Your lender may agree to restructure your mortgage rather than pursue costly foreclosure proceedings. We negotiate on your behalf to find terms you can afford.
Mortgage restructuring means changing the terms of your existing mortgage to make it more affordable. This can include extending the amortization period, reducing the interest rate, adding arrears to the principal, or arranging a temporary payment deferral. The goal is to keep you in your home while bringing your mortgage back into good standing.
Temporarily pause or reduce your payments to get through a short-term financial hardship. Missed payments are added to your principal balance.
Short-Term ReliefPermanently change your mortgage terms — lower interest rate, longer amortization, or both. This reduces your monthly payment going forward.
Permanent SolutionYour missed payments and legal fees are added to your mortgage balance and spread across the remaining term. No lump-sum catch-up payment required.
Catch-Up PlanKeep your existing mortgage terms but add a temporary extra payment each month to gradually pay off your arrears over 6-24 months.
Gradual RecoveryForeclosure is expensive for lenders too. Legal fees, property maintenance, real estate commissions, and the risk of selling below market value all eat into a lender's recovery. In many cases, restructuring your mortgage is the more profitable option for your lender — which is why they often agree when approached correctly.
The key is knowing how to negotiate. Having an experienced advocate present your case to the lender's loss mitigation department dramatically increases your chances of approval.
Most Canadian homeowners facing foreclosure have some form of restructuring available to them. Lenders are most likely to approve a mortgage restructuring when you can demonstrate:
Even if you've already received a demand letter or foreclosure notice, mortgage restructuring may still be possible. In Alberta, the judicial foreclosure process takes months — there is time to negotiate if you act now.
| Option | Keep Your Home? | Credit Impact | Best For |
|---|---|---|---|
| Mortgage Restructuring | Yes | Minimal | Temporary hardship, stable future income |
| Private Lender Refinancing | Yes | Low | Bank says no, but you have equity |
| Pre-Foreclosure Sale | No | Moderate | Can't afford any payment, need equity out |
| Foreclosure (Do Nothing) | No | Severe (6-7 years) | Never — always explore alternatives first |
Most lenders process restructuring applications within 2-6 weeks. During this time, foreclosure proceedings are typically paused while the lender reviews your proposal. Having complete documentation ready speeds up the process significantly.
A successful mortgage restructuring has far less impact on your credit than a foreclosure. While your credit report may note the modified terms, this is dramatically better than a foreclosure record that stays on your credit for 6-7 years and can reduce your score by 200+ points.
If your primary lender declines, you still have options. Private lender refinancing can pay off your existing mortgage and give you a fresh start with affordable payments. We also explore debt consolidation, consumer proposals, and pre-foreclosure sales as alternative paths to stop foreclosure.
Yes. In most Canadian provinces, you can negotiate mortgage restructuring at any point before the final court order or power of sale closing. The foreclosure process in Canada moves slowly — especially judicial foreclosure in provinces like Alberta, Saskatchewan, and British Columbia — giving you time to explore mortgage relief options even after proceedings have started.
We'll assess your situation and negotiate directly with your lender. Free, confidential consultation.
Common questions about the foreclosure process and your options.
Restructuring changes the terms of your existing mortgage — for example a lower rate, a longer amortization, or a plan to repay the arrears over time — to make the payments manageable again and avoid foreclosure. It works with your current loan rather than replacing it.
Often, yes. Lenders may agree to add the arrears to the loan balance, extend the amortization, or set up a repayment plan — particularly if you act early and can show the new payments are sustainable. The further proceedings have advanced, the harder it becomes.
A negotiated restructure is generally far less damaging to your credit than a foreclosure or power of sale. Resolving the default and keeping your payments current keeps the most serious marks off your credit record.
Restructuring modifies your current mortgage with your existing lender; refinancing replaces it with a new loan, often from a different lender. Both can stop a foreclosure — the right choice depends on your equity, your lender's flexibility, and how quickly you need a solution.
As early as possible — ideally at the first missed payments or as soon as you anticipate trouble. The earlier you raise it, the more open most lenders are, and the more options remain before formal foreclosure or power-of-sale proceedings begin.