Falling behind on your mortgage is stressful, and it’s easy to put off dealing with it. But the earlier you act, the more options you have. If you have equity in your home, a private mortgage may be able to pay off the arrears and give you time to get stable.

Act early

Every month behind adds missed payments, and often fees and legal costs. Lenders and courts are generally more flexible early on. If you’ve missed a payment, or know you’re about to, start getting advice now.

How foreclosure works in Alberta, briefly

In Alberta, a lender can’t simply take your home. Foreclosure goes through the courts, and there are steps and time periods along the way. Alberta also has some borrower protections that differ from other provinces. The details depend on your mortgage and your situation, so speak to a lawyer as soon as you receive a demand letter or court documents.

How a private mortgage can help

If there’s enough equity, a private mortgage can:

  • Pay off the arrears and bring your current mortgage up to date
  • Replace your current mortgage entirely if your lender has called the loan
  • Cover legal costs and fees that have built up
  • Give you a set period, often a year, to stabilize and plan your next step

What lenders will want to know

  • Why you fell behind, and whether that cause is resolved, such as a new job or recovery from illness
  • How you’ll make the new payments
  • Your exit plan, whether refinancing later or selling. See your exit strategy.
  • The amount owing, from a current payout or arrears statement

When selling is the better choice

Sometimes the honest answer is that a private mortgage would only delay the problem. If the payments aren’t sustainable, selling on your own terms usually protects more of your equity than a forced sale. A good broker will say so.

Also behind on property taxes?

Property tax arrears are common alongside mortgage arrears. Both can often be handled in the same private mortgage. See paying tax arrears with a private mortgage.

Steps to take this week

  1. Gather your documents: mortgage statements, any letters from your lender, and your property tax notice.
  2. Call your lender to understand exactly what’s owed and their deadlines.
  3. Talk to a lawyer if you’ve received legal documents.
  4. Talk to a licensed mortgage broker about your refinancing options.

Speed matters here. See how fast a private mortgage can close.

This article is general information, not financial or legal advice. Lender requirements, rates and fees change and depend on your situation.