Knowledge centre
A credible exit identifies who will repay the temporary lender, when, from what verified source and what happens if the first plan fails. “Rates will fall,” “income should improve” or “the property will sell quickly” are assumptions, not ex
Possibly. Alternative/B lenders may consider recent arrears when income, explanation and equity support the file. MIC and private lenders may focus more on equity and exit. The right route depends on how serious the arrears are and how the
Selling can protect equity when the payment is no longer sustainable or refinance costs are too high. Compare the likely net sale proceeds with the cost and probability of a refinance. Get legal advice before accepting an offer when enforce
Power of sale is a lender’s contractual and legal process to sell the mortgaged property after default and required notice. It is not the time to wait for a better rate. The homeowner needs immediate legal advice plus a realistic repayment,
Treat it as urgent. Send it to an Ontario real-estate lawyer and your mortgage broker immediately, verify the deadlines and request a current payout. Do not assume a verbal promise pauses enforcement.
Sometimes. A new lender may pay arrears, taxes and enforcement costs from refinance proceeds if equity, income, credit and property meet policy. The new loan must leave a sustainable payment and enough net proceeds after every fee.
Compare the existing lender’s offer, outside A and B options, amortization changes, debt consolidation, a partial paydown and sale. A lower payment can carry much more lifetime interest, so compare payment relief and total cost together.
Act before maturity. Ask why the renewal was refused and request the payout and deadline. A standard A lender, alternative/B lender, MIC or private lender may assess the file differently. Selling may also protect equity when no sustainable
An approved deferral is different from missing payments without permission. The lender may allow payments to pause temporarily, but interest usually continues and the balance or later payments may increase. Ask how the arrangement will be r
Contact the lender or mortgage administrator before the payment fails, explain the cause and ask for the available hardship options in writing. Then review the full household budget and property equity with a mortgage broker. Waiting remove