According to a 2023 report by the Financial Consumer Agency of Canada (FCAC), two-thirds of mortgage holders report having trouble meeting their financial commitments, and the percentage of mortgage holders spending more than they earn was the highest it has been since the survey began in August 2020. This phenomenon, known as “house rich, cash poor,” is increasingly affecting Canadians as inflation and interest rates climb, and the cost of living stretches household budgets. As a result, many homeowners are searching for ways to stay afloat without selling their homes. That’s where reverse mortgages come in – and why they’re being heavily marketed across the country.

But before you sign on the dotted line and borrow against your home, it’s worth understanding all your options. At Spergel, we’ve helped over 100,000 Canadians eliminate their debt and keep their homes without the long-term costs of a reverse mortgage. For many, filing a consumer proposal instead is the smarter, safer solution.

Understanding the “house rich, cash poor” dilemma

Homeownership is often seen as a symbol of financial stability. But for many Canadians, the reality is far different. They may have hundreds of thousands of dollars in home equity, but very little liquid cash. Credit card balances, personal loans, tax debt, and unexpected expenses add up fast. And when you’re on a fixed income or dealing with job instability, those monthly payments become unmanageable.

Graeme Hamilton, a Licensed Insolvency Trustee at Spergel, explains:
“Many Canadians are finding themselves in a difficult position where their homes have appreciated, but they have little disposable income to handle daily expenses. This is particularly concerning when dealing with high-interest debt, which can quickly erode any remaining financial flexibility.”

This scenario is especially common among:

• Retirees relying on pension or CPP
• Adults helping financially dependent children and/or parents
• Those recently impacted by illness, divorce, or job loss
• Homeowners facing high-interest debt with limited repayment options

If this sounds familiar, you’re not alone. And you do have options. Here’s what you may be considering if you’re house rich, cash poor.

Reverse mortgages: a popular, but pricey solution

Reverse mortgages are marketed as an easy fix: stay in your home, receive a lump sum or monthly income, and never make payments until you sell or pass away. It sounds appealing – especially if you’re struggling to meet monthly bills or indeed are house rich, cash poor.

But, as with most things that sound too good to be true, there’s a catch. Actually, several:

• Compounding interest: interest on a reverse mortgage accrues over time and is added to the loan balance. This means your debt grows the longer you live in the home.
• Reduced inheritance: as your loan balance grows, your home equity shrinks. This leaves less for your estate and your family.
• Early repayment penalties: if you decide to sell or move out, you could face significant fees.
• Fees and closing costs: reverse mortgages come with set-up costs, legal fees, and appraisal fees that reduce your total payout.
• Loss of flexibility: a reverse mortgage locks you into a contract that may not adapt well if your circumstances change.

In short, you’re borrowing your own money at a high cost. It’s not always the best choice for long-term financial stability.

What if I have a HELOC or mortgage?

Many Canadians exploring debt relief options still owe money on their mortgage or have ahome equity line of credit (HELOC). The good news? You can still file a consumer proposal. Here’s what you need to know:

So if you own your home and are making mortgage or HELOC payments, you can still file a consumer proposal to deal with your unsecured debt. You continue to pay your secured debts (mortgage and HELOC) as usual while freezing interest and stopping collection activity on everything else. This allows you to avoid tapping further into your home equity, while protecting your credit and your home. Plus, without the stresses of paying off your unsecured debts, you’ll likely find it much easier to make your mortgage or HELOC payments. It can be an ideal option for those who are house rich, cash poor.

What is a consumer proposal?

A consumer proposal is a legal, government-regulated debt solution filed through a Licensed Insolvency Trustee (LIT), like our professionals here at Spergel. It allows you to negotiate a structured repayment plan with your creditors, often reducing your debts by up to 80% while allowing you to keep your home. A consumer proposal means you pay back the full amount of your unsecured debt – but without interest, penalties, or collection actions.

That means:

• No interest on your balances
• No more collection calls or wage garnishments
• One affordable monthly payment
• No impact to your home equity

You keep your house. You pay your debts. And you regain control over your finances.

When does a consumer proposal make sense?

We recommend a consumer proposal for individuals who:

• Have significant unsecured debt (e.g., credit cards, payday loans, tax debt)
• Own a home with strong equity
• Want to protect their assets
• Can afford to repay the full amount of their debt if interest is stopped

This is often a great fit for those who are being pressured to get a reverse mortgage or second mortgage to stay afloat. A consumer proposal is a cleaner, more empowering solution with fewer long-term drawbacks.

Why choose Spergel?

At Spergel, we’re not just administrators of debt solutions – we’re advocates for your financial wellbeing. Our Licensed Insolvency Trustees work directly with you, from start to finish. No call centres, no outsourcing, and no judgment. Unlike other bankruptcy firms, you’ll be assigned your very own Licensed Insolvency Trustee to walk you through the end to end debt relief process, without being passed from person to person.

We’ve seen firsthand how Canadians can feel trapped by their debt, especially when their greatest asset – their home – is tied up in equity they can’t access without strings attached. That’s where our approach makes a difference to help those who are house rich, cash poor:

• We negotiate with your creditors to create a proposal that works for everyone
• We protect your home and your dignity
• We eliminate interest and harassment, letting you breathe again
• We walk with you every step of the way until you’re debt-free

Real results, real Canadians

The Thompson family’s story shows how filing a consumer proposal with Spergel helped them avoid the costly long-term impact of a reverse mortgage.

In 2023, a wildfire devastated the Thompsons’ home and bakery in British Columbia. With over $250,000 in debt and no income, they faced the risk of losing everything, including their home. Though they could have accessed their home’s equity through a reverse mortgage, the family chose Spergel’s alternative: a consumer proposal.

Spergel negotiated a 70% debt reduction, lowering their debt to just $75,000, with a manageable repayment plan of $500 per month. This allowed them to keep their home, reopen their bakery, and rebuild their lives. Within months, the Thompsons were back on track and are now set to complete their repayment ahead of schedule.

This story highlights how a consumer proposal can offer a safer, more sustainable path than a reverse mortgage, protecting home equity while providing long-term financial relief.

“When the wildfire destroyed our home and business, we had nowhere to turn. Spergel’s team reduced our debt by 70%, giving us a manageable plan to repay what we owed. Thanks to them, we’re thriving again.” — Mr. Thompson, British Columbia

Discover more Success Stories of Canadians we’ve helped, and see our 3,500+ client reviews.

Still unsure? Let’s talk.

Reverse mortgages may be the right tool in very specific situations. But for many Canadians, especially those who are house rich, cash poor and looking to protect their home and get a handle on debt, a consumer proposal offers a smarter, safer path. Book your free, confidential consultation with Spergel today. No pressure. No obligation. Just real help from people who care. You don’t have to trade your equity to find peace of mind.

What to read next

• Mortgage Debt Relief
• Mortgage renewal: what should I do?
• Mortgage help in Canada: programs available to those struggling to make mortgage payments
• Mortgage foreclosure meaning: a guide
• What is a home equity loan?

What is a reverse mortgage?

A reverse mortgage allows homeowners aged 55 or older to access the equity in their home without having to sell. Essentially, it’s a loan where the homeowner receives funds, and the loan is repaid when the homeowner sells the home or passes away. While it seems like a convenient way to tap into the value of your property without monthly payments, reverse mortgages have significant downsides that can hurt your long-term financial wellbeing.

Why reverse mortgages aren’t always the best option

While reverse mortgages may seem like an easy solution for homeowners looking to access their home equity, they come with several significant downsides. Here’s why a reverse mortgage might not be the right choice for everyone.

Rising debt over time

The biggest issue with reverse mortgages is the accrual of interest. Unlike traditional mortgages, where you pay interest each month, interest on a reverse mortgage is added to the loan balance. Over time, this means that the amount you owe increases significantly. In fact, depending on interest rates, the amount you owe could double in as little as 10 to 15 years, which dramatically reduces the equity in your home.

Costs and fees

Reverse mortgages come with high setup fees, including legal and appraisal fees, which can be significant. These costs are often added to your loan balance, meaning you end up borrowing more than you initially anticipated.

Reduced inheritance

Since the loan balance grows over time, the equity left in your home diminishes, leaving less to pass on to your heirs. If you want to leave a legacy for your family, a reverse mortgage may not align with your long-term financial goals.

Limited flexibility

If your situation changes and you need to move or sell your home sooner than expected, reverse mortgages can come with penalties. This makes it less flexible than other debt management options that don’t tie you to your home’s equity.

What is a consumer proposal?

A consumer proposal is a formal, government-approved solution for managing unsecured debt, such as credit card balances, personal loans, and tax debt. It’s an agreement between you and your creditors where you pay back a portion of what you owe over a fixed period (usually 3-5 years). The terms of the proposal are designed to be manageable based on your financial situation, and you’ll only pay what you can afford – with no interest or added fees. It can often reduce your debt by up to 80%.

Unlike a reverse mortgage, a consumer proposal allows you to keep your home without using its equity. Instead of borrowing more, you settle your debts for less, which helps you regain control over your finances and protects your property from being used as collateral.

Why a consumer proposal is often a better solution than a reverse mortgage

For homeowners struggling with debt, a consumer proposal can offer a more sustainable and flexible solution compared to a reverse mortgage. Here’s why many find a consumer proposal to be the better option.

Protect your home equity

A reverse mortgage depletes your home equity, which can leave you with limited assets down the road. In contrast, a consumer proposal allows you to keep your home’s equity intact while addressing your unsecured debts. This ensures your home remains an asset for your future.

