The information provided here is general information only and not legal advice. We do not warranty or represent that we are providing any legal advice. Every matter is different and you should still consult a lawyer who is member of the bar in your jurisdiction for advice with respect to your specific circumstances. We exclude any liabilities that may arise out of the use or misuse of this information.
Question: What remedy does a lender have if I default under a typical mortgage?
Answer: You can only determine what remedies will be available in each situation by considering the specific terms of your mortgage and the current law of mortgages. For example, some mortgages will contain a mechanism called an “Acceleration Clause.” The way an Acceleration Clause works is that upon default in any of the mortgage terms by the borrower the lender may usually enforce an Acceleration Clause which makes the outstanding principal amount of the mortgage interest and costs due and owing on default. Most Acceleration Clauses are exercisable at the lender’s option, although depending on the specific terms of your mortgage; the borrower may be relieved from the consequences of acceleration by paying the amount in arrears, together with costs. Also take note that CMHC, Gemworth and other high ratio mortgages have their own rules regarding personal liability that are different from conventional mortgages.