The failure to meet the terms of your mortgage agreement, most commonly by missing required payments. In Ontario, if you default, the lender can initiate a power of sale process to sell the property and recover the outstanding debt. Default can also be triggered by failing to pay property taxes, letting insurance lapse, or causing significant damage to the property.
Why It Matters
Mortgage default is a serious situation that can result in losing your home and damaging your credit for years. If you're struggling to make payments, contact your lender immediately -- they often have options like extending the amortization or deferring payments. Waiting until you're already in default limits your options significantly.
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