What happens if you miss a mortgage payment in Canada, and what help to ask for

The FCAC says a missed payment counts as mortgage default. The lender can legally recover the amount owed, and that could eventually lead to a forced sale of your home. The exact steps depend on your mortgage agreement and your province, so read your agreement. We did not read the provincial rules on power of sale or foreclosure, so we do not describe them.

• Watch for early signs of default and contact you.
• Offer relief that fits your situation.
• Explain costs in clear terms before you agree.
• Get your express consent to any change.
• Treat you fairly and offer the same relief as others in similar situations.

This is the FCAC's guidance for federally regulated lenders. Check whether your lender is federally regulated.

• Waived prepayment penalties for a lump sum paid to avoid negative amortization, or when you sell your main home.
• Temporarily waived fees or costs.
• A limited period with no interest charged on unpaid interest, where relief leads to negative amortization.
• A longer amortization. The FCAC warns: think twice before extending it to lower your payments.
• Agreed missed payments, which should not be reported to credit bureaus.
• Guidance on selling your home if the strain is severe.
• Renewal terms that suit your situation.

• Contact your lender as soon as you expect trouble.
• Ask about relief by phone, online or in person.
• Use the government's Mortgage Calculator to estimate payments and interest costs.
• Get advice from trustworthy sources. Lenders are expected to point you to these at no cost.

• Credit counselling by province
• Mortgage renewal in Canada
• Mortgage prepayment penalty
• Consumer proposal hub