Lower long-term costs

With a reverse mortgage, you’re paying for the privilege of borrowing your own money, with interest compounding over time. In contrast, a consumer proposal typically results in a reduction in your overall debt, with affordable monthly payments and no interest. This makes it a far less expensive option over the long term.

Avoid high fees

Reverse mortgages come with hidden fees and interest charges, which can eat into the amount of money you receive. A consumer proposal, on the other hand, is a transparent process with clearly defined costs, allowing you to keep more of your assets and make payments on terms you can manage.

Financial flexibility

Unlike reverse mortgages, which lock you into a contract that can be difficult to break, consumer proposals are flexible. If your financial situation improves, you can pay off your proposal early without penalties, allowing you to regain your financial independence more quickly.

Comprehensive debt relief

While a reverse mortgage may only help with cash flow, it doesn’t address the underlying issue of debt. A consumer proposal consolidates all your unsecured debts into one manageable payment, offering a fresh start without losing your home.

When is a reverse mortgage the right option?

For some homeowners, a reverse mortgage may be a short-term solution to access cash without selling their home. It’s important, however, to weigh the long-term costs and consider how it will affect your financial future. If you’re primarily concerned with maintaining your home, a consumer proposal can provide a more stable financial future without the risks associated with reverse mortgages.

How Spergel can help

At Spergel, we specialize in debt relief solutions that help homeowners navigate financial difficulties without sacrificing their homes. If you’re considering a reverse mortgage, it’s essential to understand all of your options. Our experienced Licensed Insolvency Trustees can help you explore whether a consumer proposal is the better fit for your situation.

Real results: how Spergel helped Jenna overcome gambling debt

Jenna, in her mid-50s, found herself buried in debt due to a gambling addiction. Unable to manage her mounting credit card bills and loans, she turned to Spergel for help. Instead of opting for a reverse mortgage, which would have drained her home equity, Jenna chose a consumer proposal.

Spergel negotiated a 70% debt reduction, allowing Jenna to keep her home and regain financial control. With a manageable repayment plan in place, Jenna is on track to complete her proposal and secure a stable future.

“Spergel helped me reduce my debt by 70% and gave me the chance to rebuild my financial life. I now have a clear path forward.” — Jenna, Ontario

Discover more of our Success Stories, and over 3,500 positive client reviews.

Get help today

If you’re struggling with debt and considering a reverse mortgage, contact Spergel today to explore how a consumer proposal can provide the relief you need without sacrificing your home’s equity. Book your free, confidential consultation now to find out how we can help you achieve long-term financial freedom.

What to read next

• Debt relief options for Canadian homeowners: what to do if you have equity
• Missed mortgage payment – what are the consequences?
• Mortgage renewal: what should I do?
• Mortgage help in Canada: programs available to those struggling to make mortgage payments
• Should I use home equity to pay off debt?

At Spergel, we speak with numerous Canadians who feel trapped between mounting debt and the home they’ve worked hard to acquire. If this resonates with you, know that you’re not alone – and there are options available to help you navigate this challenging financial landscape.

Here’s what homeowners need to know about leveraging home equity to manage debt and how to determine the most suitable debt relief option for your situation.

First, what is home equity?

Home equity is the difference between your home’s current market value and the remaining balance on your mortgage. For example, if your home is worth $600,000 and you owe $400,000 on your mortgage, you have $200,000 in equity. Home equity is a valuable asset – and when filing a consumer proposal, it becomes one factor in building your repayment plan.

Many Canadians don’t realize that this equity can open doors to a range of debt relief solutions – some that let you keep your home while getting your finances back on track.

Home equity doesn’t disqualify you from debt relief – it simply changes the strategy

If you’re a Canadian homeowner struggling with debt, it’s natural to wonder:

• “I have a house – does that mean I don’t qualify for help?”
• “I’ve been told I can’t file because I have equity.”
• “Do I have to sell my house to get relief?”

We hear these concerns every day. And here’s the truth:
Having equity in your home does not mean you can’t get help.

At Spergel, we believe that home equity is not a disqualification – it’s an opportunity to restructure your debt in a way that supports your long-term financial goals.

Option 1: use a home equity loan (or HELOC)

If your credit is still in good shape, you may qualify for a home equity loan or Home Equity Line of Credit (HELOC). These options allow you to borrow against your home’s equity to pay off high-interest debt like credit cards, personal loans, or payday loans.

Pros of a home equity loan:

• Lower interest rates compared to unsecured debt
• One monthly payment to manage
• You retain full control of your assets

Cons of a home equity loan:

• You’re securing more debt against your home
• If you miss payments, your home could be at risk
• Not always accessible if your credit score has declined

If you’ve already tried this route and it’s not helping, it may be time to consider a more structured debt relief option.

Option 2: Consumer proposal

A consumer proposal is a legal debt settlement program administered by a Licensed Insolvency Trustee. You repay a portion of your debt based on what you can afford – interest-free – and the rest is forgiven.

If you have home equity, you can still qualify. In fact, many homeowners choose a consumer proposal to avoid selling their home while reducing their debt.

Pros of a consumer proposal:

• Keep your home and other assets
• Stop collection calls and wage garnishments
• Pay off debt with one manageable monthly payment
• Avoid bankruptcy

Cons of a consumer proposal:

• Impacts your credit for a period (typically 3 years after completion)
• You must have a stable income to make proposal payments

At Spergel, our Licensed Insolvency Trustees work with you to tailor a consumer proposal that reflects your specific situation – including your equity, income, and total debt.

Option 3: Debt consolidation loan

A debt consolidation loan combines multiple debts into one loan with a lower interest rate. Homeowners may qualify for better terms if they use their home as collateral.

Pros of a debt consolidation loan:

• Simplifies repayment into one monthly bill
• May reduce the amount you pay in interest
• Can help improve your credit score over time if you make regular payments

Cons of a debt consolidation loan:

• You still owe the full amount, just at a different rate
• You may need strong credit to qualify
• Doesn’t reduce your total debt load like a consumer proposal would

This may be a good short-term solution if your income is steady and your debt is manageable.

Option 4: Bankruptcy (as a last resort)

If your debt is severe and you’re unable to repay even a portion through a consumer proposal, bankruptcy may be the best path to financial relief. However, it’s not necessarily a given that you’ll lose your home. In some cases, homeowners with equity may be able to keep their property by making arrangements with their Licensed Insolvency Trustee – such as buying back the equity over time.

Pros of bankruptcy:

• Complete debt forgiveness
• Legal protection from creditors
• A fresh start financially

Cons of bankruptcy:

• May require selling non-exempt assets or paying into the estate
• Strong impact on your credit (though it does recover over time)
• More complex if you have equity

What happens if you file a consumer proposal with equity?

When you work with a Licensed Insolvency Trustee at Spergel, we take your equity into account and help design a consumer proposal that makes sense for your situation. That might look like:

• Adjusting your monthly payments to reflect your equity and make the offer more appealing to your creditors
• Allowing you to keep your home, rather than forcing you to sell it
• Creating a longer-term strategy – such as refinancing at mortgage renewal to pay off the consumer proposal sooner

Every case is different, which is why our team takes a strategic approach – not a one-size-fits-all solution.

Real debt relief for real life

At Spergel, we’ve helped over one hundred thousand homeowners navigate debt while keeping their homes – and peace of mind. One of the most important messages we share with our clients is this:

“Having equity doesn’t mean you can’t get help. It just means we’ll structure your consumer proposal in a way that works for your goals.”

Homeowners often assume that having any equity means they’ll automatically be disqualified or forced to repay 100% of what they owe. But that’s not the case. In fact, many homeowners file consumer proposals. We simply look at the equity and adjust the monthly payments accordingly – something that fits your budget. Whether it’s planning around mortgage renewal, balancing monthly affordability, or protecting your home from the get-go, our goal is to make your debt solution work for your real life.

With the right structure and strategy, you can reduce your debt, stay in your home, and finally move forward.

When it might be time to reconsider

The only time we might recommend holding off on a consumer proposal is if:

• You’re actively refinancing this week, or
• You’re firmly against a consumer proposal and only looking for a loan or credit counselling

Otherwise, home equity should never be a reason to walk away from getting the debt relief support you deserve.

Debt relief options for Canadian homeowners: FAQs

Here are some of the most common questions we receive about debt relief options for Canadian homeowners:

​Yes, Canada offers government-regulated debt relief programs, notably the consumer proposal and bankruptcy, both governed by the Bankruptcy and Insolvency Act. A consumer proposal is a formal agreement administered by a Licensed Insolvency Trustee that allows you to repay a portion of your unsecured debt over a period of up to five years, with the remaining debt forgiven upon completion. This option enables you to avoid bankruptcy, keep your assets, and make manageable monthly payments without accruing interest. ​

Alternatively, bankruptcy provides a legal process for individuals unable to meet their debt obligations, resulting in the discharge of most debts but potentially requiring the surrender of certain assets. Both options offer protection from creditor actions and are designed to provide a fresh financial start.

How do I get my debt written off in Canada?

To get your debt written off in Canada, you’ll need to work with a Licensed Insolvency Trustee through a formal process like a consumer proposal or bankruptcy. A consumer proposal lets you settle your debt for less than you owe and repay it over time, with the rest legally forgiven. Bankruptcy is a last resort that wipes out most debts once the process is complete. Both options stop collection calls and wage garnishments, giving you a fresh financial start.

What happens if you can’t pay your mortgage in Canada?

