What happens if I miss a private mortgage payment?
Updated: February 28, 2026CanadaFAQPrivate lending
Quick Summary
Missing a payment can trigger default interest, fees, and legal notices, and may lead to enforcement (power of sale or foreclosure) depending on your province and contract.
The most important thing is speed and communication.
What can happen
- Default Interest and late fees may start accruing immediately.
- The lender may issue formal notices and start enforcement steps.
- Legal costs can increase quickly once the file moves toward enforcement.
What you should do
- Contact your broker or lender right away and ask what cures the default.
- Speak with a real estate lawyer early, especially if you receive formal notices.
- Move quickly on an exit plan: refinance, sale, or a negotiated workout.
Because timelines vary by province and contract, get legal advice as soon as enforcement is on the table.