Capital Mortgages Inc is an independent brokerage in the Mortgage Centre Canada Network and one of Ontario’s leading real estate mortgage brokerages with offices in Ottawa and the valley.

What Happens to Your Mortgage When a Natural Disaster Destroys Your Home

Last week a series of tornadoes touched down in the Ottawa/Gatineau region leaving destruction in their wake. Many residents suffered days without power, while others were left completely without shelter as the tornadoes caused irreparable damage to their homes. Our thoughts go out to those affected by the events of last week.

It is likely the last thing on your mind in a moment like this, but in the days and weeks following the catastrophe certain questions may need to be answered. Questions such as “What happens to my mortgage after a house is seriously damaged or even completely lost?”

It may not be much, but we hope to answer some of those questions here in the hopes that this information may prove valuable to those residents most affected.

Here are some key points:

In the event the home is damaged, lost, destroyed, or cannot be occupied, the first phone call you make should be to your insurance company.

Unfortunately, regardless of the condition of the home, the obligation to continue paying the mortgage still exists.  It is particularly important that it be kept up to date to protect your credit rating.

If you have any concerns about your ability to make any of your mortgage payments, then contact your Mortgage Company right away. Even if you think there may be some issues down the road, contact them right away. If you are not sure how to reach them, contact your mortgage broker.

Any property owners that have been affected may experience financial hardship as a result of temporary evacuation or from the need to rebuild or repair their homes. The mortgage lenders as well as the mortgage insurers are keenly aware of this.  

Should you have been impacted, the following options may be available to help you through this difficult time:

  • Deferral of your mortgage payments
  • Re-amortization of the loan to result in lower payments helping you with cash flow challenges.
  • Capitalization of outstanding interest arrears and other eligible expenses onto the mortgage.
  • Special payment arrangements to be agreed upon by you and your mortgage lender.


The key here is to contact your Mortgage Lender right away if you have any concerns at all. If you have any further questions, you can reach out to our experienced team at Capital Mortgages and we will do everything we can to help you.