If you can’t pay your mortgage in Canada, your lender may first offer solutions like a payment deferral or restructuring plan. If payments continue to be missed, the lender can begin legal action – typically power of sale or foreclosure – which may result in you losing your home. You could also be held responsible for any shortfall if the sale doesn’t cover what you owe. Acting early by speaking with your lender or a Licensed Insolvency Trustee can help you explore alternatives and avoid more serious consequences.

Talk to a Licensed Insolvency Trustee about your options

Whether you own a condo, townhouse, or detached home – and whether you’ve built up some equity or not – there’s a path forward. At Spergel, we’ll help you understand your full financial picture and find a debt relief plan that’s tailored to you:

• No judgment
• No pressure
• Just honest, strategic advice

Book your free consultation today – and take the first step toward financial freedom, without giving up the place you call home. Because debt shouldn’t decide.

What to read next

• What is a home equity loan?
• Should I use home equity to pay off debt?
• The top 10 debt questions Canadians are asking in 2025 – and what you need to know
• What is the risk of a personal loan?
• Debunking common bankruptcy myths: the truth about debt relief in Canada

How bankruptcy affects your mortgage eligibility

When you declare bankruptcy, it impacts your credit score and financial history, both of which lenders closely evaluate when approving a mortgage. Key factors that lenders consider include:

• Credit score
• Income stability
• Down payment amount
• Debt-to-income ratio

Bankruptcy stays on your credit report for 6-7 years (depending on the type), but it doesn’t mean permanent disqualification from homeownership. According to the Financial Consumer Agency of Canada, rebuilding your credit and demonstrating financial stability are critical steps to regain lender trust.

How to rebuild your credit after bankruptcy

Lenders want to see that you’ve regained financial stability. Here’s how you can rebuild your credit:

1. Pay your bills on time: timely payments signal responsible financial habits.
2. Use a secured credit card: a secured credit card helps rebuild credit while minimizing risk to lenders.
3. Monitor your credit report: ensure that your bankruptcy is correctly recorded and that there are no errors.
4. Reduce your debt: keep your credit utilization ratio low by paying off outstanding balances.

How long should you wait before applying for a mortgage after bankruptcy?

The waiting period before you can qualify for a mortgage depends on several factors:

• Discharge period: most lenders require proof of discharge from bankruptcy.
• Credit rebuilding time: aim for at least 1-2 years of solid credit activity post-discharge.
• Type of mortgage: some lenders specialize in helping individuals with past bankruptcies secure mortgages, although they may require higher interest rates or larger down payments.

How to qualify for a mortgage after bankruptcy

We recommend taking the following steps to increase your chances of having your mortgage application approved:

• Save for a larger down payment: lenders are more likely to approve your application if you can provide 20% or more. The Canada Mortgage and Housing Corporation (CMHC) outlines minimum down payment requirements, which may vary depending on the mortgage type.
• Demonstrate steady income: a stable job and consistent income are key factors in gaining lender trust.
• Work with a mortgage broker: brokers specializing in post-bankruptcy mortgages can connect you with flexible lenders.
• Consider alternative lenders: while big banks may be cautious, private lenders or B lenders often offer more lenient terms.

What type of mortgage should you get after bankruptcy?

Securing a mortgage after bankruptcy may seem challenging, but it’s not impossible. Many mortgage lenders consider individuals who have filed for bankruptcy as viable borrowers, often because they can charge higher interest rates. Additionally, these individuals typically have no outstanding debts and may be more financially responsible after completing mandatory credit counselling sessions. When exploring mortgage options after bankruptcy, there are several key factors lenders will assess:

• Time since bankruptcy discharge: the length of time since your discharge impacts your eligibility for different mortgage types.
• Credit score: your re-established credit plays a critical role in securing favourable terms.
• Down payment: the size of your down payment can influence the type of mortgage you qualify for.
• Debt-to-income ratio: lenders evaluate how much debt you have compared to your total income.
• Loan-to-value ratio: this ratio compares the mortgage amount to the property’s appraised value.

Based on these criteria, there are three main types of mortgages you may qualify for after bankruptcy:

Traditional or prime insured mortgage

1. Offers the lowest interest rates but has stricter eligibility requirements.
2. You must have been discharged from bankruptcy for at least two years.
3. Requires at least one year of reestablished credit on two credit accounts.
4. A down payment of 5% is required for the first $500,000 of the home’s price, with an additional 10% for amounts exceeding this. Mortgage insurance through CMHC is required if your down payment is less than 20%.

Subprime mortgage

1. An option for borrowers who don’t meet the criteria for a traditional mortgage but exceed those for a private mortgage.
2. Requires being discharged from bankruptcy for at least 3 to 12 months.
3. Has less stringent credit and down payment requirements compared to a traditional mortgage.

Private mortgage

1. Provides a solution immediately after bankruptcy for those unable to qualify for traditional or subprime mortgages.
2. No reestablished credit is required.
3. Typically requires a 15% down payment.
4. Involves higher interest rates and may include a lender commitment fee of about 1% of the property’s value.

Can you keep your mortgage through bankruptcy?

If you already have a mortgage before declaring bankruptcy, it’s possible to keep your home. Before starting the bankruptcy process, your Licensed Insolvency Trustee will work with you on an assignment in bankruptcy. This is where your trustee will work to maximize what is given to creditors to whom you owe money. This includes any property, provided it has equity. If the value of your property is equal to what may be owed on your mortgage, your bankruptcy trustee may allow you to keep your home and continue making the payments. This means you can continue to have a mortgage after bankruptcy. Equally, if there is equity in your property, provided you can pay in the value of the equity into your bankruptcy, you may also be able to keep your home.

Why a consumer proposal might be better for securing a mortgage

A consumer proposal can often be a more favourable option compared to filing for bankruptcy if you’re planning to apply for a mortgage in the future. Unlike bankruptcy, a consumer proposal allows you to retain your assets, including your home, while negotiating a manageable repayment plan with your creditors. Additionally, because a consumer proposal shows lenders that you took responsibility for your debts and avoided declaring bankruptcy, it may have a less severe impact on your credit score. This can make it easier to rebuild your credit faster, improving your eligibility for traditional or subprime mortgages sooner. With a consumer proposal, you also avoid the “discharged from bankruptcy” requirement, which often delays mortgage approval, allowing you to access better rates and terms more quickly.

Take the first step toward homeownership

Qualifying for a mortgage after bankruptcy is challenging, but it’s achievable with patience and diligence. Focus on rebuilding your credit, saving for a down payment, and working with experts who understand your situation. Spergel’s Licensed Insolvency Trustees can support you every step of the way, offering personalized advice to help you achieve your financial goals.

If you want to learn more about qualifying for a mortgage after bankruptcy, book a free consultation with one of our experienced Licensed Insolvency Trustees. We will walk you through each step of the bankruptcy process. At Spergel, we have helped over 100,000 Canadians become debt free, and you could be next. You owe it to yourself.

What to read next

• Mortgage debt relief
• Mortgage foreclosure meaning: a guide
• Mortgage renewal: what should I do?
• Mortgage help in Canada: programs available to those struggling to make mortgage payments
• Defer mortgage payment: a guide to deferrals

What is bad credit and what does it mean?

Your credit score is a numerical representation of your creditworthiness, typically ranging from 300 to 900 in Canada. Lenders use this score to assess the risk of lending you money. Generally, a score below 650 is considered subprime, and anything above 700 is considered good. If your score falls below 600, you are likely to face difficulties in securing a traditional mortgage. Having a poor credit score indicates to mortgage lenders that it’s likely you won’t be able to make your loan payments on time. This can mean some lenders aren’t willing to lend you a mortgage, as there’s increased risk that you could default. Here are the two most common signs of having bad credit:

• Low credit score – if you have a ‘good’ credit score (700+), you can get a mortgage from a traditional financial institution like a bank. This will give you the most favourable interest rates and terms. A ‘fair’ credit score (600 – 699) shouldn’t hinder your chances of a mortgage too much. If you have a ‘bad’ credit score (>600), you will struggle to secure a mortgage from a traditional lender as you won’t be able to secure an insured mortgage. You’ll need to go to an alternative lender instead, like a B lender or a private lender.
• Poor credit report – even if you have a good credit score, most mortgage lenders will see your credit report in a bad light if there’s any of the following:
  • Bankruptcy
  • Overdue payments
  • Closed accounts due to payment defaults
  • Accounts sent to collection agencies
  • High credit utilization
  • An unusually high number of credit inquiries

Factors that impact your credit score

Several factors can negatively impact your credit score, including:

• Late or missed payments: not paying your bills on time, or paying them at all.
• High credit utilization: using a large portion of your available credit can imply to banks that you can’t live within your means.
• Bankruptcy or consumer proposals: legal actions to resolve unpaid debts.
• Multiple credit inquiries: frequently applying for new credit, suggesting you need to borrow more than you can afford.

It can take years for these adverse events to disappear from your credit report. Late payments and loans sent to a collection agency, for instance, can remain on your report for up to six years.

How does bad credit affect your ability to get a mortgage?

While it’s definitely possible to secure a mortgage in Canada with bad credit, you need to be realistic about the situation and take into consideration the consequences. If you’re a borrower with a a poor credit history or a bad credit score, you’ll need to face higher interest rates, fees, and even strict terms and conditions on your mortgage. It might also be difficult to find an extended term (five or more years), and your lender may require a larger down payment. If you’re refinancing a mortgage, your lender might only approve your mortgage application if you have equity in your home.

