What To Do If You Get Behind On Mortgage Payments?

With many Calgarians still laid off from their jobs due to the pandemic, making ends meet isn’t easy. Bills may be piling up and not enough income is rolling in. Due to this, you may be behind on your mortgage payment. However, we have options for you to avoid foreclosure during these challenging times and can help get you back on track.


Many banks and lenders are still allowing deferrals during this difficult time if you are struggling to make ends meet due to the ramifications of COVID-19. Banks have reported that 90% of people seeking mortgage deferrals during COVID-19 have been approved. By having the ability to defer, thousands of people will save money to purchase necessities.

“Together, all these facilities should improve liquidity and funding conditions for lenders, which will help businesses and households access the credit they need. It will also help Canadians benefit more from our monetary stimulus during the recovery period.” Ephraim Vecina –

Though these deferrals are incredibly helpful in uncertain times, such as this pandemic, it doesn’t come without strings. The interest added back onto the mortgage will add up and need to be paid back once the deferral period ends.

For more information on mortgage deferrals, call your bank, lender, or broker to get full details.

If you are still struggling with your mortgage due to other circumstances, we have some options for you to help get you back on your feet.

What to do when you're behind on mortgage payments


The first thing you need to do is call your Calgary mortgage broker or lender. If you start getting behind on payments don’t ignore it and assume you can catch up on your own. Assisting in times like these is part of what mortgage brokers and lenders are there for.

Since a house foreclosure is such an expensive process most lenders will be willing to work with you.


The two most common methods for helping you catch up on your mortgage payments are a Repayment Plan and Reinstatement and Forbearance.


A repayment plan is best used for a temporary setback, such as job loss or lay-off. The way it works is that the missed amount of payments is split up over a set number of months and added to your existing mortgage payment.


This process is when your broker or lender agrees to suspend your mortgage payments temporarily. You will both agree on a plan to get your account back up-to-date. However, you will be expected to make up for all of the missed payments, usually in one lump-sum amount.

This option does forgo the right to pursue foreclosure while it is in use.


Maybe things have changed for longer than you were anticipating. If this is the case, it may be worth looking into changing your mortgage’s terms to ensure that foreclosure doesn’t occur and you can stay on top of your payments.


Occasionally your broker or lender will allow you to modify the terms of your existing mortgage that is getting you in over your head. If you choose this option, your broker or lender will provide you with a better interest rate, or the length of your mortgage will be extended to lower your overall monthly payment.


To help lower monthly payments, you can see what else got rolled into your mortgage payment. Extra’s and addons can include local taxes, property insurance, and private mortgage insurance (Canada Mortgage and Housing Corp. (CMHC), needed when your down payment is less than 20% of your home’s value.) If you can get one of these lowered it can save you a substantial amount on your monthly payments.


If you cannot adjust the terms of your mortgage, refinancing may be in your best interest. Refinancing allows you to take out a new loan, one with monthly payments more suitable to your financial situation. You can then use these funds to pay off your existing mortgage and pay off the new monthly payments with ease.


If all else fails and you are still struggling to pay your mortgage on time, you may have to consider selling your home. Homeowners can make a short sale, where the lender agrees to sell the house for less than you owed to ensure that your home’s foreclosure doesn’t occur. This way, you are still left with something and can consider purchasing a smaller home for a lower price with a lower mortgage or consider renting, depending on the financial situation you are left with.

For more information on how you can get your mortgage payments back in order, contact The Mortgage Group. We are here to lend more than just mortgage advice. We want to lend a helping hand, too.