What happens in Ontario if I miss a mortgage payment?

Missing a single mortgage payment is not an immediate crisis, but it does trigger a process. Most lenders will contact you quickly — often by phone or letter — and may apply a late fee. Your credit score will likely be affected if the payment remains unpaid past a reporting cycle.

If payments continue to be missed, the lender may declare the mortgage in default. Under Ontario law, a lender can pursue power of sale or foreclosure after a default, though there are notice requirements and a redemption period during which you can catch up on arrears. Power of sale is the more common remedy in Ontario and allows the lender to sell the property to recover the outstanding debt.

The key is to contact your lender as early as possible if you anticipate difficulty. Most institutional lenders have hardship programs that allow for deferred payments, temporary interest-only arrangements, or loan modifications. Acting early gives you the most options. If your situation is serious, speak with a lawyer and consider contacting CMHC or a credit counsellor who can help you understand your options before a formal default process begins.