How to get a mortgage with bad credit

Thankfully, there are some ways you can explore to get the mortgage you need for your home. Here are some of our top tips for securing a mortgage when you have bad credit:

Check your credit report

Before applying for a mortgage, obtain a copy of your credit report from Canada’s two major credit bureaus (Equifax and TransUnion) to ensure there are no errors and to understand your credit standing.

Improve your credit score

While it may take time, improving your credit score can significantly increase your chances of securing a mortgage. Pay down debts, avoid late payments, and limit new credit inquiries. At Spergel, we can help you to rebuild your credit score.

Save for a larger down payment

A larger down payment reduces the lender’s risk. If you can manage to save at least 20% of the home’s purchase price, you may find it easier to get approved.

Consider a subprime mortgage lender

If traditional banks turn you down, consider subprime lenders who specialize in providing loans to individuals with poor credit. These lenders will typically charge higher interest rates and may require larger down payments. They usually have more lenient criteria for mortgages, and are more likely to accept applicants with a poor credit score. It’s often worth appointing a mortgage broker to help you to find a poor credit mortgage lender as they know how and where to find the best deals.

Apply with a private lender

If you struggle to secure a mortgage from a subprime lender, you might need to approach a private lender instead. Criteria for a private lender are lower than subprime lenders, so you could secure a mortgage even with a bad credit score. Private lenders don’t typically focus on your credit score, but other factors too like income and home equity. A private lender is the easiest way to get a mortgage if your credit is suffering. Do note, private lenders do have exceptionally high interest rates, fees, and a low tolerance for late payments. Missing a payment could lead to foreclosure or power of sale.

Get a co-signer or guarantor

A co-signer with good credit can improve your chances of getting approved. The co-signer agrees to take on the responsibility of the loan if you default. Whoever you ask to be your co-signer should have a strong credit history and earn a stable income. A guarantor is similar to a co-signer in that they share the responsibility for the mortgage payments with you, yet the lender will only chase them for payment if they’re not able to collect money from you first.

Provide proof of income and employment stability

Lenders will be more inclined to approve your application if you can demonstrate stable income and employment history. Provide documentation such as pay stubs, tax returns, and employment letters.

Consider a rent-to-own home

A rent-to-own agreement in Canada offers an alternative home financing option for those with poor credit or limited down payment funds. It involves renting a property while accumulating rent credits that can be used as a down payment at the end of the lease phase, allowing you to build credit and save for a future purchase. This arrangement does, however, often require higher-than-average rent and carries risks, such as potential penalties if you don’t qualify for a mortgage or decide not to buy the property.

Pros and cons of getting a mortgage with bad credit

We’ve summarized some of the advantages and disadvantages of securing a mortgage with bad credit so you’re well placed to make a decision on what’s right for you and your financial circumstances.

Pros of getting a mortgage with bad credit

• Homeownership: even with bad credit, you can still achieve the dream of owning a home.
• Equity building: making mortgage payments helps you build equity over time.
• Credit improvement: consistently paying your mortgage can improve your credit score.

Cons of getting a mortgage with bad credit

• Higher interest rates: expect to pay more in interest compared to those with good credit.
• Larger down payments: you may need to provide a higher down payment to secure a loan.
• Stricter terms: lenders may impose more stringent terms and conditions.

Tips for improving your credit score

To improve your chances of securing a mortgage in the future, consider these tips:

• Pay your bills on time: consistent, timely payments boost your credit score.
• Reduce debt: lower your credit card balances and pay off outstanding loans.
• Avoid new credit: limit applying for new credit until your score improves.
• Keep old accounts open: the length of your credit history impacts your score, so keep old accounts open even if you don’t use them frequently.

Can you get a mortgage with bad credit in Canada? FAQs

Here are some of the most commonly asked questions we receive around getting a mortgage with bad credit.

How does a bankruptcy on your credit report affect your mortgage application?

A bankruptcy on your credit report significantly impacts your mortgage application by lowering your credit score and raising red flags for lenders, who may view you as a high-risk borrower. This can result in higher interest rates, stricter lending terms, or outright denial of your mortgage application. Additionally, many lenders require a waiting period, often two years or more, after a bankruptcy discharge before considering your application, during which you must rebuild your credit and demonstrate financial stability.

Can I get a mortgage with no Canadian credit history?

Obtaining a mortgage with no Canadian credit history can be challenging but is possible. Lenders rely heavily on credit history to assess risk, and without it, they may be hesitant to approve a mortgage. However, alternatives include providing a substantial down payment, showing proof of steady income and employment, and offering a detailed credit history from your home country. Additionally, some lenders may accept alternative credit references, such as rental payment history and utility bills, to establish your financial reliability. Working with a mortgage broker who understands these unique circumstances can also increase your chances of securing a mortgage.

What is the lowest credit score to get a mortgage in Canada?

In Canada, the minimum credit score required to qualify for a mortgage generally ranges from 600 to 680, depending on the lender and type of mortgage. Traditional lenders, like banks, typically require a score of at least 620 to 680 for approval. However, alternative lenders or private lenders might consider applicants with lower scores, sometimes as low as 550, though these mortgages often come with higher interest rates and stricter terms. Maintaining a good credit score improves your chances of getting favourable mortgage terms and lower interest rates.

Which bank gives a mortgage with bad credit?

Several banks and lenders in Canada offer mortgages to individuals with bad credit, though the terms may vary. Major banks like TD Canada Trust and BMO may provide mortgages to those with less-than-perfect credit, but typically require a higher down payment and may charge higher interest rates. Alternative lenders, such as Home Trust and Equitable Bank, specialize in offering mortgages to those with poor credit histories, often with more flexible terms but at a premium. It’s crucial to shop around and compare offers to find the best possible terms given your credit situation.

While getting a mortgage with bad credit in Canada presents challenges, it’s certainly not impossible. By understanding your credit score, exploring alternative lenders, and improving your financial habits, you can increase your chances of securing a mortgage. As Licensed Insolvency Trustees, the team at Spergel (the ‘get rid of debt’ people) can help you to resolve your credit cards, payday loans, and other debts preventing you from getting a mortgage. Book a free consultation with a member of our team today.

What to read next

• 30 year mortgage: what this could mean for you
• What happens when you default on a mortgage in Canada?
• How long after a consumer proposal can I get a mortgage?
• Mortgage renewal: what should I do?
• What happens if you can’t pay your mortgage in Canada?

What does a 30 year mortgage mean for you?

Until 1 August 2024, the longest mortgage amortization in Canada permitted for an insured mortgage is 25 years. Amortization is the time it takes to pay off your mortgage in full, including any interest and principal payments you’ll make. In Canada, if you have a down payment that is less than 20% of the property’s value, you need to have mortgage insurance in place. This protects your lender should you default on your mortgage, and is often purchased from the Canada Mortgage and Housing Corporate (CMHC). With the new rules in place for a 30 year insured mortgage from August 2024, you now no longer require a 20% down payment for a 30 year mortgage. This now means you can avoid the higher interest associated with not having mortgage insurance.

What are the pros of a 30 year mortgage?

Considering taking on a 30 year mortgage? Here are the advantages to be aware of:

1. Affordability: a 30 year mortgage means your payments are spread out across a longer period of time, meaning they are lower and making homeownership more accessible.
2. The ability to purchase a more expensive property: a 30 year mortgage may help you to qualify for a larger mortgage, meaning you can spend more on your property.
3. Flexibility: extra cash flow can be used for other financial goals or emergencies.
4. Stability: fixed monthly payments provide predictable budgeting.

What are the cons of a 30 year mortgage?

Here are some of the disadvantages of a 30 year mortgage:

1. Higher interest costs: you’ll pay more interest over the life of the loan compared to shorter terms.
2. Slower equity growth: it takes longer to build significant equity in your home.
3. Longer debt commitment: you’ll be making mortgage payments for three decades, which can be daunting.

Is a 30 year mortgage right for you?

Choosing a 30-year mortgage depends on your financial situation, goals, and comfort with long-term debt. Here are some scenarios where a 30-year mortgage might be a good fit:

• First-time homebuyers: the lower monthly payments can make it easier to enter the housing market.
• Limited monthly income: if your budget is tight, the reduced payments can help you manage your finances more comfortably.
• Long-term stability: if you plan to stay in your home for many years, the stable payments and lower initial cost can be beneficial.
• More income to use for other debts: having lower monthly payments frees up more cash which you can use towards paying off other debts.
• You don’t require your home equity immediately: your home equity will grow slowly under a 30 year mortgage, meaning you have less options for refinancing or borrowing against your home equity.

If, however, you’re focused on paying off your home quickly and can afford higher monthly payments, a shorter-term mortgage might be more suitable. It’s crucial to weigh up the pros and cons and consider your long-term financial plans.

Ultimately, a 30-year mortgage offers both benefits and drawbacks. Its lower monthly payments provide financial flexibility and make homeownership more accessible, but the higher total interest and slower equity growth are important considerations. At Spergel, the ‘get rid of debt’ people, we’re here to help you navigate the complexities of mortgage debt if you’re finding it overwhelming. Book a free consultation today to discuss your debt relief options and find the best solution for your needs.

What to read next

• How long after a consumer proposal can I get a mortgage?
• Mortgage renewal: what should I do?
• Mortgage debt relief
• What happens if you can’t pay your mortgage in Canada?
• The 47 year mortgage – what does it mean for you?

What is a HELOC?

