How to Protect Your Home During Job Losses: A Homeowner’s Guide

Over my nearly 20 years in real estate, my mission has always been to help people buy and sell their homes with confidence. But lately, the calls I’ve been getting are different. Many clients are not asking how to sell their homes — they’re asking how to keep them during unexpected job losses.

You don’t need an economics degree (though I do have one) to see that we’re in the middle of an economic downturn. The headlines are clear: layoffs, plant closures, and industry slowdowns are affecting thousands of hardworking people.

If you’re worried about your job and wondering how to pay your mortgage, you’re not alone — and you do have options.

Preparing before a job loss happens can make all the difference. Here’s a step-by-step plan to protect your home and make selling a true last resort.

Step 1: Assess Your Financial Position

Start by understanding exactly where you stand financially.

Know Your Numbers

• List your monthly expenses — mortgage, utilities, food, transportation, insurance, etc.
• Separate essential from non-essential spending.
• Calculate how long your savings could cover expenses if your income stopped.

Check Your Mortgage Details

• What’s your payment amount and interest rate?
• Is your mortgage fixed or variable?
• Do you have mortgage insurance?
• Are you up to date on payments?

Knowing this helps you make informed decisions — and have a confident conversation with your lender if needed.

Step 2: Build a Job Loss Contingency Fund

If you’re still working, focus on strengthening your financial cushion.

• Save enough to cover 3–6 months of essential expenses.
• Cut or pause non-essential spending.
• Deposit bonuses, tax refunds, or side income into your emergency fund.
• Keep savings in a high-interest account for accessibility and growth.

Step 3: Strengthen or Diversify Your Income

Before layoffs hit, take steps to make your income more resilient.

• Explore side gigs like freelancing, consulting, or ride-share driving.
• Ask your employer about retraining or transfers to more stable departments.
• Update your résumé and LinkedIn so you’re ready to act quickly.
• If you have a partner, plan how to temporarily increase or stabilize their income.
• Investigate Government retraining programs.

Step 4: Communicate Early with Your Lender

If you believe your job may be at risk, don’t wait — reach out to your mortgage lender.

Many lenders have hardship or forbearance programs available, especially during industry-wide layoffs.
Options may include:

• Payment deferrals or temporary pauses
• Interest-only payments for a limited period
• Loan modifications to reduce your payment amount

During the COVID-19 pandemic, many homeowners were able to keep their homes through these programs — and similar solutions still exist today. Early communication is key.

Step 5: Cut and Protect Strategically

You may not control your income, but you can control your spending and coverage.

• Eliminate unnecessary expenses (subscriptions, travel, large purchases).
• Refinance or consolidate high-interest debt.
• Review any job loss or mortgage protection insurance you have.
• If you’re part of a union, inquire about job displacement benefits or support programs.

Step 6: Explore Support and Relief Programs

Depending on where you live, you may qualify for additional assistance:

• Employment Insurance (EI) or government income support.
• Utility and property tax deferral programs.
• Provincial or municipal homeowner relief programs for those facing layoffs.
• Credit card hardship programs that reduce interest or payments for a short term.

Step 7: Last Resort — Alternatives to Selling

If things become more challenging, explore creative solutions before considering a sale.

• Rent out part of your home (such as a basement suite or room).
• Consider short-term rentals (like Airbnb, where permitted).
• Refinance or access a HELOC (Home Equity Line of Credit) while still employed.

Step 8: Engage with a Trusted Realtor®

Having a knowledgeable Realtor® on your side can make a huge difference.
Look for someone who understands that your goal is to keep your home — but who’s also prepared to guide you through a sale strategically if it becomes necessary.

A trusted Realtor® can:

• Provide an accurate market evaluation.
• Help you explore equity options and refinancing opportunities.
• If selling becomes unavoidable, market your home effectively to help you retain as much equity as possible.

Key Takeaway

The biggest mistake homeowners make during uncertain times is waiting too long to act.

The earlier you:
1️⃣ Reduce expenses,
2️⃣ Build cash reserves, and
3️⃣ Communicate with your lender —

…the more power you’ll have to protect your home and your financial future.

If you’re worried about your job or mortgage, don’t wait until it’s too late — reach out to your lender, explore your options, and talk with a trusted Realtor® who understands your goals. You don’t have to face this alone.

Author: Francesca Belle

EXIT Realty Hare (Peel)

Sales Representative

homes@francescabelle.com

905-451-2390