What options do I have to deal with mortgage arrears before my lender takes action in Ontario?

If you fall behind on mortgage payments, acting early gives you the most options. Lenders — particularly institutional ones — generally prefer to work with borrowers rather than pursue power of sale, which is costly and time-consuming for them as well. There are several paths to address arrears before enforcement proceedings begin.

The most direct option is contacting your lender's mortgage assistance team. Many banks and larger lenders have dedicated programs for financial hardship that can allow payment deferrals, temporarily reduced payments, or capitalization of arrears (adding the missed amounts to the mortgage balance). These programs are not guaranteed, but they exist and lenders have discretion to use them.

Refinancing with another lender can also cure arrears, though qualification can be difficult when you are already in default. A private lender might bridge the gap, though at higher cost. Selling the property voluntarily is another option — if there is equity, you may recover funds and clear the mortgage entirely. In some cases, a consumer proposal or bankruptcy filing may affect the lender's ability to proceed immediately, though these options have serious long-term consequences and require legal and financial advice. Speaking with a lawyer and a mortgage broker as soon as arrears develop gives you the clearest picture of available options.