A HELOC is a type of revolving credit that allows homeowners to borrow against the equity they have built up in their property. Essentially, a HELOC provides homeowners with a flexible and convenient way to access funds by using their home as collateral. Unlike a traditional mortgage or loan, where the borrower receives a lump sum upfront, a HELOC operates more like a credit card, enabling homeowners to borrow funds as needed, up to a predetermined credit limit. Interest is only charged on the amount borrowed, and borrowers have the flexibility to repay and redraw funds as desired during the draw period, typically ranging from five to ten years. HELOCs can be used for various purposes, including home renovations, debt consolidation, education expenses, or unexpected financial emergencies.

What are the pros of a HELOC?

There are a number of benefits of a HELOC:

• Lower interest rates – while mortgage rates have escalated in the last couple of years, HELOC rates are typically lower than those on credit cards and personal loans. HELOCs can therefore be a cheaper way to consolidate debt or finance a home renovation.
• Flexibility – HELOCs enable you to use the funds as and when you need them. You only need to repay what you borrowed, as well as the accompanying interest. You can access your HELOC funds in a number of ways, and some lenders permit you to convert all or some of your HELOC balance to a fixed rate so you don’t risk facing a higher interest later down the line.
• Potential tax deduction – you’re able to deduct interest paid on a HELOC if you use the funds for home renovations and improve your property.
• Potential credit score improvement – adding a HELOC to your credit history and making your payments on time can help to boost your overall credit score.
• You can borrow a large amount – HELOCs are generally intended for at least five figures, and you can typically borrow up to 80% of the equity in your property.

What are the cons of a HELOC?

There are a number of disadvantages of a HELOC:

• Rates are variable – where home equity loans usually have a fixed interest rate, the interest rates of HELOCs are variable. This means that while you might take out a HELOC at a lower rate, it could become much higher when you need to make repayments.
• It could put your home at risk – as a HELOC is a secured loan, your home is used as collateral. This means that if you can’t make your monthly HELOC payments, your house could be on the line.
• Variable equity – when you take out a HELOC, you borrow against your home’s equity. Should your property’s price decline, you could end up owing more than the value of your home.
• A high balance – as many HELOCs allow you to make interest-only payments during the draw period, it’s all too easy to access cash without considering the consequences. If you fall behind on payments, your credit score could be impacted.
• A callable loan – your lender might be able to demand legally that you pay your full balance whenever they want, depending on the terms of your agreement.
• Variable terms and conditions – your lender is able to decrease your credit limit whenever they like.

Given the risks that HELOCs can carry for borrowers, it’s easy to see why the Office of the Superintendent of Financial Institutions (OSFI) was keen to impose stricter borrowing limits.

How have HELOC restrictions changed?

Back in 2022, the OSFI declared changes were coming for HELOCs, with tighter restrictions being imposed. The tighter restrictions would mean that Canadian homeowners could borrow less, and the money that they borrow would face stricter rules. It’s important that Canadians understand the consequences of these new restrictions, how they will work, and what it could mean for your household. Here are the primary changes:

• The OSFI has targeted a loan product called a readvanceable mortgage. It’s a combined loan plan, and Canada’s top financial institutions have been offering this type of mortgage for a while. Readvanceable mortgages blend conventional mortgages with a HELOC.
• This means you can borrow money against your home’s equity up to a predetermined limit. As you reduce your mortgage principal via monthly payments, more money is available to take from your HELOC. Essentially, you can borrow more as your mortgage reduces.
• Previously, you could borrow up to 80% of the value of your home, except for your mortgage principal.
• Under the tighter restrictions, you will only be able to borrow up to 65% of your property’s value, minus any mortgage balance. This is quite a significant drop for the average household. Say, for instance, your property is worth $600,000 with an outstanding mortgage of $300,000. Previously, the maximum HELOC you could borrow would have been $180,000 at 80%. Now, under the new limits of 65%, this would reduce to $90,000. This means that borrowers have access to a smaller portion of their home equity through a HELOC, potentially limiting their borrowing capacity.

Why were these tighter restrictions introduced?

It’s important to understand the rationale behind the tighter restrictions on HELOCs. These measures were introduced by financial regulators to mitigate risks associated with rising household debt levels and overheated housing markets. By imposing stricter eligibility criteria and borrowing limits, regulators aim to safeguard consumers and prevent over borrowing, particularly in the context of uncertain economic conditions. Additionally, the restrictions can also impact the repayment terms and borrowing costs associated with HELOCs. Lenders may implement stricter affordability assessments and underwriting standards to ensure that borrowers can comfortably manage their debt obligations. The Canadian housing market is vulnerable due to high property costs and increased interest rates, and defaults on HELOCs and mortgages could prove devastating for the economy, which the OFSI wants to prevent. As a result, homeowners may encounter more stringent qualification requirements and higher interest rates when applying for a HELOC.

What happens if you already have a HELOC in place?

In this case, your lender will force you to start repaying the balance borrowed until your HELOC drops back to 65%. The 65% threshold applied to all federally regulated lenders at the end of their fiscal year in 2023. As a result, it officially took effect at the end of last year, depending on which institution issued your mortgage. As a borrower, the new HELOC borrowing limit won’t impact you until your mortgage comes up for renewal. Going over the 65% borrowing limit poses a significant risk if you can’t afford to make your repayments. You could face financial difficulty and risk losing your home if you are unable to repay what you borrowed. If you find yourself in this situation, you should contact a Licensed Insolvency Trustee at Spergel as soon as you can. We have over 34 years’ experience of helping Canadians to get their finances back on track, and we can help you too if you’re feeling overwhelmed by a HELOC or mortgage debt.

How to adapt to the tighter HELOC restrictions

Using your HELOC sensibly can mitigate the impact of tighter borrowing restrictions, and offer some security. Yet tapping into your HELOC to address high-interest debt, cover significant expenses, or meet daily living costs may lead to challenging financial decisions as your borrowing capacity diminishes. It’s crucial, therefore, to assess your spending habits and adjust your financial plan accordingly. Here are some suggestions to help:

• As your mortgage renewal approaches, negotiate with your lender for a lower rate to minimize interest expenses. Consider transferring your re-advance mortgage to another lender if this offers you a better deal.
• If your HELOC balance exceeds the upcoming 65% borrowing limit, reduce it as much as possible as quickly as you can. Use debt reduction strategies to avoid falling into a cycle of debt.
• Choose debt alternatives wisely – an unsecured line of credit, for instance, generally offers more favourable terms than a credit card.
• Explore transferring some of your unsecured debts to a balance transfer credit card.
• Reconsider or postpone large expenses, such as home renovations or car down payments.
• Rebuild your credit score to qualify for additional loan products at favourable interest rates, beyond a HELOC.
• Make mortgage prepayments to bolster your home equity, and enhance your HELOC borrowing capacity.

With regulators having tightened lending standards, it’s important to address your debts promptly. A HELOC may no longer serve as the readily available safety net it once did for covering overdue bills or addressing mounting credit card debt. If your debts are overwhelming and you’re not sure what to do, remember that various debt relief options are available in Canada. Licensed Insolvency Trustees are the only professionals in Canada legally able to file all forms of debt relief, making them well placed to advise you on your specific circumstances and recommend an appropriate option. With a well-devised strategy, you can eliminate or significantly reduce your debt and pave the way for a fresh financial future.

HELOCs: what the tighter restrictions mean for you – FAQs

Here are some of the most common questions we receive about HELOCs and the tighter restrictions:

Is there anything you cannot use a HELOC for?

While HELOCs offer flexibility and accessibility, there are limitations on what you can use them for. Typically, HELOC funds can be used for a variety of purposes, including home renovations, debt consolidation, education expenses, or unexpected financial emergencies. However, there are some restrictions on certain uses of HELOC funds. For example, you generally cannot use a HELOC to purchase investment properties, stocks, or other speculative investments. Additionally, using a HELOC for everyday expenses without a clear repayment plan can lead to financial strain and should be approached with caution. It’s essential to review the terms of your HELOC agreement and consult with your lender to ensure compliance with any restrictions on usage.

What is the limit on a HELOC?

The limit on a HELOC is determined by several factors, including the appraised value of your home, the outstanding mortgage balance, and the lender’s policies. Typically, lenders allow homeowners to borrow up to a certain percentage of their home’s appraised value, minus any outstanding mortgage balance. This percentage can vary but is often capped at around 65% of the home’s value. For example, if your home is appraised at $300,000 and you have a remaining mortgage balance of $150,000, you may qualify for a HELOC with a limit of up to $45,000 (65% of $300,000, minus $150,000). However, it’s important to note that lenders may impose additional criteria and assessments to determine the final HELOC limit, such as your credit score, income, and debt-to-income ratio. It’s advisable to consult with your lender to understand the specific terms and conditions of your HELOC agreement and ensure that you borrow responsibly within the established limits.

How does a HELOC affect your mortgage?

Opening a HELOC can affect your mortgage in several ways. Firstly, it increases your overall debt load as you’re essentially taking on additional debt secured by your home’s equity. This can impact your credit score, initially causing a slight dip due to the credit inquiry and new account, and potentially affecting your credit utilization ratio if you maintain high balances on the HELOC relative to the credit limit. Managing both your mortgage and HELOC payments can also become a factor, especially if you consolidate high-interest debt or finance large expenses using the HELOC. Also, if you consider refinancing your primary mortgage, having a HELOC can complicate the process, potentially requiring you to pay off or close the HELOC as part of the refinancing process or factor the HELOC balance into the assessment of your overall debt-to-income ratio. It’s crucial to carefully evaluate your financial goals and ability to manage additional debt before opening a HELOC, seeking advice from a financial advisor or mortgage specialist if needed.

What is the bad side of HELOC?

