Two missed payments. Then a phone call from the bank. Then a letter you don’t want to open. If that’s where you are right now, take a breath — being in mortgage arrears is a fixable situation, and you have more options than the bank’s collections department will tell you about. The worst move is waiting and hoping it resolves itself. The best move is getting ahead of it with a plan.

At Matrix Mortgage Global (Canada’s Mortgage Company, Lic# 11108), we work with Ontario homeowners every week who are behind on payments and don’t know where to turn. Before you do anything else, book a call with Shawn Allen Book now — a 20-minute conversation can map out your options while you still have all of them. Then read on, because understanding how arrears actually work changes everything about how you handle them.

Mortgage In Arrears What To Do: What does it mean to be in mortgage arrears in Canada?

Mortgage arrears means you have missed one or more scheduled mortgage payments and the amount owing is now past due. In Canada, lenders typically report arrears to credit bureaus once you’re 30 days late, and most lenders begin formal collections — including legal notices — after 90 days of non-payment.

The terminology matters, so let’s be precise. A “missed payment” is a single late instalment. “Arrears” is the cumulative past-due amount sitting on your mortgage — it could be one payment or six. Lenders track this carefully, and once you cross 30 days late, your credit report takes a hit that can linger for six years.

According to CMHC’s most recent Mortgage Industry Data report, mortgage arrears in Canada remain historically low — around 0.15% of mortgages are 90+ days delinquent. That sounds reassuring until you realize it means roughly one in every 650 mortgage holders is in serious trouble at any given time. If you’re reading this, that statistic is probably not comforting. What should be comforting is that the vast majority of homeowners in arrears who act early keep their homes.

The three stages of arrears (and what your lender can do at each)

• Days 1–30: Late fees apply. Your lender may call or send a reminder. Your credit report gets flagged. This is the easiest stage to fix.
• Days 31–90: Formal collections begin. You’ll receive written notices. Your lender can demand the full arrears amount immediately. Your credit score drops significantly.
• 90+ days: The lender can begin power of sale proceedings. In Ontario, this is a legal process that can ultimately result in your home being sold — but it takes months, and it can be stopped at almost any point if you act.

Here’s the key insight most homeowners miss: lenders don’t want your house. They want their money. Power of sale is expensive and slow for them. If you present a credible plan to bring the mortgage current, most lenders will work with you — especially if that plan comes through a mortgage professional rather than a desperate phone call.

What should you do first when you’re behind on your mortgage?

The first thing to do when you’re behind on your mortgage is contact your lender before they contact you — and simultaneously speak to an independent mortgage professional who can assess your full financial picture. Early communication keeps you in control; avoidance hands control to the lender’s collections team.

Here’s a practical sequence:

Step 1: Add up exactly what you owe

Not just the missed payments — the arrears total, the late fees, and any legal costs if notices have been sent. You need the real number before you can solve for it.

Step 2: Call your lender’s collections department

Ask three questions: What is my exact arrears balance? What payment arrangements would you accept? Is there a deadline before further action? Get names, dates, and reference numbers for every conversation.

Step 3: Talk to an independent mortgage professional

Your bank can only offer you the bank’s solutions. An independent broker like Shawn Allen at Matrix Mortgage Global can look at your equity, your income, and your entire debt load and find options your lender will never mention — including restructuring, refinancing, or our H.E.L.P. program.

Step 4: Don’t take on new high-interest debt to catch up

This is the trap. Payday loans, credit card cash advances, and high-interest “rescue” loans to cover arrears usually make the problem worse within six months. You need a structural fix, not a patch.

What is H.E.L.P. and how does it help homeowners in arrears?

H.E.L.P. (Home Equity Loan Program) is Matrix Mortgage Global’s flagship program that lets homeowners access the equity they’ve already built in their home to clear arrears, consolidate high-interest debt, and reset their monthly cash flow — without selling the property.

Here’s why this matters when you’re in arrears. Most homeowners in this situation are equity-rich but cash-poor. They’ve paid down a mortgage for years, the home has appreciated, and yet they’re drowning in monthly obligations. H.E.L.P. converts that trapped equity into working capital and breathing room.

A simple worked example

Say your home in the GTA is worth $900,000 and your existing mortgage balance is $520,000. That leaves roughly $380,000 in equity. Now suppose you’re $18,000 behind on the mortgage, carrying $40,000 in credit card balances at 22% interest, and juggling a car loan and a line of credit. Every month is a scramble.

Through H.E.L.P., we arrange a $125,000 home equity solution that:

• Clears the $18,000 in mortgage arrears immediately, stopping collections and late fees
• Pays off the $40,000 in high-interest credit cards, eliminating roughly $9,000/year in interest
• Consolidates the car loan and line of credit into one predictable payment
• Leaves cash reserve for the unexpected

The outcome: one payment instead of five, no more collections calls, a mortgage that’s current, and monthly cash flow that finally works. You keep your home, your equity continues to grow, and you’ve stopped the bleeding — all without selling in a panic.

What are all the options for dealing with mortgage arrears?

The main options for resolving mortgage arrears in Ontario are: negotiating a repayment plan with your lender, refinancing or restructuring through a mortgage professional, accessing home equity via a program like H.E.L.P., filing a consumer proposal or bankruptcy as a last resort, or selling the home on your own terms before the lender forces a sale.

