Talk to your lender first
Who it fits: almost everyone, at almost any stage. The trade-off: none worth speaking of. First step: phone the number on your statement and ask what arrangements exist.
We have no financial interest in this suggestion whatsoever, which is exactly why we lead with it. Lenders generally prefer a performing mortgage to a legal process, and arrangements are more common than people expect.
A payment arrangement or deferral
Who it fits: a temporary interruption in income with a clear end. The trade-off: deferred interest still accrues; you are moving the problem, not erasing it. First step: ask your lender in writing.
Selling on the open market
Who it fits: anyone with equity to protect. The trade-off: you leave the home, but on your terms and with the surplus. First step: understand what a proper sale would net you.
A fast cash sale
Who it fits: people who are genuinely out of runway. The trade-off: a real discount to market. First step: compare it honestly against listing.
Refinancing or private lending
Who it fits: those with equity and recovering income. The trade-off: cost, sometimes a high one. First step: check whether you would qualify.
Quit claim or handing back the property
Who it fits: a narrow group with no equity and no wish to keep the home. The trade-off: you give up the property and any upside, and it does not automatically resolve every question about the debt. It is uncommon in Alberta. First step: legal advice, before signing anything at all.
A consumer proposal or bankruptcy
Who it fits: people whose difficulty is broader than the mortgage. The trade-off: significant and long-lasting, and beyond our scope to advise on. First step: speak with a Licensed Insolvency Trustee — they are the only people permitted to administer these in Canada, and an initial consultation is usually free.
Doing nothing
It is an option, so it belongs on an honest list. What it means in practice is that the court process continues and the property is eventually sold under the court's direction, with any surplus paid out afterward. People choose it, usually because they are overwhelmed rather than because they weighed it. If that is where you are, one conversation costs you nothing.
