What happens if you miss one mortgage payment in Canada?

If you miss one mortgage payment, your lender will typically charge a late fee and contact you within a few days. Most lenders have a 15 to 30 day grace period during which you can make the payment plus any late fee without it being reported to the credit bureaus. However, policies vary by lender — some report late payments to credit bureaus after 30 days, which can drop your credit score by 60 to 100+ points. Contact your lender immediately if you know you will miss a payment.

Can a bank foreclose after one missed payment?

No. Canadian lenders will not begin foreclosure or power of sale proceedings after a single missed payment. These processes are expensive and time-consuming for lenders, so they are a last resort after multiple missed payments and failed attempts to resolve the situation. In practice, most lenders will not start legal proceedings until payments are 3 to 6 months in arrears and all other options have been exhausted. The legal process itself takes months to years.

How does a missed mortgage payment affect my credit score?

A mortgage payment reported as 30+ days late to the credit bureaus can drop your credit score by 60 to 100+ points or more, depending on your starting score. The higher your score was before the missed payment, the larger the drop. The late payment stays on your credit report for 6 to 7 years. Multiple missed payments cause progressively more damage. A mortgage late payment has a bigger credit impact than a missed credit card payment because mortgages are the largest and most important credit obligation.

What is the difference between power of sale and foreclosure in Canada?

Power of sale is used in most Canadian provinces (Ontario, Alberta, BC, and others) and allows the lender to sell the property without court supervision after proper notice. The process is faster (typically 3 to 6 months). Foreclosure is a court-supervised process primarily used in some provinces where the lender takes ownership of the property before selling it. In practice, most defaulting borrowers in Canada face a power of sale rather than a full foreclosure.

What should I do if I cannot make my mortgage payment?

Contact your lender before you miss the payment. Lenders have hardship programs and are more willing to help proactive borrowers. Options include: payment deferral (add missed payments to mortgage balance), temporary amortization extension (lower monthly payments), switching to interest-only payments temporarily, or accessing prepayment holidays if your mortgage has built-in flexibility. Under the Canadian Mortgage Charter, federally regulated lenders are expected to offer these relief measures without charging fees.

Missed Mortgage Payment in Canada: What Happens & What to Do (2026)

Missing a mortgage payment is stressful, but it is important to understand what actually happens — the consequences are real but the process is more gradual than most people fear. Here is the timeline, the impact, and what to do at each stage.

Timeline: what happens after a missed payment

Time After Missed Payment	What Happens
Day 1–15	Grace period at most lenders. Late fee may apply. No credit bureau reporting
Day 15–30	Lender contacts you by phone, email, or letter. Payment demand issued
Day 30+	Late payment may be reported to credit bureaus (Equifax, TransUnion). Credit score impact begins
Day 60+	Second missed payment. Lender escalates to collections department. Formal demand letters sent
Day 90+	Third missed payment. Lender begins reviewing legal options. May issue a formal notice of default
3–6 months	Lender may initiate power of sale or foreclosure proceedings (varies by province)
6–12+ months	Legal process concludes. Property may be sold to recover the debt

Late fees and interest charges

Lender Type	Typical Late Fee	Additional Interest
Big Six banks	Varies — some charge a percentage of the missed payment, some a flat fee	Full interest continues to accrue on the unpaid balance
Monoline lenders	Varies by lender	Full interest continues
Credit unions	Often more flexible on fees	Full interest continues
Private lenders	Higher penalty rates (may charge default interest of 2%–5% above contract rate)	Default interest may be significantly higher

Note: Under the Canadian Mortgage Charter, federally regulated lenders should not charge fees for accessing hardship relief measures. However, late fees on missed payments may still apply if you do not contact the lender and arrange relief.

Credit score impact

Scenario	Credit Score Impact	How Long It Stays
Payment made within grace period	None (if lender does not report)	Not reported
30 days late (reported)	−60 to −100+ points	6–7 years
60 days late	−80 to −130+ points (cumulative)	6–7 years
90+ days late	−100 to −150+ points (cumulative)	6–7 years
Power of sale / foreclosure	−150 to −200+ points	6–7 years
Mortgage default (shortfall)	Major impact — may approach −200+ points	6–7 years

A single 30-day late mortgage payment can take 12 to 24 months of perfect payment history to recover from, and the mark stays on your report for 6 to 7 years. Multiple missed payments compound the damage.