Let’s rank them from best to worst for most homeowners:

1. Refinance or restructure (usually the best option)

If you have equity, refinancing can pay out the arrears, consolidate debts, and lower your total monthly outflow. This is where H.E.L.P. fits, and it’s the option that preserves both your home and your credit standing going forward.

2. Repayment plan with your lender

Lenders will often accept a catch-up schedule spread over 3–12 months. It’s worth asking, but it only works if your underlying cash flow problem is solved. If you’re behind because your expenses exceed your income, a repayment plan just delays the crisis.

3. Consumer proposal

A Licensed Insolvency Trustee can negotiate to reduce unsecured debts, which frees up money for the mortgage. It damages your credit for years, but it’s far better than losing your home.

4. Selling on your terms

If the numbers genuinely don’t work, selling voluntarily — with time to prepare, stage, and maximize price — beats a forced power of sale every time. You control the timeline and protect more of your equity.

5. Bankruptcy

The last resort. It may discharge unsecured debts, but the mortgage still needs to be paid or the home will be sold. Talk to a professional before this becomes your only choice.

Can you get a mortgage when you’re in arrears or have bad credit?

Yes — you can get a mortgage while in arrears or with damaged credit, particularly if you have significant home equity. Alternative and private lending channels in Ontario specialize in exactly these situations, and equity-based solutions like H.E.L.P. are designed for homeowners that traditional banks have already declined.

This is where working with an independent broker matters enormously. Banks apply rigid credit score cutoffs. Matrix Mortgage Global works with a wide range of lenders and structures, and our focus is your equity position and your ability to stabilize — not just a three-digit score. Self-employed homeowners, newcomers to Canada, and people recovering from a financial setback all get real solutions here, not automatic rejections.

According to Bank of Canada data, household debt-to-income ratios in Canada remain near record highs above 175%, which means millions of homeowners are one unexpected expense away from arrears. You are not alone in this, and you are not unworthy of help because of it.

How do you protect your credit while resolving arrears?

To protect your credit while resolving arrears, bring the account current as fast as possible, avoid new credit applications, keep every payment on time going forward, and get any arrangement confirmed in writing. Payment history is the single largest factor in your credit score, so stopping the damage matters more than reversing it overnight.

Practical steps:

• Get your free credit reports from Equifax and TransUnion to see exactly what’s reported
• Once arrears are cleared, request that your lender update the account status
• Keep utilization on any remaining credit cards below 30%
• Don’t close old accounts — length of history helps
• Revisit your credit in 6–12 months; scores recover faster than most people expect once payments are consistent

One more thing: arrears are a cash-flow problem, not a character flaw. The homeowners who recover fastest are the ones who ask for help early and take action instead of hiding. That’s a decision, not a personality trait.

Frequently Asked Questions

How long before a lender takes action on mortgage arrears in Ontario?

Most Ontario lenders begin formal collections after 30 days and can initiate power of sale proceedings after 90 days of non-payment. However, the full legal process takes months, and it can be stopped at virtually any stage if you bring the mortgage current or reach a firm arrangement with the lender.

Can I refinance my mortgage if I’m already in arrears?

Yes. If you have sufficient home equity, refinancing or a home equity solution like Matrix Mortgage Global’s H.E.L.P. program can pay out the arrears and consolidate debts. This is often the fastest way to stop collections while keeping your home and improving monthly cash flow.

Will being in arrears ruin my credit forever?

No. Arrears stay on your credit report for up to six years, but their impact fades as you rebuild positive payment history. Most homeowners see meaningful score recovery within 12–24 months of consistent on-time payments.

Should I sell my home to get out of arrears?

Selling should be a last resort, not a first reaction. If you have equity, solutions like H.E.L.P. let you clear arrears and reset your cash flow without selling — preserving your home and the equity you’ve built. Selling voluntarily is still better than a forced power of sale if the numbers truly don’t work.

Do I need good credit to qualify for H.E.L.P.?

Not in the traditional sense. H.E.L.P. is an equity-based program, so your home’s value and your equity position carry more weight than a perfect credit score. We assess your full picture — income, equity, and goals — rather than applying a rigid bank cutoff.

What’s the first step if I’ve just missed a payment?

Call your lender to confirm the exact arrears balance, then speak to an independent mortgage professional before the situation escalates. A 20-minute consultation with Shawn Allen at Matrix Mortgage Global can identify your options while all of them are still on the table.

The Bottom Line: Arrears Are a Problem You Can Solve

Being behind on your mortgage feels isolating, but it’s one of the most common situations we handle — and one of the most solvable. The homeowners who come out the other side share three habits: they act early, they get professional advice instead of guessing, and they use their equity strategically rather than burning through high-interest debt to stay afloat.

If you have equity in your home and you’re behind on payments, H.E.L.P. can clear the arrears, consolidate the debt, and turn five stressful payments into one manageable one. You keep the home. You keep the equity. You get your breathing room back.

Ready to get out of mortgage arrears? Book now for your free consultation or call 855-55-FUNDS (855-553-8637). You can also email mortgage@mmgb.ca or visit our office at N103-455 Front St E, Toronto, ON M5A 0G2.

Matrix Mortgage Global — Canada’s Mortgage Company, Lic# 11108. Shawn Allen and our team have helped Ontario homeowners in every financial situation find a path forward. Yours is next.