Missed payments, arrears, and what a lender can actually do about them. Ontario and Alberta take different routes, and the time you have depends on which province you are in and how early you act.
Pekoe Mortgages is licensed in Ontario (FSRA #13321) and Alberta (RECA). This stage page routes you to the answer. It is general information, not legal advice.
How much time you have, and whether you still have options. Options exist while a mortgage is current, shrink once it is in arrears, and narrow sharply once enforcement starts.
Speak to a lawyer early. This page describes mechanisms, and nothing on it tells you what will happen in your specific situation.
| Step | Who does it | What it produces |
|---|---|---|
| Contact your lender and your broker before a payment is missed | You | The widest set of options you will ever have |
| Lender applies arrears interest and contacts you | Lender | A growing balance and a formal record |
| Lender issues formal notice | Lender | In Ontario a notice of sale, in Alberta a court process |
| Get legal advice | You, with a lawyer | Your actual position, which depends on the documents |
| Refinance, sell, or defend | You and your advisers | An outcome chosen rather than imposed |
The first call, not the last. Enforcement is a legal process and the deadlines in it are real.
Entitled to enforce under the mortgage, and often willing to discuss an arrangement before it does.
Able to tell you quickly whether refinancing is realistic, including through a private lender.
Alberta uses judicial foreclosure, so the process runs through the court rather than privately.
| Ontario | Alberta | |
|---|---|---|
| Usual route | Power of sale | Judicial foreclosure |
| Runs through the court | Not usually | Yes |
| Formal notice | Notice of sale under the mortgage | Court filed proceedings |
| Shortfall after sale | The borrower can be pursued | Restricted on a conventional mortgage, with exclusions |
| Document | Why it matters |
|---|---|
| Any notice or correspondence from the lender | It sets out what has been commenced and when |
| Your mortgage and commitment | Contains the default and enforcement terms being relied on |
| A current payout statement | Shows arrears, interest and fees already added |
| Property tax status | Arrears have priority over a mortgage |
The two routes compared. Power of sale against foreclosure.
Ontario. How power of sale works, the timeline, the notice of sale, and how to stop one.
Alberta. How foreclosure works, the timeline, how to stop one, and the recourse rules.
What it costs. Penalty interest on arrears and a shortfall lawsuit after sale.
That depends on your mortgage contract and your lender’s practice rather than a fixed number. Contact them before the first missed payment, not after the third.
Power of sale is the usual Ontario route and does not normally run through the court. Alberta uses judicial foreclosure, which does.
In Ontario a borrower can be pursued for a shortfall. Alberta restricts this on a conventional mortgage, with important exclusions. Ask a lawyer about your specific mortgage.
Often yes, by bringing the arrears current, refinancing, or selling before completion. How long you have depends on the province and the stage reached.
Sometimes, where there is enough equity. It buys time at a higher cost, so it is a bridge to a plan rather than the plan itself.
Yes. Municipal tax arrears rank ahead of a mortgage, so they affect what a lender or buyer is willing to do.
Selling on your own terms usually produces a better outcome than an enforced sale, but it depends on equity and timing. Get legal advice before deciding.
A lawyer, and your broker. The lawyer tells you where you stand legally, and the broker tells you quickly whether refinancing is realistic.
Pekoe Mortgages is a licensed brokerage in Ontario (FSRA #13321) and Alberta (RECA). This page is general information, not financial or legal advice, and does not create a broker and client relationship.