What Comes After You Miss Your Mortgage Payment? | Antonio DiMinno


In this article, Toronto real estate lawyer, Antonio DiMinno, of DiMinno Rizzi Lawyers, provides an overview of what happens if you miss your mortgage payments.

In today’s challenging economic times of rising interest rates, many homeowners in Canada might find it hard to pay their home loans.

It’s super important to know what can happen if you can’t pay your home loan. You need to know what might come next and do things to fix the problem right away.

The good news is that you can do a few things to stop bad things from happening, like losing your home or messing up your credit score. But you need to really understand what’s going on and work closely with your professionals to keep your home safe.

what comes after you miss your mortgage payments

What are the Consequences of Missing Your Mortgage Payments?

Bad Effects on Credit Score

Another big problem of not paying your mortgage on time is that it makes your credit score worse. Your credit score is super important for lots of money things, like getting loans later, how much you have to pay as interest, and even finding a job. When you miss mortgage payments, your credit score goes down a lot, and that makes it more difficult to get good loan terms in the future.


Late Payment Fines and Charges

When you don’t make a mortgage payment on time, lenders usually add fines and charges. These costs can be different based on the mortgage deal you made, but they often range from a part of the overdue money to a set fee. These extra expenses can build up fast, making it tough on your money and even harder to catch up on the missed payments.


Danger of Losing Your Home

The scariest thing that can happen if you keep missing mortgage payments is that you might lose your home. Losing your home means the people you owe money to can take it away legally because you didn’t pay. Remember, the rules about losing homes (foreclosure) are different depending on where you live, so it’s smart to talk to legal experts who know about the rules in your area. Losing your home this way can really mess up your money situation and how you feel.

How Many Mortgage Payments Can I Miss Before Power of Sale in Ontario?

Before the lender can start the process of selling your house due to unpaid mortgage payments, it needs to let you know and give you a certain period of time to make things right. In Ontario, this timeframe is set at 37 days.

Within these 37 days, you have the opportunity to fully settle the mortgage debt and restore your good standing with the lender. According to mortgage law, the lender can’t take any further action against you until this 37 day notice period expires.

How to Prevent Missing Your Mortgage Payments?

Talking Openly with Your Lender

If you’re having money troubles that might make it hard to pay your mortgage on time, it’s really important to talk openly with your lender. Many lenders have special teams to help those who are having money problems. If you explain what’s going on, they might let you make different payment plans or think about things like changing your loan or waiting for a bit before you pay.

Lenders on many occasions will make an effort to work things out with you. That’s because it takes time and is tricky for them to sell a house if you can’t pay. Remember, the lender wants to lend money, not own houses. If you know you won’t be able to pay your mortgage, talk to your lender before you miss a payment. Be truthful and don’t be afraid to talk to the important people at the lender’s office if you need to.



If you have enough equity built up in your home, you might have a chance to make things better by refinancing. This means you talk to another lender and use their money to pay off the first loan you got for your house. Sometimes, you might even get a second loan to pay off the first one, depending on what works for you. With this new loan, you might be able to make your monthly payments smaller by taking more time to pay everything back.

Also, it’s a good idea to chat with a mortgage broker. They can look at your situation and suggest different ways to help. They might also know about money choices that your regular bank or lender doesn’t know about.


Selling Your Home

For most homeowners, this is a last resort, but is always an option. You could sell your home to pay off what you owe on the mortgage and choose to rent or downsize. If you’re planning to sell to avoid more money problems, talk to your lender about the loan. Tell them you’re thinking about selling and see if they can help you find a way out. They might have some ideas to fix things together.

How an Toronto Real Estate Lawyer Can Help

Missing your mortgage payments can lead to big problems for your money and your plans of owning a home. But, your real estate professionals can help you avoid these issues.

Before you make any moves with your property, it is important to consult with a mortgage broker and real estate lawyer. They can work with you to find the best solution for your specific situation.


Antonio DiMinno



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Disclaimer: All number figures are approximate only and may be subject to change. Like all material on this website, this is not financial, legal, or tax advice. Contact a professional for your specific situation. 

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