Falling behind on your mortgage or debt? You have more options than you think.
Missed payments, growing credit card balances, a bank that said no, or a renewal you cannot afford. The earlier you act, the more choices you have. This guide explains them without judgment.
You've started an application.
Saves as you go · No credit check · A licensed mortgage professional follows up
How lenders look at struggling with payments or debt borrowers
1Lenders can start formal steps after missed payments, so contact your lender or a mortgage professional early. Waiting narrows your options.
2Common ways to stabilise include restructuring your mortgage, consolidating high-interest debt, a short-term private loan while your finances recover, or selling on your own terms.
3If your bank has declined you, alternative and private lenders look at equity and your overall situation, not only your credit score.
4Sometimes the right answer is outside the mortgage world, such as a consumer proposal. A licensed insolvency trustee can explain that option, and a lawyer can advise on your rights.
Get ready
What lenders will ask you for
Your latest mortgage statement
Any notices from your lender, the municipality or a condo corporation (letters, Notice of Sale, tax arrears)
A list of your debts: balance, rate and payment
Proof of income: recent pay stubs, T4s or Notices of Assessment
Property tax bill and proof of home insurance
Your options
Which kind of lender fits you
Option 1
Talk to your current lender
Ask about a payment plan, deferral or amortization change. This is free, and lenders prefer a plan to default.
Option 2
Consolidate and refinance
If you have equity and can qualify, roll arrears and high-interest debt into one lower payment.
Option 3
Private or B lender (short term)
A bridge while income or credit recovers, with a plan to move to a regular lender. Higher rate and fees, so it should have an exit plan.
Option 4
Sell on your own terms
Sometimes the best outcome is selling before a lender forces it, so you keep more of your equity.
Option 5
Debt relief outside the mortgage
A consumer proposal or credit counselling can help when debts are too large to refinance. A licensed insolvency trustee can explain these.
Avoid these
Common mistakes
!Ignoring letters from your lender or the municipality.
!Waiting until a Notice of Sale or Statement of Claim arrives.
!Taking a high-cost loan without a plan to exit it.
!Hiding the full picture from the person helping you. They can only find the right option when they see everything.
Take action
Your first steps
1Gather every letter and notice you have received.
2List your debts and your monthly income and expenses.
3Check your mortgage statement for the balance and any arrears.
4Do not ignore deadlines. If you received a legal notice, speak to a lawyer promptly.
5Start a private intake so a mortgage professional can review your options with you.
The intake
What your application will ask
Your online application goes one topic at a time and saves every answer and document as you go, so you can stop and come back. It never runs a credit check, and a licensed mortgage professional reviews it and follows up.
For struggling with payments or debt borrowers
What is going on: missed mortgage payments, tax arrears, high debt, a bank decline, or a renewal you cannot afford?
Have you received any notices from your lender, the city or a condo corporation?
What is your estimated home value and current mortgage balance?
Roughly how far behind are you, and on what?
What is your current household income and has it changed recently?
What other debts do you have, with balances and payments?
What outcome are you hoping for: keep the home, lower your payments, or exit on good terms?
Plus the basics everyone answers 13
Your full name, email, mobile number and the best time to call.
The city you live in, and whether you are a Canadian citizen, permanent resident, or other status.
Are you applying alone or with someone else? If with someone, their name and how you are related.
Your goal: buy, refinance, renew, take out equity, or consolidate debt?
The property type (house, condo, multi-unit) and the city it is in.
Will you live in it, rent it out, or both?
The purchase price or estimated value, and your target closing or renewal date.
Your down payment or available equity, and where it comes from (savings, RRSP/FHSA, a gift, sale of another property).
Your approximate yearly household income before tax.
Your monthly debt payments: car loans, credit cards, lines of credit, student loans, support payments.
Your own estimate of your credit score: excellent, good, fair, poor, or not sure.
In the last 7 years, any bankruptcy, consumer proposal, collections, or missed mortgage payments?
May the broker contact you? (A credit check is only ever run later, with your separate written consent.)
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Answers
Questions people ask
What happens if I miss mortgage payments?
Your lender will contact you and can start formal collection steps if the arrears continue. The timeline and rules are set by law and your mortgage contract, so speak with your lender and a lawyer early.
Can I get a mortgage if my bank declined me?
Often yes. B and private lenders can focus on your equity and overall picture. They cost more, so it should be a plan, not a permanent fix.
Can I roll missed payments and debt into a new mortgage?
If you have equity and a lender will approve you, a refinance can pay off arrears and high-interest debts. A broker can check what is possible.
I cannot afford my renewal. What can I do?
Options include switching lenders, extending the amortization, consolidating debt, or a short-term solution. Start before the renewal date.
Is this confidential?
The intake is private and without obligation. A mortgage professional will contact you only if you say they may.
Does starting the intake affect my credit?
No. The intake is just questions. A credit check is only done later, with your separate permission.
General information, not mortgage, legal or tax advice. Lender rules change and every application is reviewed on its own facts. Your application and documents are stored privately and go only to a licensed mortgage professional at Top Mortgages Inc; they are never sold, and no credit check is run without your separate written consent.