67+ terms Canadian homeowners run into during mortgage trouble — from the demand letter to the discharge. No jargon, no fear-mongering. Bookmark this page; you'll want it when the paperwork arrives.
The total lifespan of your mortgage — how many years until it's fully paid off. Common in Canada: 25 or 30 years. Lengthening amortization in a refinance lowers monthly payments.
The total amount of missed payments you owe, including any late fees and accumulated interest. If your payment is $1,800/month and you've missed 3, your arrears are roughly $5,400 plus fees. Curing arrears (paying them off) usually stops the foreclosure process.
When a buyer under contract transfers their right to buy a property to another buyer before closing. Common in investor transactions. The original contract price stays the same; the new buyer takes over.
The legal pause on collection actions (including foreclosure) that takes effect immediately when you file bankruptcy or a consumer proposal. It buys time but has serious credit consequences.
A mortgage lender that accepts borrowers the big banks decline — bruised credit, unusual income, past arrears. Rates are higher than the big banks but far below private lenders. Often the refinance path for homeowners in arrears.
The total amount required to fully pay out your mortgage today: principal plus accrued interest plus fees. Also called the payout amount. You get the exact number from a payout statement.
A legal process where you assign your assets to a trustee in exchange for the elimination of most debts. Stops foreclosure temporarily via the automatic stay. Stays on your credit report 6-7 years for a first bankruptcy. A last-resort tool — talk to a Licensed Insolvency Trustee first.
A notice registered against a property's title showing there's an active lawsuit involving the property. Buyers and lenders check for these in title searches.
Another word for a mortgage in land-titles systems — the lender registers a 'charge' against your property's title as security for the loan.
The day money and title actually change hands. The buyer's lawyer sends funds, your lawyer pays out the mortgage and other charges, and the transfer registers at the land titles office.
Canada Mortgage and Housing Corporation — the federal Crown corporation that insures high-ratio mortgages. Not a source of foreclosure help for individual homeowners, despite what some misleading websites imply.
A purchase offer that only becomes binding when stated conditions are met — commonly financing, inspection, and buyer satisfaction. Conditions protect the buyer; sellers should read them carefully.
A formal, legally binding offer to your creditors to settle debts for less than you owe, filed through a Licensed Insolvency Trustee. Gentler than bankruptcy — assets are usually kept — but still affects credit for about 3 years after completion.
The legal work of transferring property ownership: title searches, document preparation, fund handling, and registration. Done by lawyers in most provinces, notaries in BC and Quebec.
A judge's order allowing the lender to sell your property. In judicial-foreclosure provinces (AB, SK, MB, QC), the lender needs this before they can force a sale.
Paying all arrears plus the lender's costs, bringing the mortgage back into good standing. Most provinces give you a legal window to cure. Curing normally ends the foreclosure completely.
A court judgment for the shortfall when a foreclosure sale doesn't cover the full mortgage debt. Example: you owe $400k, the forced sale nets $360k — the lender may pursue you personally for the $40k difference. Rules vary by province. In Alberta, individuals with conventional (uninsured) mortgages are generally protected from deficiency claims — recovery is limited to the land — but high-ratio CMHC-insured mortgages are NOT protected, and the insurer can pursue the shortfall.
The formal letter from your lender (or its lawyer) demanding payment of arrears or the full balance by a deadline. Usually the first legal-track step. Never ignore one — the clock starts here.
The formal removal of the lender's charge from your title after the mortgage is fully paid. Lenders can take 2-8 weeks to register a discharge after payout — which is why lawyers hold back funds until it's confirmed.
In Alberta and some other provinces, a spouse's legal rights in the marital home even when they're not on title. A sale or mortgage may require the non-owner spouse's consent.
The cash portion of a purchase price not financed by a mortgage. Relevant in foreclosure context when calculating whether a refinance is feasible.
The interest a buyer holds in a property after signing a purchase contract but before closing. It's what makes contracts assignable in wholesale transactions.
Your home's market value minus everything owed against it (mortgage, liens, arrears). Equity is your negotiating power: with meaningful equity you can refinance or sell with cash left over. Foreclosure destroys equity through below-market forced sales and legal costs.
A predatory practice where someone acquires a distressed owner's home (or its equity) for far below value, often through confusing paperwork. If a deal feels rushed, one-sided, or you're told not to get a lawyer — walk away.
A lender's agreement to temporarily reduce or pause your payments while you recover from a hardship. Ask your lender's hardship department directly — they don't advertise it.
The legal process where a lender takes or sells a mortgaged property after the borrower defaults. In Canada the term technically refers to the judicial process used in AB, SK, MB, and QC; ON, BC, and Atlantic provinces mostly use power of sale or court-ordered sale instead — but everyone calls all of it 'foreclosure.'
A court-ordered redirection of your wages or bank account to a creditor. Can follow a deficiency judgment after a foreclosure sale.
The informal window after a missed payment before the lender takes real action. Not a legal right — some lenders move faster than others. Don't rely on it.
A bank's internal program for borrowers in temporary financial trouble — payment deferrals, interest-only periods, re-amortization. You usually have to ask specifically for the 'hardship' or 'financial assistance' department.
A mortgage over 80% of the home's value, requiring mortgage default insurance (CMHC, Sagen, or Canada Guaranty). The insurance protects the lender, not you.
Quebec's Civil Code equivalent of a mortgage and its enforcement process. Requires a 60-day prior notice before the lender can exercise remedies, and a notary is involved in most steps.
