KenA

bought a house in Apr ( prices were at their highest)

I have a job and paying my mortgage since Jul

Having a problem at my work and have been thinking what if I lose my job

What happens if i could not pay the mortgage?

will the bank give me a chance to look for another job and give me some skip period?
or that's it you don't pay you will be in trouble and bad credit history and the house going for auction?
my mortgage with Scotiabank

Almost Canadian

I'd suggest that you speak to your bank as soon as possible should such a situation arise.

Lenders over here are far more like to foreclose than would be the case in the UK.

CanadaJimmy

This video explains pretty well what happens:

JamesM

Just some ideas.

Scotia give a pretty good line of credit.

Start looking for a new job and get that line of credit pushed up while you're employed.

Might give you some what of a buffer if you need it. The interest is much better on the line of credit than any card.

scilly

The last time we had a really bad recession was back in 1983->

The interest rate rose to as high as 21%, and people literally walked away from their houses, including a man who lived just across the street from us.

We were lucky in that our mortgage came up for renewal at 13%, and we decided to take a 2 year fixed one instead of the variable rate we'd previously been opting for. During the 2 year term the interest shot up to that 21% and then dropped almost as rapidly, and we renewed again at 13%.

I think banks learnt a lot from that ......... it's better to try to help people than be left holding the baby.

I agree with Almost Canadian ........... contact your bank as soon as it becomes that this scenario will happen. They SHOULD work with you to find a suitable solution

sharkus

I have a feeling many homeowners might well be contacting their banks about their mortgages, so you could possibly be proactive and just give them a quick call about rising interest rates, wether you can switch from variable to fixed rate and any fees involved in that, and oh, if I need to take a repayment holiday for any reason, is that possible?

MRCT

Here’s What Happens If You Miss a Mortgage Payment (yahoo.com)

theotherlebowski

Speak to your bank and read the small print on the mortgage agreement you signed...