Can’t Afford Your Mortgage? Your Home Equity Might Help

Photo credit

Once, your mortgage came out like clockwork. Now you're logging in the night before payday, doing mental gymnastics. You shuffle bills, ignore statements, and tell yourself next month will be better. Maybe it will. Maybe it won’t.

Let’s skip the shame spiral. You’re not the only one, and this isn’t a personal failure. Rates spiked. Groceries doubled. Wages didn’t budge. The math changed, but nobody gave you a calculator.

Here’s what’s still in your control.

When You’re Falling Behind, Timing Matters

It doesn’t start with a missed payment. It starts with skipped dinners, unopened emails, and a growing sense of dread. You’re technically not in default, but you’re also not okay.

What you do early determines what happens next. The longer you wait, the fewer cards you’ll have to play.

Option 1: Refinance Before the Mess Gets Bigger

Refinancing isn’t glamorous. It’s strategic. You swap your current mortgage for one that fits your reality now. Not two jobs. Not two kids. Not a pandemic ago.

Let’s say your payments jumped by $600 after renewal. Refinancing could stretch your amortization, reduce your monthly payment, or land you a better rate. If you’re carrying high-interest debt, you might be able to roll that in at something much lower.

Your bank isn’t going to offer this upfront. Not unless you ask the right question, to the right person, at the right time and have an hour to spend on hold. That’s why many Canadians skip the song and dance and turn to 360Lending. They specialize in helping homeowners get the lowest rates, with less red tape and more real answers.

Option 2: Use Your Home Equity Strategically

If you've owned for a while—or bought before prices exploded—your home likely has equity. That equity can work for you, without needing to sell.

A home equity loan or line of credit gives you access to that value. You can use it to pay off expensive debt, fund essential upgrades, or simply give yourself breathing room.

It’s not free money. But it’s smarter than throwing groceries on a credit card at 21% interest.

Option 3: Consolidate Your Debt (Properly)

Debt consolidation is about collapsing multiple high-interest debts into one payment. Ideally with one lower interest rate. It simplifies your finances, improves cash flow, and gives you a shot at actually paying things down.

If your mortgage itself isn’t the issue—but everything else is—consolidation helps redistribute the pressure. According to the Financial Consumer Agency of Canada, debt consolidation can help you manage payments more effectively and potentially reduce the amount of interest you pay, if it’s done right.

Thinking About Selling?

Selling feels like an escape. For some, it is. But don’t skip the math: prepayment penalties, real estate fees, moving costs, rent. The money you think you’ll pocket might vanish faster than you think.

If you want to stay—because the neighbourhood works, the school’s good, the routine matters—exhaust your options first. Don't let urgency sell your house for you.

Still Don’t Qualify for a Loan?

If borrowing’s off the table right now, there are still paths forward. Non-profits like the Credit Counselling Society offer Debt Consolidation Programs that don’t require you to take out a new loan. Instead, they negotiate with your creditors to combine your unsecured debts into a single monthly payment, often with lower interest and fewer surprises.

Skip the Budgeting Advice. You Need a Plan.

No one needs another lecture on avocado toast. You need a map. You need to know what tools exist, what they cost, and what they really get you.

It’s not about winning. It’s about stabilizing. Because even if the system doesn’t play fair, you still get to choose your next move.

And that next move? Might just start with asking the right questions.