Mortgage Arrears Assistance
If you have fallen behind on your mortgage payments, you are not alone, and you are not out of options. Mortgage arrears can build quietly, and the right move early on makes all the difference.
At LendToday, we help Ontario homeowners catch up on mortgage arrears, stop a power of sale, and bring their mortgage back into good standing, even when the bank has said no.
- Ontario mortgage brokerage
- Private & alternative lenders
- Fast approvals
- Solutions for bad credit
- Free consultation
Need immediate help? Call 1-855-242-7732
What Are Mortgage Arrears?
Mortgage arrears are the unpaid mortgage payments that build up when a homeowner falls behind. When you miss a scheduled payment and the grace period passes, your mortgage is in default, and the missed amounts begin to accumulate.
It helps to keep three terms straight. A missed payment is a single payment you did not make. Default means you have broken the terms of your mortgage agreement. Arrears is the growing balance of overdue payments, interest, and fees that builds while the account stays behind. The longer arrears sit unresolved, the more it costs and the closer legal action moves.
The 30/60/90-Day Mortgage Arrears Timeline
Falling behind rarely happens all at once. In Canada, missed mortgage payments usually escalate in predictable stages, and knowing where you sit tells you how much time you have to act.
The 15-Day Grace Period
Most Canadian lenders allow a grace period of roughly 15 days after your due date. Pay within that window and you typically avoid late fees, and nothing is reported to the credit bureaus. This is your first safety net, but it is not a free pass.
30 Days Past Due
After about 30 days, your lender reports the missed payment to Equifax and TransUnion, and your credit score can drop. You are now officially in mortgage arrears. Watch out for a rolling-late situation, where every following payment is treated as late until you fully make up the one you missed.
60 Days Past Due
By 60 days, friendly reminders give way to formal demand letters. Your file often moves to the lender's collections or legal department, and legal costs can start being added to your balance. Communication becomes more frequent and more serious at this stage.
90 Days Past Due
Around 90 days, most lenders send a formal Notice of Default or demand letter and prepare to begin legal proceedings. This is the critical threshold. In Ontario, that usually means a power of sale rather than a court-supervised foreclosure. Acting before this point keeps far more options open.
| Stage | What typically happens | Your priority |
|---|---|---|
| Grace period (about 15 days) | No late fee, no credit report yet | Pay now and avoid escalation |
| 30 days late | Missed payment reported to credit bureaus | Catch up before rolling late sets in |
| 60 days late | Demand letters, file moves to collections or legal | Get professional advice immediately |
| 90 days late | Notice of Default, power of sale risk begins | Secure funds fast to stop the process |
Mortgage arrears remain uncommon in Canada. The Canadian Bankers Association reports a national arrears rate of roughly 0.22% of mortgages (three or more months past due), so lenders are well practised at working with borrowers who act early. Source: Canadian Bankers Association.
Where Are You in the Process?
Mortgage arrears move through clear stages, and each one carries a different level of urgency. Find what you have already received to understand where you stand and how quickly you need to act.
Can I Qualify If I'm Behind on My Mortgage?
Many homeowners assume that being in arrears or having bruised credit rules them out. In equity lending, the opposite is often true. The equity in your home usually matters more than your credit score, which is why we can help in situations a bank will not. We regularly work with homeowners who are:
If any of these describe your situation, it is worth a conversation. The amount of equity you hold is usually the deciding factor, not your credit history.
How Much Equity Do I Need To Stop Mortgage Arrears?
Equity is the difference between your home's value and the balances owing against it. The more equity you hold, the more flexibility you have in arranging a solution. The table below is a general guide only, and your actual options depend on your full situation, the property, and the lender.
| Equity position | Typical flexibility |
|---|---|
| 10% to 15% | Limited, but worth reviewing |
| 20% to 25% | More options open up |
| 30% or more | Strong range of solutions |
| 40% or more | Widest flexibility |
Not sure how much equity you have? Our home equity calculator gives you a quick estimate.
Power of Sale vs. Foreclosure in Canada
These two terms get used interchangeably, but they are different processes, and the difference matters for how much time you have.
In Ontario and several other provinces, lenders generally use power of sale, which does not go through the courts and moves quickly. Once a Notice of Sale is issued, you usually have a redemption period of about 35 days to bring the mortgage current by paying the arrears, accumulated interest, and the lender's legal costs. Foreclosure, by contrast, is a longer court-supervised process in which the lender seeks legal title to the property.
During the redemption period you keep the right to reinstate your mortgage, sell the home yourself, or refinance to pay out the arrears. If the home sells for less than what is owed, you may still be liable for the shortfall. The takeaway is simple: the redemption window is short, so the sooner you act, the more control you keep. If you have already received notice, our guide on how to avoid foreclosure walks through the next steps.
Warning Signs Mortgage Arrears Are Becoming Serious
Arrears tend to build alongside other financial pressure. If you recognize several of these signs, it is a good time to reach out before the situation escalates:
- Using credit cards or lines of credit to cover your mortgage payment
- Borrowing from family to stay current
- Missing more than one payment in a row
- Receiving demand letters or other legal notices
- Falling behind on property taxes at the same time
Common Reasons for Mortgage Arrears
Mortgage arrears can affect responsible homeowners for many reasons. The most common include:
- Interest rate increases on a variable rate mortgage or at renewal, where higher payments strain a budget that was previously fine.