While a HELOC can provide convenient access to funds, there are potential drawbacks to consider. One of the main risks is that HELOCs are secured by your home equity, meaning that if you fail to make payments, you could risk losing your home through foreclosure or power of sale. Additionally, HELOCs often have variable interest rates, which can fluctuate over time and lead to unpredictable payment amounts. You might also be tempted to overspend or accumulate debt, as the revolving nature of a HELOC allows for continuous borrowing up to the credit limit. This can result in financial strain and difficulty in repaying the borrowed funds, especially if your home’s value decreases or if there are changes to your financial circumstances. Closing costs and fees associated with opening and maintaining a HELOC can also add to the overall cost of borrowing. It’s important to carefully weigh the potential risks and benefits of a HELOC and to borrow responsibly within your means.

HELOCs can still be a valuable financial tool when used responsibly and prudently, but it’s important to consider it very carefully before taking one on. If you’re struggling with debts and can’t make your monthly mortgage payments, the sooner you address it, the better. At Spergel, the ‘get rid of debt’ people, we will review your financial circumstances and help you to find an appropriate debt relief solution – book your free consultation today.

What to read next

• What happens when you default on a mortgage in Canada?
• Mortgage renewal: what should I do?
• What happens if you can’t pay your mortgage in Canada?
• Are interest rates going up in Canada?
• Need money now? Here’s your answer to debt relief

What does it mean to default on a mortgage?

Simply put, default occurs when a homeowner fails to meet their mortgage payment obligations as outlined in the mortgage contract. This can happen for various reasons, including financial hardship, job loss, or unforeseen expenses. When a borrower defaults on their mortgage, it triggers a series of legal and financial consequences, potentially leading to actions such as foreclosure, where the lender seeks to take possession of the property and sell it to recover the outstanding debt. Defaulting on a mortgage can have serious implications for the homeowner’s credit rating, financial stability, and emotional wellbeing, making it crucial for borrowers to understand and address any challenges they may face in meeting their mortgage obligations as soon as possible.

What happens when you default on a mortgage in Canada?

When a homeowner defaults on their mortgage in Canada, the lender typically initiates a series of steps to address the situation. The specific process may vary depending on the province or territory in which the property is located, as well as the terms outlined in the mortgage agreement. However, there are several common steps that lenders typically take in response to mortgage default:

Missed payments

If you make your mortgage payments in full each month, your lender will not need to take any action against you. The moment this begins to slip and you have a missed payment is when things can begin to go wrong. It could be a mistake, or it could be that you’re feeling the pinch, but once you’ve missed a payment, your lender will usually wait a grace period of around 15 days before you’ll need to pay a late fee. If you spot the mistake and are able to find the funds to make your mortgage payment, the slip will often be ignored. If, however, your mortgage payment continues to go unpaid, your lender will likely reach out to discuss the scenario. At this point, communication and transparency with your lender is everything. Burying your head in the sand and ignoring calls will only make the problem worse further down the line.

Notice of default

The first course of action for lenders is often to issue a notice of default to the homeowner, informing you of your missed payments and providing a specified period to remedy the situation. If you fail to address the default within this timeframe, your lender might proceed with legal action to enforce the mortgage contract. Should you miss a couple of payments in a row, the situation will begin to get more serious. Demand letters are formal requests for the missing funds. In this instance, you should reach out to your mortgage lender to discuss potential options, like a payment plan. If the lender does not receive a response to their demand letter, they could pursue legal action against you.

Power of sale or foreclosure

A common action for lenders in the event of mortgage default is foreclosure, or power of sale, depending on your province of residence. Foreclosure is a legal process through which your lender seeks to take possession of your property and sell it to recoup the outstanding debt. The proceeds from the sale are used to satisfy the mortgage debt, with any surplus returned to the homeowner. In Ontario, a power of sale is used – unlike foreclosure, power of sale allows your lender to sell the property without taking ownership legally, making it a quicker process. When they sell the property, the lender recovers the mortgage payment owed, as well as any interest and fees. If the sale doesn’t cover the outstanding mortgage amount, you’ll need to pay the difference.

Additional consequences

In addition to foreclosure, lenders may also pursue other legal remedies to recover the outstanding debt, such as obtaining a judgement against the homeowner or placing a lien on the property. These actions can have serious implications for your credit rating and financial wellbeing, potentially making it difficult to secure credit or obtain financing in the future. In addition, defaulting on your mortgage can have an emotional impact. The thought of losing your home and facing financial loss can be stressful and anxiety-inducing, in some cases leading to mental health problems.

How to avoid defaulting on your mortgage

The concept of defaulting on your mortgage can seem intimidating, but no matter how bad you might feel your situation is, there is always a solution. To mitigate the risk of mortgage default, it’s essential to be proactive in managing your finances and addressing any challenges that may arise. This may involve seeking assistance from a Licensed Insolvency Trustee (the only professionals in Canada legally able to file all forms of debt relief), exploring options for refinancing or loan modification, or accessing available support programs or resources. At Spergel, we have been helping Canadians for nearly 35 years, and we can share invaluable advice and insights, help to mediate discussions with your lender, and guide you towards the best solution for your circumstances.

What happens when you default on a mortgage in Canada? FAQs

Here are some of the most common questions we receive about what happens when you default on a mortgage in Canada:

What happens in Canada if you don’t pay your mortgage?

In Canada, if you fail to pay your mortgage, it can lead to serious consequences. Initially, the lender may issue a notice of default, providing you with a specified period to rectify the missed payments. If the default is not addressed within this timeframe, the lender may initiate legal proceedings, which can ultimately result in foreclosure or a power of sale. Both are legal processes through which the lender seeks to sell the property to recover the outstanding debt. Additionally, your credit rating may be adversely affected, making it challenging to secure credit or obtain financing in the future. Defaulting on a mortgage in Canada can have significant financial and legal implications, underscoring the importance of addressing any difficulties in meeting mortgage obligations promptly and proactively.

What happens when you walk away from a mortgage in Canada?

Walking away from a mortgage in Canada, also known as strategic default, is a complex decision with significant consequences. When you choose to walk away from your mortgage, you stop making payments and effectively surrender the property to your lender. This action can lead to foreclosure proceedings, where the lender seeks to take possession of the property and sell it to recover the outstanding debt. Additionally, your credit rating may be severely impacted, making it difficult to obtain credit or financing in the future. While walking away from a mortgage may provide temporary relief from financial obligations, it’s a decision that should be carefully considered, taking into account the long-term consequences and potential legal implications. Consulting with a reputable Licensed Insolvency Trustee can help you to understand your options and make informed decisions regarding your mortgage obligations.

Are mortgages recourse loans in Canada?

Yes, mortgages in Canada are typically recourse loans. This means that in the event of default, the lender has the right to pursue legal action against the borrower to recover any outstanding debt not covered by the sale of the property. In other words, if the proceeds from selling the property are not sufficient to fully repay the mortgage debt, the lender can seek additional compensation from the borrower’s other assets or income. Recourse loans provide lenders with added security, as they have recourse to the borrower’s personal assets beyond the mortgaged property. However, it’s worth noting that there are certain exceptions and variations in recourse laws across different provinces and territories in Canada, so borrowers should consult legal experts for specific guidance regarding their mortgage obligations.

Defaulting on a mortgage in Canada can have far-reaching consequences for homeowners, both financially and emotionally. By understanding the implications of mortgage default and taking proactive steps to address any financial challenges, you can better protect yourself and your family from the potential risks associated with default. If in doubt, book a free consultation with Spergel, the ‘get rid of debt’ people.

What to read next

• How long after a consumer proposal can I get a mortgage?
• Mortgage renewal: what should I do?
• What happens if you can’t pay your mortgage in Canada?
• The 47 year mortgage – what does it mean for you?
• Defer mortgage payment: a guide to deferrals

In the article, Rob Kilner, providing bankruptcy and debt relief services for Spergel in Barrie, Aurora, and London, addresses the financial realities confronting younger Canadians. He emphasizes the need for realistic expectations in the pursuit of home ownership, pointing out the discrepancy between salaries and the escalating costs of homes, suggesting that renting or sharing living spaces might be a more feasible option for many. Rob’s commentary highlights a generational gap in opportunities, suggesting a tougher climb for the younger demographic in securing their own homes without the compromises their predecessors might not have faced.

Another of our Licensed Insolvency Trustees, Samantha Galea, calls for a shift in the cultural mindset surrounding success and home ownership in the article. She argues that owning a home is not the sole marker of success and may not be attainable for everyone under current economic conditions. Samantha’s advice is pragmatic and rooted in the reality that striving beyond one’s means for home ownership can lead to worse financial predicaments.

This dialogue emerges in the context of findings from various surveys and reports, indicating that a significant portion of young Canadians are willing to make substantial sacrifices to buy homes. These sacrifices, however, often lead to compromises that may not align with long-term satisfaction or financial stability. The challenges are further compounded by a market that increasingly favours wealth accumulation through home ownership, leaving renters at a disadvantage.

Spergel’s contributions to this discussion are invaluable, offering a grounded perspective on the financial viability of home ownership for young Canadians. By advocating for a more flexible approach to defining success and securing housing, Spergel underscores the importance of financial health and realistic goal-setting in today’s real estate market. Our insight not only aids Canadians in making informed decisions, but also encourages a broader understanding of the evolving dynamics of real estate in Canada.

You can read the full article at BNN Bloomberg.

If you’re feeling concerned about your own financial circumstances, or are struggling to pay your housing costs, you could benefit from a free consultation with an experienced Licensed Insolvency Trustee at Spergel. Our experts will take the time to review your financial circumstances, help you to assess your options, and guide you on the journey to debt relief. We’re the ‘get rid of debt people’, and we’ve been doing this for almost 35 years, so you’re in great hands. Reach out today.

