Behind on a condo mortgage or facing a default notice? You still have options.
Missed rent, unpaid fees and default notices can feel final. They usually are not. Here is what lenders will want to see, and the paths owners are using to recover.
You've started an application.
Saves as you go · No credit check · A licensed mortgage professional follows up
How lenders look at condo investors in arrears borrowers
1Lenders and condo corporations have to follow set steps and timelines before they can sell a unit. Acting early keeps more options open.
2If your tenant's rent was being collected by a manager who stopped paying, getting rent back into your own account is the first fix.
3A refinance, a second mortgage, or a short-term private loan can catch up arrears while you stabilise the unit.
4Lenders will want proof the unit is rented and the rent now reaches you.
Get ready
What lenders will ask you for
Your current mortgage statement and any letters from your lender
Any Notice of Sale, Statement of Claim, or condo lien notice, with dates
Your lease and proof of recent rent deposits
Your condo status certificate or fee statement, if you have it
Your property tax bill
Any letters from a property manager about unpaid rent or fees
Your options
Which kind of lender fits you
Option 1
Talk to your current lender
Lenders often prefer a payment plan or deferral over a sale. A broker can help you ask.
Option 2
Refinance or second mortgage
Uses your equity to clear arrears and condo fees in one step.
Option 3
Private bridge loan
A short-term loan that buys time to stabilise the unit, then moves to a regular lender.
Avoid these
Common mistakes
!Ignoring letters from your lender or condo corporation: deadlines keep running.
!Letting a former manager keep collecting your rent.
!Signing a quick sale or "rescue" offer without independent legal advice.
!Waiting to see what happens with the group action before dealing with your own mortgage.
Take action
Your first steps
1Redirect your tenant's rent to your own account with a written notice.
2Collect every letter from your lender and condo corporation, with dates.
3Get a current payout or arrears figure from your lender.
4Speak to a lawyer if you have a Notice of Sale or Statement of Claim.
5Start the confidential intake so a broker can review your options.
The intake
What your application will ask
Your online application goes one topic at a time and saves every answer and document as you go, so you can stop and come back. It never runs a credit check, and a licensed mortgage professional reviews it and follows up.
For condo investors in arrears borrowers
Which building and unit, and what is the problem right now: arrears, a closing not completed, or a title or occupancy issue?
Have you received a Notice of Sale, a Statement of Claim, or a condo lien notice? On what dates?
Who is your current lender, how much is owing, and is a renewal or maturity coming up?
Is the unit occupied, and is the rent being paid to you?
Did a property manager or developer problem cause the arrears (for example, rent collected but not passed on)?
Plus the basics everyone answers 13
Your full name, email, mobile number and the best time to call.
The city you live in, and whether you are a Canadian citizen, permanent resident, or other status.
Are you applying alone or with someone else? If with someone, their name and how you are related.
Your goal: buy, refinance, renew, take out equity, or consolidate debt?
The property type (house, condo, multi-unit) and the city it is in.
Will you live in it, rent it out, or both?
The purchase price or estimated value, and your target closing or renewal date.
Your down payment or available equity, and where it comes from (savings, RRSP/FHSA, a gift, sale of another property).
Your approximate yearly household income before tax.
Your monthly debt payments: car loans, credit cards, lines of credit, student loans, support payments.
Your own estimate of your credit score: excellent, good, fair, poor, or not sure.
In the last 7 years, any bankruptcy, consumer proposal, collections, or missed mortgage payments?
May the broker contact you? (A credit check is only ever run later, with your separate written consent.)
Scroll for more
Answers
Questions people ask
Can I refinance if I am already behind on my mortgage?
Sometimes, especially with enough equity. B and private lenders look more at the property's value than at recent missed payments.
What is a Notice of Sale?
A formal notice from a lender that it intends to sell the property under power of sale. It sets a deadline to pay what is owed. Get legal advice right away.
Can my condo corporation put a lien on my unit?
Yes. Unpaid common expenses can become a lien registered on title, which ranks ahead of most mortgages. Catching up the fees quickly matters.
Will my lender work with me?
Many will, if you contact them early with a plan. A broker can help you present one.
What if my property manager kept my rent?
Your lender still expects payment, so redirect the rent to yourself first and keep records. Getting the money back from the manager is a separate legal matter; ask a lawyer.
Does starting the intake affect my credit?
No. It is only questions. A credit check comes later, with your permission.
General information, not mortgage, legal or tax advice. Lender rules change and every application is reviewed on its own facts. Your application and documents are stored privately and go only to a licensed mortgage professional at Top Mortgages Inc; they are never sold, and no credit check is run without your separate written consent.