Unpaid interest that has accumulated on missed payments. Shows up as its own line on payout statements and compounds the longer you wait.
The court-supervised process in AB, SK, MB and QC. Slower than power of sale (6-9 months typical) with more built-in borrower protections like redemption periods.
The government office where property ownership and charges are recorded. Every mortgage, lien, transfer, and discharge registers here.
The only professional legally allowed to file bankruptcies and consumer proposals in Canada. Federally licensed and required to explain ALL your options, including non-insolvency ones. First consultation is free.
A creditor's registered claim against your property — CRA tax debts, unpaid contractors (builders' liens), condo fee arrears, and judgments can all become liens. Liens must be cleared before or at any sale.
Latin for 'suit pending' — a title registration warning that the property is involved in litigation. Same practical effect as a CPL.
A permanent change to your mortgage terms — extended amortization, capitalized arrears, adjusted rate — negotiated to make payments sustainable. Lenders rarely volunteer it; you or your lawyer must ask.
When your current mortgage term ends and the balance is due or must be renewed. Lenders can refuse to renew a mortgage in arrears — a common trigger for foreclosure.
Insurance (CMHC/Sagen/Canada Guaranty) that repays the lender if you default. It does NOT protect you — after paying the lender, the insurer can pursue you for the deficiency.
Your lender's periodic summary of balance, payments, and rate. In a sale or refinance, the formal version is the payout statement.
In Quebec (and commonly BC), the legal professional who handles real estate closings instead of, or alongside, a lawyer.
In Saskatchewan this is the FARM-LAND mechanism: 150 days' notice to the Farm Land Security Board with mandatory review and mediation before a lender can seek a court order. For an urban home the instrument is different — a 60-day notice of the lender's application for leave of the court under The Land Contracts (Actions) Act, 2018. Also refers to a Notice of Intention to Make a Proposal in insolvency — context matters.
Ontario's power-of-sale trigger document. After serving it, the lender can sell the property once the statutory 35-day (or contract-specified) period passes.
The final court order in a judicial foreclosure transferring the property to the lender outright and ending the borrower's rights — including any deficiency claim in some provinces. Rare; lenders usually prefer a sale.
The first major court order in judicial foreclosure. It sets the redemption amount and deadline — your last formal window to pay in full or sell. 'Nisi' means 'unless': the foreclosure completes UNLESS you redeem.
The lender's formal document stating exactly what's required to fully pay off the mortgage on a specific date: principal, arrears, per-diem interest, fees, and legal costs. Valid for a limited window (often 15-30 days). Required for any sale or refinance.
The daily interest amount accruing on your balance, listed on payout statements so lawyers can calculate the exact payout for any closing date. Example: $34.83/day adds about $1,045/month to what you owe.
The faster, non-judicial enforcement process used in Ontario and most Atlantic provinces. The lender sells the property under a contractual power without taking title first. Timeline can be as short as ~90 days from default — speed matters most in these provinces.
The core loan amount, excluding interest and fees. Payments early in a mortgage are mostly interest; principal repayment accelerates over time.
An individual or mortgage investment corporation lending outside bank regulation. Rates typically 8-14%. Often the only refinance option late in a foreclosure — expensive, but sometimes cheaper than losing the home and your equity.
Transferring your interest in a property to someone else (sometimes the lender) without warranties. Occasionally used to settle a foreclosure by consent. Get legal advice before signing one — you may be giving up equity.
Your right to fully pay out the mortgage and keep the property, even after court proceedings start. The order nisi sets the deadline (often 30 days to 6 months depending on province and equity). Realistically requires refinancing or a sale to fund.
Replacing your current mortgage with a new one — often with a new lender, and often the cleanest way to stop a foreclosure when you have equity and income. B lenders and private lenders refinance files the big banks won't.
Bringing the mortgage current by paying arrears and costs (same as curing the default), restoring the original payment schedule.
Quebec's court-supervised forced-sale remedy — the Civil Code equivalent of a judicial sale.
An additional loan secured against the home behind the first mortgage. In a forced sale, the first mortgage is paid before the second gets anything — which is why second-mortgage lenders sometimes move aggressively on default.
A forced sale conducted under court authority. Prices routinely land 15-25% below market — a key reason selling privately before this point almost always nets you more.
Selling for less than the total debt owed, requiring the lender to accept a shortfall. Less formalized in Canada than the US, but lenders do negotiate — especially when a forced sale would net them less.
The court filing that formally starts a judicial foreclosure lawsuit. You typically have 20 days (varies) to file a defence. Even if you don't dispute the debt, responding preserves options — talk to a lawyer immediately.
A sworn written statement used throughout real estate transactions — declarations of possession, marital status, and more.
The legal record of who owns a property and what claims exist against it. A title search reveals mortgages, liens, easements, and litigation flags.
Insurance protecting buyers and lenders against title defects, fraud, and survey issues. Standard in most Canadian closings.
See Licensed Insolvency Trustee. Also, in some mortgage contexts, a neutral party holding deposits in trust.
Owing more on the home than it's worth. Narrows your options to short sale, proposal/bankruptcy, or negotiating with the lender — but options still exist.
A sale where the seller finances part of the price, receiving payments over time instead of full cash at closing. A tool in seller-financed transactions.
A registered court judgment that attaches to your property and must be paid out of sale proceeds. CRA and judgment creditors use these.
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