What to read next

• How to avoid becoming house poor
• Household debt in Canada: what to do if yours is high
• Rent assistance: what are my options?
• How much should you spend on rent in Canada?
• Can I declare bankruptcy and keep my house?

What impact does a consumer proposal have on your credit rating?

When it comes to taking out a mortgage, all lenders will review your credit score while assessing your application. If you have taken out a consumer proposal, this can affect your ability to have a successful mortgage application. Put simply, if you have or recently completed a consumer proposal, you will be considered a credit risk. Even if you have completed your consumer proposal, you still have a history of being unable to make debt repayments. Because of this, generally speaking, conventional lenders in Canada will be unlikely to approve a mortgage application unless you have at least two years‘ clean credit history following completion of your consumer proposal. If you do have two years’ clean history, you will still need a healthy downpayment of 20%, and evidence that you have been working to rebuild your credit score. You may, however, be able to secure a mortgage from a specialist lender earlier than this. They will assess your situation and the potential risk involved. A reputable Licensed Insolvency Trustee will advise you on the best course of action for your unique situation.

How long after a consumer proposal can I get a mortgage?

If you go through a conventional mortgage lender, this will likely take at least two years, or less if you find a suitable alternative lender. For this reason, it really is dependent on your lender, although most will want you to turn around your credit score before lending to you. If you are able to get a mortgage or even have the financing for a mortgage renewal approved, you can do so even before your consumer proposal is completed. The only condition is that you will need to use your proceeds to pay off your consumer proposal. The good news is that you can therefore apply for a mortgage whenever you like, even if you are in the midst of your consumer proposal. Just bear in mind that you may need to show evidence of your attempts to rebuild your credit score. Your mortgage rate while in a consumer proposal will also likely be higher than a conventional mortgage. The interest rate could, however, be negotiated when it comes to a mortgage renewal.

How can you speed up getting a mortgage after a consumer proposal?

There are a few actions you can take to increase your chances of getting a mortgage during a consumer proposal before you go on to enjoy life after a consumer proposal. These include the following:

• Completing your consumer proposal by paying it off in its entirety
• Saving up a 20% downpayment for a property
• Working with a private lender over a conventional lender
• Working to rebuild your credit score by taking (and repaying) credit and cleaning up any reporting errors

Can you refinance your mortgage to pay off your consumer proposal?

You absolutely can, and often it is the fastest way to pay off a large debt like a consumer proposal. You may wish to take on a larger mortgage to cover both your property amount and the consumer proposal, provided there is sufficient equity in your property to cover the additional loan needed. If you renew your mortgage early, you do need to be conscious of potential prepayment penalties, which may not be helpful alongside your consumer proposal. Lenders will also want to understand why you filed a consumer proposal in the first place to assess the risk of allowing you to refinance. They will also review your credit score to see what you are doing to rebuild it and also to ensure you do not risk falling into further debt. If approved, there are lots of benefits of refinancing your mortgage to pay off your consumer proposal. You can rebuild your credit more quickly, your monthly payments will likely be reduced, and you can apply for credit again – including credit cards – if needed.

How do you refinance to pay off your consumer proposal?

If you decide refinancing is the right move to pay off your consumer proposal sooner, there are a number of steps to take. First of all, your mortgage broker will see if this is a possibility for you. There are a number of variables involved, including your property, any potential equity, and why you needed to file a consumer proposal in the first place. They will also consider your current mortgage, and how close it is to maturity. If refinancing is feasible for you, your broker will share your application with private lenders who may be interested. You will then receive quotes, and you can make a decision. Often, it is quite quick and can be wrapped up in around a month or two. Your Licensed Insolvency Trustee will be able to advise you throughout the process also.

What are the benefits of paying off your consumer proposal early?

There are various advantages of paying off a consumer proposal ahead of time. We have listed the top benefits below:

• You can gain a mortgage more easily
• You can renew your mortgage more easily
• You can work on rebuilding your credit score
• You can gain credit much more easily
• You will have an improved cash flow
• You will gain financial freedom

If you still have questions on ‘how long after a consumer proposal can I get a mortgage?’, you should book a free consultation with a Licensed Insolvency Trustee. At Spergel, we have been helping Canadians file consumer proposals for years, and we are here to help you too. The sooner you reach out, the sooner we can get you back on the path to financial freedom.

What is mortgage renewal in Canada?

When you take on a mortgage in Canada, you will usually be given a set term. Often, this ranges from one to five years. When that term is up, you will be due a mortgage renewal. When you reach this point, you have a few different options:

Renew your mortgage with your current lender

You might wish to renew your mortgage with your existing lender. Often this is the easiest choice – many homeowners might do this without looking into their other options. The issue with this option is that often it is not the most cost effective, and you could realize considerable saving by switching to another lender.

Switch your lender

When it comes to mortgage renewal time, you are free to look into mortgage offers from other lenders. By looking into other options and shopping around, you could find more favourable terms for your mortgage, and ideally a lower interest rate that could save you money.

Pay off your mortgage

If you have the funds, you might choose to repay your mortgage in its entirety when your renewal comes up. Although this is a less common option, it does mean that you secure full ownership of your property once and for all.

Tips for mortgage renewal

There are some important tips you should take into consideration when it comes to mortgage renewal in Canada:

• Start the process early. It is a good idea to make your life less stressful by beginning to look at potential mortgages up to four months before your mortgage term is due to end. Some mortgages even enable you to renew early without having to pay a penalty. If not, you can still begin researching your options and finding which lenders are offering which rates, options, and terms. This way, you will be well prepared and informed to negotiate when you are ready to renew your mortgage.
• Review your financial circumstances. You should look at your finances and your goals. After all, a lot can happen across a mortgage term. You may have lost or gained income, or had changes in your life circumstances. Has anything changed significantly since you took on your mortgage? Review your income, expenses, credit score, and your financial goals for the future. If you are thinking about moving home in the next 5 years, you should factor this into your decision.
• Be ready to renew in the last 30 days of your current mortgage. Legally, your lender has to send you a mortgage renewal statement at least 3 weeks before your current term is up. Usually they will encourage you to renew with them, but ensure you have done sufficient research to know whether or not it is the best mortgage rate for you. If not, you might want to try and negotiate with them.
• Compare mortgage products. If you are considering switching lenders, you might want to consider the things you want to gain from a new mortgage. These include the following:
  • Your monthly budget – can you increase your mortgage payment at all to pay off your principal sooner?
  • Any bonuses or inheritance you might receive to put towards your mortgage. If you think you might, you should investigate the lump sum prepayment options of a new mortgage?
  • Whether or not you might be able to repay your mortgage early – if so, check out the prepayment penalties of any new mortgage product
  • Whether or not you might sell your home or move in the next 5 years. If so, you might want to choose a portable mortgage
• When exploring new mortgage products, you should shop around. Get quotes from lots of different lenders, and compare the mortgage terms, conditions, and interest rates before making a decision. You might want to speak to a mortgage broker to help you.
• Understand the terms of your mortgage. When looking at different products, ensure you carefully review the terms and conditions. Think about details like whether it is a fixed or variable rate, how you are affected by prepayment options, and the amortization period. Carefully review any documents and contracts related to your mortgage renewal, and ensure you understand all of the terms before signing any new agreement.
• Negotiate with lenders. Do not be afraid to try and negotiate with either your current lender or any potential new lenders. Many elements of a mortgage – including the interest rate and repayment terms – might be negotiable, and you do not know until you ask.
• Be mindful of penalties. If you decide to switch to a new lender before your mortgage term ends, you might face prepayment penalties. You should make sure to check these costs, understand them, and factor them into your decision making before committing to a new mortgage.
• Make a decision. Ultimately, your decision will come down to who is offering the best mortgage rate and product. Switching providers often requires more administration, but it will usually give you a better rate. Do not forget that with a new lender, you will need to submit a new mortgage application as the lending criteria is likely quite different to that of your current lender. You might also need to pay additional fees.

What if I am struggling to pay my mortgage?

If you are finding difficulty making your monthly mortgage payments, you are far from alone. With multiple interest rate hikes over the past year, and a rising cost of living, this is an increasingly common situation for many Canadian homeowners. Firstly, it is important to not panic. No matter how bad you might feel your situation is, there is always a solution. You should contact your mortgage lender as soon as you think you might struggle to make a payment. Communication is key, and lenders will do their best to help if you are transparent about your situation and you give them warning. They can offer some solutions like temporary relief on interest payments, or even allowing you a mortgage payment holiday. Although not long term solutions, these might help you to get back on track. If you need more support – like a substantial decrease or even elimination of your unsecured debt – you should book a free consultation with a Licensed Insolvency Trustee. Licensed Insolvency Trustees are the only professionals in Canada legally able to file all forms of debt relief, and so they are well placed to review your circumstances and advise you on your options.

Do mortgages automatically renew Canada?

In Canada, mortgages do not automatically renew at the end of their term. Lenders must legally inform you that your mortgage term is coming to an end in order to allow you to make a decision about your next step. If you do not wish to pay off your mortgage or to switch lenders, you can choose to renew your mortgage with your current lender. This is much simpler than switching lenders. Your current lender will typically mail you a form to complete if you wish for a renewal, which you just need to sign and return. You will continue with the same lender and terms, but the interest rate may well be different depending on the market rates. If you do not take any action, your mortgage will automatically switch to a month to month or ‘lender’s standard rate’ arrangement. Often, this comes with a high interest rate, and so you are best off being proactive and making an informed decision about your mortgage renewal when your term is coming to an end.

