Mortgage Debt Relief in Canada

Signs you might need mortgage debt relief

Do any of these signs seem familiar? Mortgage debt can quickly become overwhelming, so it’s important to recognize the signs that you might need help. If you’re experiencing any of the following, you can book in a free consultation with Spergel to see how we can support you:

• Missed or late payments – if you are consistently missing your mortgage payments or making them late, your credit score can be negatively impacted, putting you at risk of foreclosure.
• A reduction in your income, or job loss – decreased funds can make meeting your mortgage obligations increasingly difficult.
• High debt to income ratio – if your mortgage (and other debt) is a high proportion of your total income, making mortgage payments can become stressful.
• Increasing interest rates – facing higher mortgage payments as interest rates climb? If it is likely that you will find it more challenging to make your payments, assessing your mortgage debt relief solutions could provide the relief you need.
• Lack of savings – if you do not have savings or an emergency fund to help cover your mortgage payments, you might need assistance in managing your debt.
• Threat of foreclosure – you might have received notices or be at risk of losing your home due to mortgage arrears. This is a critical sign that you need immediate debt relief, so reach out to Spergel today.

Recognizing these signs is the first step to regaining control over your mortgage, and your financial situation. Spergel’s Licensed Insolvency Trustees can offer the professional debt relief support you need. We will help you on the journey to financial freedom and peace of mind.

How Spergel can help you to gain mortgage debt relief

In Canada, there are a number of mortgage debt relief options to help homeowners like you who are struggling to make their mortgage payments. They can offer much needed financial relief, and prevent you from losing your home. If you need a substantial reduction on your debt, or complete elimination, our Licensed Insolvency Trustees are here to help you.

Mortgage modification

Your lender may be open to negotiation. They might be willing to modify the terms of your mortgage, like reducing your interest rate or offering temporary relief on interest altogether to make your mortgage payments more affordable.

Mortgage payment deferral

Your lender might allow you a temporary payment deferral (or mortgage payment holiday). This is where you are able to skip a number of payments to give you some breathing time to get your finances in order. Do note that any missed payments will likely be added to the end of your mortgage term.

Government assistance programs

When an individual is facing financial hardship, there are government programs that offer temporary assistance to help homeowners facing difficulty with their mortgages. You will need to provide evidence of your circumstances in order to secure relief.

Debt consolidation

Restructuring your debt by combining your mortgage and other debts into a single monthly payment (like a home equity line of credit, or HELOC) can help to simplify and make your debt more manageable. You will usually secure a lower interest rate this way too, making your debt payments more affordable.

Filing a consumer proposal

If you have significant debt that goes beyond your mortgage, a Licensed Insolvency Trustee can help you to reduce your unsecured debts by up to 80% while enabling you to keep your home. Consumer proposals help to consolidate your debts into a single monthly payment, and you can include your mortgage in the plan.

Filing bankruptcy

While often a last resort when it comes to debt relief, bankruptcy can eliminate your unsecured debts, allowing you to focus on your mortgage. While it can have serious consequences on your credit score, for many Canadians it is required for a fresh financial start.

When you are facing challenges with your mortgage, you should reach out to your mortgage lender as soon as you can to discuss your situation. If you are feel like you need a fresh financial future, book a free consultation with an expert Licensed Insolvency Trustee at Spergel. We will review your financial circumstances and walk you through your options so that you can make an informed decision about your mortgage debt relief strategy.