Power of sale vs foreclosure by province

Province	Process	Typical Timeline	Court Supervised?
Ontario	Power of sale	3–6 months after notice (35-day redemption period)	No (unless disputed)
British Columbia	Court-ordered sale (similar to foreclosure)	6–12+ months	Yes
Alberta	Foreclosure (judicial)	6–12+ months	Yes
Quebec	Power of sale (60-day notice)	3–6 months	No (unless contested)
Manitoba	Power of sale	3–6 months	No
Saskatchewan	Judicial sale	6–12 months	Yes
Atlantic provinces	Power of sale or foreclosure (varies)	3–12 months	Varies

How power of sale works (Ontario example)

Default — Borrower misses multiple payments (typically 3+)
Notice of Sale — Lender issues a Notice of Sale under Mortgage, giving the borrower 35 days to pay all arrears plus costs
Redemption period — Borrower has 35 days to pay the full arrears and reinstate the mortgage
Property listing — If not redeemed, lender lists the property for sale (must sell at fair market value)
Sale proceeds — Proceeds pay off the mortgage, legal costs, and selling expenses. Any surplus goes to the borrower
Shortfall — If the sale does not cover the debt, the lender can pursue the borrower for the difference (deficiency)

What to do if you cannot make your payment

Before you miss a payment

Action	Details
Contact your lender immediately	Lenders are far more accommodating when you call before missing a payment
Request a payment deferral	Missed payment(s) added to mortgage balance. No penalty under the Mortgage Charter
Request an amortization extension	Extends your amortization to reduce monthly payments. No stress test required
Switch to interest-only payments	Temporary reduction — you stop paying down principal
Use prepayment credits	If you have made extra payments in the past, some lenders allow payment holidays

After you have missed a payment

Action	Details
Pay the arrears immediately	If you can come up with the money within the grace period, the impact may be minimal
Call the lender	Explain your situation. Ask about hardship programs
Document your situation	Job loss, medical emergency, divorce — evidence of the cause helps when negotiating with the lender
Contact a mortgage broker	If your current lender is not helpful, a broker may be able to arrange refinancing with a different lender
Contact a credit counsellor	Non-profit credit counselling agencies (e.g., Credit Counselling Society) offer free advice

If you are facing multiple missed payments

Option	When It Makes Sense
Sell the property	If you cannot afford the payments long-term, selling on your own terms gets a better price than power of sale
Refinance	If you have equity, refinancing (possibly with a B-lender) can consolidate debts and reduce payments
Consumer proposal	If you have overwhelming debt beyond just the mortgage, a consumer proposal can restructure all debts
Bankruptcy	Last resort — you may lose the property but discharge unsecured debts

What lenders must do under the Mortgage Charter

For borrowers at federally regulated lenders (Big Six banks and other OSFI-regulated institutions):

Lender Obligation	Details
Contact you early	Must reach out proactively when you miss a payment
Offer relief options	Amortization extensions, payment deferrals, interest-only periods
No fees for relief	Cannot charge fees for accessing hardship measures
No negative credit reporting for relief	Using relief programs should not harm your credit (as long as modified payments are made)
Dedicated support teams	Must have staff trained to help borrowers in hardship

Preventing missed payments

Strategy	How It Helps
Automate mortgage payments	Set up automatic withdrawal from your chequing account
Build a 3-month emergency fund	Cover mortgage payments during temporary income disruptions
Align payment date with payday	Have the mortgage payment coincide with when you are paid
Choose accelerated bi-weekly	Aligns with bi-weekly pay schedules and builds equity faster
Avoid maxing out affordability	If a rate increase or income decline would make payments unmanageable, borrow less

The bottom line

Missing a mortgage payment is not an immediate crisis — you will not lose your home overnight. But the consequences are real and escalate over time: late fees, credit score damage, and eventually power of sale. The single most important thing you can do is contact your lender before you miss a payment. Under the Mortgage Charter, federally regulated lenders are expected to offer meaningful relief options. The earlier you act, the more options you have.