Should I renew my mortgage early in Canada?

Whether or not you should renew your mortgage early in Canada is dependent on your unique financial circumstances, your current mortgage, and the associated interest rate. You should think about the following before making a decision:

• Current interest rate – if you can secure a lower interest rate by renewing early, it is likely a good idea
• Mortgage term – if you are near the end of your term and interest rates are favorable, early renewal might not be necessary
• Penalties – you should review your mortgage contract and see if you will incur any penalties for renewing early
• Financial goals – if you plan to stay in your home for a long time, securing a lower interest rate early could save you a lot over the duration of your mortgage
• Rate predictions – if economic forecasts suggest that interest rates will increase significantly in the future, early renewal at a lower rate could be a good move

Ultimately, whether or not you decide to renew your mortgage early in Canada depends on a number of factors. You should weigh up the potential interest you could save against any penalties or fees incurred for renewing early. Ensure you make an informed decision by comparing information from different lenders and seeking out expert advice and guidance.

Got concerns about your mortgage renewal, or feeling worried about making your mortgage payments? Book a free consultation with Spergel for advice on mortgage debt relief. We will review your financial circumstances and help to provide guidance and information on your available options. We have helped over 100,000 Canadians gain debt relief, and we are here to help you too.

What to read next

• What happens if you can’t pay your mortgage in Canada?
• The 47 year mortgage – what does it mean for you?
• Defer mortgage payment: a guide to deferrals
• Second mortgage to pay off debt – is it worth it?
• Mortgage rate increase: how will I afford it?

What is happening with the housing market in Canada?

It is not news to anyone that the Canadian housing market has seen its fair share of fluctuations in recent years. Not only have rental prices been unaffordable for many, especially in cities like Toronto and Vancouver, but mortgages have proved challenging too. Factors like multiple interest rate hikes, economic challenges for the country, and housing price increases have made it difficult for many homeowners to manage their mortgage payments. Thankfully, lenders and financial institutions are probably more understanding and aware of these challenges than they have ever been.

What happens if you can’t pay your mortgage in Canada?

While a missed mortgage payment does not necessarily mean you will lose your home, quick action is required to keep the situation under control. If you continue to miss your mortgage payments without communicating or working with your lender, they could begin the foreclosure process. Foreclosure is a legal process that allows the lender to regain possession over your property and to sell it in order to recover the debt that is owed to them. Foreclosure can have major consequences – you can face negative impacts to your credit score, incur legal costs, and ultimately lose your home unwillingly. It happens when mortgage payments are not made, or whenever the agreements of the mortgage are not met. The homeowner gives up all their rights to the property, often including equity where applicable. Lenders are often hesitant to begin this process as it can be costly and timely. Instead, they will try to work with you on a repayment arrangement where possible. While missed mortgage payments can happen, there is typically a 15 day grace period. Although lenders are permitted to take legal action after the 15 day grace period, this is rare. The following sequence of events will usually occur:

• You will pay late fees. These will be indicated in the terms related to your mortgage when you took it on. These fees will usually vary from between $25-50, and will be charged as soon as the payment has been missed.
• Your credit score will be impacted. Your score is likely to drop – after 30 days, your missed payment will be reported to Canada’s two primary credit bureaus, Equifax and TransUnion. The more overdue your mortgage payment is, the greater the impact on your credit score. Late payments will remain on your credit report for up to seven years.
• You might default. If your missed payment goes past the 30 day point, your mortgage will go into default. This will have a greater impact on your credit score, and can lead to foreclosure.
• You could lose your home. Mortgages are secured loans, which means your home serves as the collateral for your loan. When lenders do not receive their payments as agreed in the mortgage contract, they are legally able to reclaim the property and sell it to recoup their loss. This is known as foreclosure.
• Foreclosure – contrary to popular belief, foreclosure does not actually take place in every province. In Alberta, British Columbia, Manitoba, Nova Scotia, Quebec, and Saskatchewan, judicial sale (or foreclosure will occur). It’s a long process that goes through the court which usually results in the title of the property being transferred to the lender, who can keep all proceeds from the sale.
• Power of sale – in Newfoundland, New Brunswick, Ontario, and Prince Edward Island, the power of sale process is used instead of foreclosure. The power of sale process usually starts with the lender sending a notice that gives the homeowner 35 days to get current on any missed payments. Provided you get back on track, the process will stop aside from relevant fees and an impact on your credit score. Otherwise, the transfer of ownership to the lender via power of sale will begin. Power of sale does not need to go through the court, and as a result it is a much faster process than foreclosure.

What should you do if you can’t pay your mortgage in Canada?

If you find yourself in a scenario where paying your mortgage is proving difficult, the first thing to do is not panic! Although it might seem like the first thing you want to do, there is likely a very simple solution to your circumstances. In fact, no matter how bad you feel your financial situation may be, there is always a way out of it. At Spergel, our experienced Licensed Insolvency Trustees have been helping Canadians gain debt relief for over thirty years, and it is likely we have seen circumstances similar to yours. There are a few steps we recommend taking if you are struggling to pay your mortgage:

Speak to your lender

First and foremost, your lender is going to be the one who might be able to help you initially. As soon as you think you might not be able to pay your mortgage, you should contact your lender immediately. Lenders and financial institutions in Canada are generally open to helping homeowners facing financial hardship; especially if they think they can work on a plan to gain repayment as quickly as you can feasibly make it. They could offer a variety of solutions, for instance:

• Temporary mortgage payment deferral (or a mortgage payment holiday) – this allows you to defer mortgage payments for a fixed period of time. Payment deferrals have the intention of giving you some time to get on top of your finances once again.
• Reduced interest rates – if you are facing a financial crisis which you can support with evidence, your lender may agree to negotiate a temporary reduction in your interest rate to temporarily reduce your overall payments and take off some of the pressure.
• Loan modification – if you require longer term support, your lender may be willing to modify the terms of your mortgage to either extend your mortgage term, or add any missed payments you might make to the end of the mortgage.
• Refinancing – in some instances, your lender may help you to refinance your mortgage. This could result in a lower interest rate or a longer repayment term to reduce your monthly payments in order to make your monthly payments more manageable.

Seek out Government Assistance

The Canadian Government has a number of programs in place to help homeowners who might be struggling to make their mortgage payments. An example of this was the Canada Emergency Response Benefit (CERB). CERB was designed to offer financial support to individuals who had reduced income during the global pandemic. Although CERB is no longer available, the Government offers other programs and initiatives for support. You can use the Government’s Benefits Finder to see what support you might be eligible for.

Consider selling or downsizing your home

If you are finding it difficult to make your mortgage payments on time and do not see that your finances will improve in the future, you might wish to consider selling your home or downsizing to a more affordable property. Selling your home can help you to pay off your existing mortgage, and relieve you of having to make future mortgage payments. Although nobody wants to lose their home, it can help you to avoid consequences like foreclosure, and can help you to regain control over your finances.

Speak to a Licensed Insolvency Trustee

If your finances feel squeezed across the board, you might want to look at your debt relief options. By substantially reducing or completely eliminating your unsecured debts, you could find your finances in a much better place. This in turn could mean your mortgage payments are much easier to make each month. Licensed Insolvency Trustees are the only professionals in Canada legally able to file all forms of debt relief. At Spergel, our Licensed Insolvency Trustees treat every individual with compassion and understanding. We will review your financial circumstances, and walk you through your options for debt relief, from debt restructuring to consumer proposals and bankruptcy. 

How late is a mortgage payment before it is considered missed?

Most lenders in Canada will allow a 15 day grace period before your mortgage payment is officially considered missed. Only once the 15 days have passed is it late, and you likely will not owe late fees until after this period. Should you miss your payment for 30 days after the due date, your lender will report the missed payment to the credit bureaus, and the consequences of a missed payment begin to kick in.

How many mortgage payments can you miss before foreclosure in Canada?

Foreclosure is a lengthy and costly process. For this reason, lenders will not rush to initiate the process and it is not usually triggered as soon as you miss a payment. When you miss payments, you will probably receive notices from your lender after 1 month, 2 months, and 3 months. If your lender still does not receive a response after 3 months, they will likely begin the foreclosure process. That said, it can happen sooner. If you live near a Supreme Court registry, your lender will need to begin proceedings there, and you will receive a document called a petition for foreclosure.

Can I walk away from my mortgage in Canada?

Lenders in Canada must allow homeowners some time to try and tackle any mortgage payments they are struggling to make, instead of simply allowing them to walk away from their mortgage. Any mortgage shortfalls become unsecured debts once the sale of a property has been finalized. Learn more about what to do if you are considering walking away from your mortgage.

What is the average mortgage debt in Canada?

According to TransUnion’s Q1 2023 Credit Industry Insights report, the average amount of mortgage debt owed by Canadians is a staggering $349,178. Considering the benchmark price of a house in Canada is $717,000, it is likely that the average mortgage debt is only going to increase in the future.

Still worried about what happens when you can’t pay your mortgage in Canada? At Spergel, we understand it can be a daunting experience. That is why we are on hand to help explain your options and offer support during challenging times. Book a free consultation with one of our experienced Licensed Insolvency Trustees to get started on your journey to a pathway to debt freedom today.

What to read next

• The 47 year mortgage – what does it mean for you?
• Defer mortgage payment: a guide to deferrals
• Second mortgage to pay off debt – is it worth it?
• Mortgage rate increase: how will I afford it?
• My mortgage is too expensive – what are my options?