Having Trouble Making Payments?

2016-05-12 | 14:15:41

We all go through stages in our lives when money is a little tight. So what should you do if you find yourself in this situation? Here are two breakdowns of how to handle different payments:



  • Talk to your mortgage professional as soon as you recognize a problem. The earlier you address a problem, the more they can help you generate options. Also keep them updated consistently.
  • Do your homework by making a list of all the payments you have currently (liabilities) as well as a list of all your assets so you have a clear picture of your finances.
  • Look into resources available to you. If you don’t know where to start, ask your mortgage professional and check out Take Charge of Your Debts from the Government of Canada. These can help you learn how to budget, access counselling for your credit, and learn how to mend your credit.
  • Consider all your options. If your mortgage is through a mortgage insurer then they will work with you to make changes to your mortgage that can help you get back on track. Stay in contact with your lender regardless of who your lender is as well. The more cooperative you are, the more willing they will be to help you.



  • Call the credit companies and see if a reduction in interest rate is possible so you can pay out faster.
  • Check out consolidation loans, which allow you to make one payment for everything.
  • Look into refinancing your home so you can pay out your smaller debts. Consult with your mortgage professional on this option to ensure that a penalty isn’t substantial and that you can afford it.
  • Look into the government program Orderly Payment of Debts. They negotiate with creditors for you for lower interest rates. They will also look at your entire credit picture and help set up a repayment plan until all of your debts are settled. It is important to note that this program requires that you build up your credit afterwards.
  • If a solution cannot be reached, you can declare bankruptcy and will be assigned a Bankruptcy Trustee. All of your assets and liabilities will be weighed and the trustee will offer creditors a percentage of the total owed. This option will funnel you through the court system and additional costs will be incurred. Again, this option requires you to build up your credit afterwards so you can borrow in the future.


As you can see, this can be an extremely overwhelming situation but there are tons of options available to help! Always be upfront with your lenders and creditors so they can help you find a solution early. If you have questions or would like to discuss any of these options in further detail please give us a call!