular payment while increasing total interest over time.

Obtain written confirmation of:

  • The approved relief period.
  • The payment amount.
  • The interest treatment.
  • Any fees.
  • The repayment schedule.
  • Credit bureau reporting.
  • Conditions for returning to regular payments.

2. Review refinancing or consolidation

A refinance may be one possible option when the borrower has sufficient equity, acceptable income, and a lender-approved repayment structure.

A refinance may be considered to:

  • Address mortgage arrears.
  • Restructure multiple debts.
  • Improve monthly cash flow.
  • Fund a necessary financial obligation.
  • Replace a mortgage that is approaching renewal.

Approval is not guaranteed. A refinance can increase the mortgage balance, interest cost, fees, and repayment period. Debt consolidation is not a guaranteed outcome and may not be suitable.

For many refinance structures, borrowing against home equity is generally subject to an 80% loan-to-value limit. The applicable limit depends on the product, lender, property, borrower, and underwriting rules. Home values can fluctuate, and an appraisal may be required.

If interest deductibility is being considered, tax treatment is fact-specific. Obtain confirmation from a qualified tax professional before relying on any tax result.

Review refinancing options before the renewal date whenever possible. See the refinancing information from Glenn Bauman Mortgages.

3. Consider a private lender carefully

Private lending may be considered when conventional lenders decline an application because of credit history, income structure, arrears, debt levels, property issues, or timing.

Private lending commonly involves:

  • Higher interest rates.
  • Lender and broker fees.
  • Shorter terms.
  • Renewal costs.
  • More limited payment flexibility.
  • A requirement for a documented exit plan.

An exit plan explains how the private mortgage will be repaid or replaced. It may involve improved credit, stable income, a property sale, a conventional refinance, or another documented source of funds.

Do not use a private mortgage without reviewing:

  • The total borrowing cost.
  • The term and maturity date.
  • All lender and broker fees.
  • Default provisions.
  • Renewal conditions.
  • Prepayment terms.
  • The repayment or refinance plan.

A private mortgage may provide time, but it can also increase financial risk if the exit plan is not realistic.

4. Obtain debt advice when unsecured debt is significant

If credit card debt, personal loans, tax debt, or other obligations are preventing mortgage payments, speak with a qualified credit counsellor or a licensed insolvency trustee.

Possible debt solutions depend on the debt type, income, assets, and legal circumstances. A mortgage professional does not replace a licensed insolvency trustee, credit counsellor, lawyer, or tax professional.

What Glenn Bauman Mortgages Can Do

Glenn Bauman Mortgages can help organize the mortgage-related review by:

  • Reviewing your current mortgage position.
  • Identifying the immediate payment issue.
  • Comparing available mortgage pathways where appropriate.
  • Explaining lender requirements and trade-offs.
  • Communicating with lenders and mortgage providers.
  • Organizing income, asset, debt, and property documents.
  • Reviewing renewal, refinance, and private-lending considerations.
  • Assessing whether a proposed exit plan is realistic.
  • Identifying when another licensed professional should be consulted.

There is no guarantee that payment relief, refinancing, consolidation, or private lending will be approved. Costs and compensation can vary by transaction and lender. Ask for a clear explanation of applicable fees and compensation before proceeding.

Warning Signs: Act Now

Request professional help if any of these conditions apply:

  • You expect to miss the next payment.
  • You have already missed a payment.
  • Mortgage arrears are increasing.
  • Your lender has declined your renewal.
  • Your renewal payment is not affordable.
  • You are using credit cards to pay regular household expenses.
  • You are making minimum payments on several debts.
  • You have received a demand letter or legal notice.
  • You are considering selling because a payment arrangement is not available.
  • You are considering a private lender without a written exit plan.
  • You are unsure of the mortgage balance, fees, or maturity date.

Do not wait for a notice of sale or foreclosure proceeding before requesting advice.

Speak to a Professional to Understand Your Options

Use the mortgage payment help page to request a mortgage-focused review.

Contact Glenn Bauman Mortgages:

Get the information together. Contact the lender. Request written terms. Review the full cost. Confirm the exit plan.

Get mortgage payment help

Newsletter

Get mortgage rate updates plus one practical tip in your inbox.

General Information Disclaimer

This article provides general information only. Mortgage products, rates, lender policies, qualification requirements, fees, penalties, reporting practices, and approval decisions vary by lender, transaction, province, and borrower circumstances.

This article is not legal, financial, tax, credit-counselling, or insolvency advice. Consult appropriate licensed professionals, including a licensed insolvency trustee, credit counsellor, lawyer, or tax professional where applicable.

Glenn Bauman Mortgages does not guarantee approval for payment relief, refinancing, debt consolidation, private lending, or any other mortgage solution. No option is guaranteed to prevent power of sale, foreclosure, property sale, or other lender action.

Best available rates / OAC / last updated Aug 29, 2026.

Glenn Bauman Mortgages

Glenn Bauman Mortgages logo

Glenn Bauman portrait

Email Glenn Bauman Mortgages · Visit glennbauman.com

ⓕ ◎ in

Mortgage Agent TMG FSRA Lic# M19001990