Missing a mortgage payment in Toronto is one of those moments that can make your stomach drop.
And the worst part is this: most people don’t miss a payment because they’re irresponsible — they miss it because life happens.
A layoff. A slow month in business. A separation. A surprise tax bill. A renter stops paying. A medical expense. A renovation that went sideways.
If you’re here because you missed a payment (or you’re about to), let me give you the truth:
✅ You’re not alone.
✅ You’re not “done.”
✅ And you still have options — especially if you have equity in your home.
This guide walks you through exactly what happens next and what to do before things snowball.
First: Missing One Mortgage Payment Doesn’t Mean You Lose Your House
In Toronto, missing a payment does not automatically mean foreclosure the next day.
But what does happen is the clock starts running.
The sooner you act, the more choices you have.
What Usually Happens After You Miss a Mortgage Payment in Toronto
Here’s the typical timeline:
1) You get a missed payment notice
Some lenders call first. Some send a letter. Some do both.
If it’s your first missed payment, it’s often treated as a warning.
2) You may be charged a late payment fee
Depending on your lender and mortgage terms, you could see:
late fees
interest adjustments
admin charges
3) Your lender may report it to your credit
Not always immediately, but missed payments can hurt your score if the lender reports it.
4) If you miss more payments, it becomes mortgage arrears
Mortgage arrears is the term for falling behind and not catching up.
This is where things get serious — because your lender’s next step is to protect their position.
The Real Risk: A Second Missed Payment
Missing one payment is bad.
Missing two payments is where lenders start shifting from “customer service” to “collections mode.”
At that stage, you may begin getting:
more frequent calls
formal notices
demand letters
legal action warnings
Can Your Lender Start Power of Sale in Ontario?
Yes — Ontario lenders can begin the legal process known as power of sale if mortgage arrears continue.
Power of sale is the process where the lender sells the property to recover the debt.
Most people never think it will get there… until it does.
And in Toronto, once power of sale begins, the stress gets real:
you lose control of the timeline
you lose control of negotiations
you risk selling below market
your costs can increase quickly
That’s why it’s smarter to act early while you still have leverage.
The #1 Mistake Toronto Homeowners Make After Missing a Payment
They wait.
They assume:
“I’ll catch up next month.”
And sometimes they do.
But if you’ve missed a payment because money is tight, the next month often comes with:
more bills
the same income problem
more pressure
The problem isn’t the mortgage — it’s that you need a plan that stabilizes the situation before it spirals.
What You Should Do Immediately If You Missed a Mortgage Payment in Toronto
Here are the smartest moves you can make right now:
✅ 1) Don’t ignore your lender
Ignoring them doesn’t stop the process — it speeds it up.
✅ 2) Get the exact mortgage arrears amount
Ask for the full breakdown:
missed payment amount
any late fees
interest owed
reinstatement amount (if applicable)
✅ 3) Identify what caused the missed payment
This matters because the solution depends on the cause.
Example:
short-term cash crunch = short-term solution
income drop = longer-term restructure
separation = refinance / buyout strategy
CRA arrears = consolidation plan
✅ 4) Protect your credit if possible
Even one missed payment can cause damage, but getting back on track quickly helps reduce long-term impact.
✅ 5) Don’t take expensive unsecured debt out of panic
Credit cards, payday loans, and high-interest loans are one of the fastest ways to dig a deeper hole.
If you own property in Toronto, you often have a better option.
Your Best Option If You Own Property: Use Equity to Fix the Problem
This is the part most people don’t realize:
Even if your income is messy, your credit isn’t perfect, or the bank is being strict…
Toronto real estate equity can solve a lot of problems quickly.
That’s where private lending comes in.
How Private Mortgage Lenders Help After Missed Payments
A private mortgage or second mortgage can be used to:
pay off mortgage arrears
stop the power of sale process
consolidate debt (so you can breathe again)
create a clean 3–12 month runway
keep your home while you rebuild
The key is speed.
Because when mortgage arrears stack up, time becomes your biggest enemy.
Can I Get Approved If I Missed Mortgage Payments?
Yes — many homeowners can still get approved.
Private mortgage approvals are often based on:
✅ property value
✅ equity / loan-to-value (LTV)
✅ the location (Toronto is strong)
✅ a clear exit plan
Not just your credit score.
Why Toronto Homeowners Use Second Mortgages for Arrears
A second mortgage in Toronto can be one of the smartest tools because it lets you:
keep your existing first mortgage in place
access equity quickly
catch up arrears and stabilize cash flow
avoid selling in panic
It’s not always the perfect solution — but when used correctly, it can save the entire file.
How Lendworth Helps Toronto Homeowners in Mortgage Arrears
At Lendworth, we work with Toronto homeowners every week who are dealing with:
missed mortgage payments
arrears notices
urgent closings
refinancing problems
renewal declines from banks
financial pressure that’s building fast
We help you create a plan using real estate equity — not unrealistic “perfect borrower” standards.
✅ Private Mortgages Toronto
✅ Second Mortgages
✅ Home Equity Loans
✅ Fast Approvals based on equity
If you missed a mortgage payment and need a solution, start here:
Final Thought: Missing a Payment Is a Warning Sign — Not a Life Sentence
Missing a mortgage payment in Toronto is serious.
But it’s also fixable — especially if you act before you miss another one.
The goal isn’t just catching up.
The goal is getting back in control.
If you want help exploring options quickly, Lendworth can help.