Need Help with Missed Mortgage Payments in Ontario?

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Missing a mortgage payment can feel scary. Your home is likely your biggest asset—and the thought of losing it, damaging your credit, or falling behind on bills can cause a lot of stress. But the truth is, many Canadians miss a payment at some point, especially when unexpected things happen like job loss, illness, or rising costs.

What to Do When You Cannot Afford Your Mortgage

The first warning sign is usually a feeling—when you start worrying you won’t be able to cover next month’s payment. If you’re already behind on bills, using credit cards to stay afloat, or dipping into savings to get by, it’s a good idea to act early.

Before you officially miss a mortgage payment, contact your lender and speak with a mortgage broker. It may feel awkward, but lenders prefer early conversations over silence. They often have options to help you avoid default—especially if this is your first missed payment.

Talk to an experienced mortgage broker so they can help you properly diagnose the problem, put together a plan, and find you the right solution.

What Happens If You Miss a Mortgage Payment?

If you miss your mortgage payment by a day or two, most lenders offer a short grace period—typically 5 to 15 days—where no penalty is applied. But once that grace period ends, things start to happen.

Here’s the typical timeline after a missed payment:

Day 1–15: You’re in a grace period. Your lender may remind you, but no damage is done yet.

Day 16–30: You’ll likely be charged a late payment fee—often around $25–$50.

After 30 days: Your missed payment may be reported to the credit bureaus, which can lower your credit score.

After 60–90 days: You’re considered in default. Your lender may start legal proceedings like a power of sale if no resolution is found.

Missing a single payment is not the end of the world, but it can lead to problems quickly if you don’t address it.

You don’t automatically lose your home. Most lenders will first try to work with you to get back on track.

How Many Payments Can You Miss in Ontario?

In Ontario, if you miss one payment, your lender will usually try to contact you and offer solutions—especially if it’s your first time. But if you miss two or more payments, things get more serious.

Once you're 90 days in arrears, your lender can begin legal action to recover the debt or sell your home under the power of sale process.

That said, every lender has its own timeline. Some may act sooner. Others may give you more time if you’ve been a long-time customer in good standing. The key is communication. If you go silent, the lender assumes the worst and moves forward with enforcement.

Can You Refinance to Catch Up on Missed Payments?

If you’re currently behind on your mortgage payments—meaning you’re still in arrears—you won’t be able to refinance through a traditional lender or a B lender. These lenders require your mortgage to be in good standing, with no missed payments in the last 12 months. Even one missed payment can cause your application to be denied, especially if the account is still overdue.

When you’re behind, your only real option is to work with a mortgage broker who can access private lenders. Private lenders focus primarily on the equity in your home—not your credit or income—and they’re willing to step in when banks and B lenders won’t. In this case, a private mortgage (usually in second position) is used to:

Pay off the arrears on your existing mortgage

Stop any legal action (such as power of sale)

Bring your mortgage back into good standing

Once you're caught up and your payment history is clean again, your broker can help you refinance back into a better mortgage with a B lender or traditional bank after 12 months of on-time payments.

Can you refinance with previously missed payments?

If your mortgage is currently in good standing, but you had missed payments earlier, you may still be able to refinance—though your options may be limited, especially with traditional banks. A broker can help you assess which lenders will consider your application based on how recent the missed payments were.

What to Do if You Miss a Mortgage Payment

If you’ve already missed a payment, don’t panic. The worst thing you can do is ignore it. Taking quick action can limit the damage and even fix the situation before it gets worse.

1. Contact your lender right away

Explain your situation honestly. Whether it was a one-time issue or the start of a longer struggle, lenders are more likely to help if you show you’re willing to communicate.

You might be able to:

Make a partial payment

Set up a catch-up plan

Skip a payment (if your mortgage allows it)

2. Speak with a mortgage broker

A broker can give you options your lender might not offer, like refinancing through an alternative lender or setting up a second mortgage to catch up.

3. Review your budget

Look closely at your income and expenses. Is there something temporary going on, or do you need a full financial reset? Reducing your expenses—even temporarily—can free up money for housing.

4. Don’t fall behind again

Try to get ahead of the next payment. Missing more than one payment puts you at higher risk of legal action, and it gets harder to fix as time goes on.

The Power of Sale Process in Canada Explained

In Ontario and most provinces, when you default on a mortgage, the lender has the legal right to take action. The most common method is called power of sale.

Here’s how it works:

Default notice

Once you're behind by 2–3 months, your lender may send a formal Notice of Default or a Demand Letter. This gives you a final chance to catch up.

Redemption period

You’re usually given about 30 days to bring the mortgage back into good standing by paying off the missed payments, interest, and penalties.

Statement of Claim or Notice of Sale

If you don’t catch up in time, the lender can move forward and file a Notice of Sale under the power of sale laws in Ontario. This means they are legally allowed to list and sell your property.

Home is sold

The lender hires a real estate agent and sells your home, often below market value. Once the home is sold, the lender repays itself from the sale proceeds. If there’s money left over, it goes to you. If the sale doesn’t cover what you owe, you may still be responsible for the shortfall.

Power of sale is faster and cheaper than foreclosure, and it’s the default legal process in Ontario. It can take as little as 2 to 3 months from the notice to the sale of your home.

Can You Skip or Defer Mortgage Payments in Canada?

Some mortgage lenders in Canada offer options to skip a payment—but it depends on your mortgage contract.

For example, if your mortgage is with a big bank like RBC, TD, or Scotiabank, you might be allowed to skip one monthly payment a year if your account is in good standing. These are sometimes called “mortgage forbearance” or “payment deferrals.”

But this option isn’t automatic. You have to apply in advance—not after you’ve already missed a payment.

During COVID-19, many lenders offered temporary deferrals for struggling borrowers. While those emergency programs have mostly ended, some lenders still offer deferral programs in hardship cases.

Keep in mind: Skipping a payment doesn’t erase it. It just gets added to your loan balance, and interest continues to accrue. It’s a short-term solution, not a fix.

If you know you won’t be able to make a payment, call your lender before the due date. They may allow a skip or set up a payment plan to catch up gradually.

Will Missed Mortgage Payments Hurt Your Credit?

Yes—missing a mortgage payment can hurt your credit score, especially if it’s more than 30 days late.

Under 30 days late: Not usually reported to credit bureaus.

Over 30 days late: Your lender can report it as a missed payment, which appears on your credit report for up to 6 years.

Multiple missed payments: The more you miss, the worse it gets. Your score can drop significantly, making it harder to get loans, credit cards, or even rent an apartment.

Even if you eventually catch up, the record of late payments stays on your file.

That said, one late payment won’t ruin your credit forever. If you fix it quickly and stay on track, your score can bounce back within a few months to a year.