- Financial hardship such as job loss, reduced hours, illness, or a medical emergency that makes payments hard to meet.
- Large debt obligations like mounting credit card balances, loans, or tax debt that crowd out the mortgage payment.
- Property or income changes such as separation, the loss of a second income, or a drop in home value.
How to Catch Up on Mortgage Arrears
If you have equity in your home, you usually have options, even with bruised credit or irregular income. Here are the main ways homeowners get back on track.
Home Equity Loan
A home equity loan gives you a lump sum borrowed against the equity you have built, used to clear the arrears and bring your mortgage current in one move. Approval leans on your equity, not just your credit.
Second Mortgage
A second mortgage sits behind your existing first mortgage and lets you tap your equity without touching your current rate. It is a common way to cover arrears quickly when refinancing the whole mortgage does not make sense.
Home Equity Line of Credit
A HELOC is a revolving credit line secured by your home. You draw only what you need and pay interest only on the balance you use.
Refinance Your Mortgage
Refinancing replaces your existing mortgage with a new one, letting you fold the arrears in and reset to a manageable payment.
Private or Bridge Financing
When timing is tight, a private mortgage can fund in days to pay out arrears and legal costs, stopping a power of sale, then exit to a traditional lender later.
Sell Your Home
If the payment is no longer sustainable, selling on your own terms lets you clear the mortgage and arrears and protect your remaining equity, rather than losing control to the lender.
What We Need To Help You
Getting started is simple, and a quick conversation is often enough to map out your options. To review your mortgage arrears situation, we typically ask for:
- Your current mortgage statement
- Any Notice of Sale or legal notice you have received, if applicable
- The property address
- An approximate value for your home
- Basic income details
Do not worry if you cannot put your hands on everything right away. We can begin with what you have and guide you through the rest.
Why Acting Early Protects You
Every stage you let pass costs more and removes options. Addressing mortgage arrears quickly protects three things that matter most: your home, your credit, and your money. Catching up keeps a roof over your family, limits the damage to your credit score, and avoids the NSF fees, accruing interest, and legal costs that pile onto the balance once a lender's lawyers are involved.
- Stops further late-payment reporting to the credit bureaus
- Avoids legal and power of sale costs being added to your balance
- Preserves the equity you have built in your home
- Keeps refinancing and private lending options on the table
- Reduces stress and gives you a clear plan forward
Mortgage Arrears Help Across Ontario
We work with homeowners throughout Ontario, with deep roots in Durham Region and the surrounding communities. Wherever you are in the province, we can help you review your mortgage arrears options. Our service areas include:
Oshawa · Whitby · Ajax · Bowmanville · Clarington · Toronto · Hamilton · London · Barrie · Kingston
How LendToday.ca Can Help
We help homeowners who do not fit the bank's checklist. Our team understands the pressure of mortgage arrears and works fast to find a solution that fits your situation.
Your free consultation starts with a clear assessment of your equity, your timeline, and the amount needed to bring the mortgage current. From there we tap a wide network of lenders, including private and alternative options, to arrange financing that stops the process and gets you back on track. As an FSRA-licensed brokerage, we give you straight, professional advice at every step.
In short: Mortgage arrears happen when you fall behind on your mortgage payments in Canada. Lenders typically send notices at 30, 60, and 90 days past due, and once you reach roughly 90 days the risk of power of sale becomes real. The good news is you have options at every stage, from refinancing to a home equity loan or second mortgage, and acting early gives you the most ways to catch up.
At LendToday.ca, we help homeowners across Ontario stop the clock and bring their mortgage current.
See an example: Read how a homeowner resolved mortgage arrears after an unexpected medical leave.
Mortgage Arrears FAQs
Can I lose my home if my mortgage is in arrears?
It is possible if arrears go unaddressed, but it is far from automatic. Lenders prefer to avoid power of sale because it is costly for them too. If you act quickly, there are usually ways to bring the mortgage current and stop the process.
How many missed payments before power of sale starts in Canada?
Most lenders begin formal proceedings after about three missed payments, roughly 90 days in arrears. A lender can technically act sooner, so the safest move is to seek help well before the 90-day mark.
What does it cost when my mortgage is in arrears?
Costs can include NSF fees on each missed payment, interest that keeps accruing on the overdue amount, and legal fees if the lender begins proceedings. These add up quickly, which is why catching up early saves money.
Can I refinance my home to pay off mortgage arrears?
Often, yes. Even with bruised credit or non-traditional income, there are short and long-term solutions if you have equity. Speak with one of our mortgage specialists to review your options.
What are my options if I have bad credit?
A home equity loan or a second mortgage is based mainly on your home's equity rather than your credit score, making either a common way to catch up on past-due payments.
What is the redemption period in a power of sale?
In Ontario it is generally about 35 days from the Notice of Sale. During that window you can reinstate your mortgage by paying the arrears, interest, and the lender's legal costs, which stops the sale.