Clear mortgage arrears with the equity in your home
If you have fallen behind and your lender has sent a notice, a refinance or second mortgage based on your equity can often clear what is owing and keep you in your home.
How your equity can help with arrears
When mortgage payments fall behind, most Ontario lenders follow a process called power of sale. It usually begins with a formal notice and, if the arrears stay unpaid, allows the lender to sell the home to recover what is owed.
If your home has equity, a new first mortgage or a second mortgage can often pay the arrears and fees in full and bring your account back to good standing. Starting early in the process usually keeps more lenders and options open, and we suggest independent legal advice alongside our help.
Apply TodayA refinance or second mortgage uses the blue portion to pay what is owing. How much you can access depends on your home value and your lender.
Why homeowners bring their arrears to Lighthouse
When payments have slipped, a calm plan and the right lender make the difference.
Approved on your equity
We look at the equity in your home first. Missed payments and past credit bumps do not close the door.
Private and judgment-free
Falling behind happens to careful people. We review your situation privately and explain every option in plain language.
Clear answers in 24 hours
Conditional answers often arrive within 24 hours, so you and your lawyer can plan with a firm number in hand.
Situations we help with
Arrears usually follow a life event, not a lack of care. Here are the most common ones.
Missed payments after a job loss or illness
Income paused for a while and the payments slipped. Your equity can bring the mortgage current while life settles.
A notice of sale has arrived
A notice is a step in the process, not the end of it. Homeowners with equity often still have options from here.
Property tax arrears
Unpaid property taxes can put a mortgage in default too. A refinance can pay the taxes and the arrears together.
A separation or a slow stretch in business
A separation or a quiet season can strain one income. We approve on equity, so changing income is welcome.
How it works
Three simple steps from first conversation to arrears cleared.
Tell us where things stand
Share a few details about your home, what is owing and any notice you have received. It takes minutes and does not affect your credit score.
We match your lender
A Lighthouse specialist reviews your equity and shops our full network for a refinance or second mortgage that fits.
Clear the arrears
Once approved, funds are paid through your lawyer to what is owing, often in as little as a few days.
Using your equity or another option?
A quick look at how refinancing with your equity compares with two other paths.
| Refinance with equity | Wait it out | Sell the home | |
|---|---|---|---|
| Stay in your home | Yes | Uncertain | No |
| Clears the arrears | Yes, in one step | No | Yes, from the sale |
| You choose the next step | Yes | Less so over time | Yes |
| Fees and interest | Folded into one plan | Keep adding up | Paid from the sale |
| Protects your equity | Most of it stays yours | Can shrink over time | You keep what remains |
How much equity could you access?
Move the sliders for a quick estimate of the equity available to clear arrears, then apply for your exact number.
What Ontario homeowners say
See how Lighthouse Lending has helped Ontario families use their equity.
"After explaining our situation, Kristen found a way to save us thousands. Positive, professional and kind the whole way. Life changing!"
"Fantastic to deal with and very helpful at times when life can feel stressful over finances. I really appreciated the care they put in."
"Matthew was wonderful to work with. Calm and collected, and handled everything with professionalism and integrity. Highly recommend."
Power of sale questions
Plain answers to the questions homeowners ask us most.
Power of sale is the process most Ontario lenders use when mortgage payments fall behind. It allows the lender to sell the home to recover what is owed, and any money left after the sale and costs goes to the homeowner. It is different from foreclosure, a court process that is rarely used in Ontario.
Often, yes. If your home has enough equity, a refinance or second mortgage can pay the arrears and fees and bring your mortgage back to good standing. Starting early in the process usually means more lenders and more options to choose from.
No. We approve on the equity in your home first. Missed payments, bruised credit and self-employed income are all common in the files we see. That is the difference between a broker and a bank.
Many homeowners receive a conditional answer within 24 hours, with funds arranged in as little as a few days, depending on the lender and your situation. Your lawyer handles the payment to your current lender.
Yes, we recommend it. A lawyer can explain your rights and each step in your lender's process, while we focus on the financing. We are glad to work alongside your lawyer from the first conversation.
See what your equity can do
Apply in minutes and get a clear answer fast. No pressure, and no impact on your credit score to see what you qualify for.