It is an appealing idea: move somewhere cheaper, let the tenant pay the mortgage, keep the asset. Sometimes that works. Often the arithmetic does not survive contact with the details.
Do the arithmetic honestly
Against realistic rent, set the mortgage payment, property taxes, insurance — which rises for a rental — maintenance, any management costs, and an allowance for vacancy, because tenancies end and the mortgage does not.
Then add what it costs to house yourself elsewhere. If the gap is negative, renting it out is not a solution; it is a slower version of the same problem with more moving parts.
The parts people forget
Your mortgage may not permit it. Many owner-occupied mortgages restrict renting, and doing it anyway can breach the agreement. Ask your lender first.
Insurance must change. A homeowner's policy on a rented property may not respond to a claim. Tell your insurer.
Arrears do not pause. Rent covers the ongoing payment; it does not clear what is already behind unless it materially exceeds costs.
You become a landlord. With obligations under tenancy law, and a tenant who might not pay — leaving you responsible for a mortgage with no rent and a legal process to recover possession.
Tax and future sale. Converting a home to a rental can affect the tax treatment when it is eventually sold. Ask an accountant before doing it.
When it does work
When the numbers genuinely clear with margin, the mortgage allows it, you have somewhere affordable to live, and the arrears can be resolved separately. And usually when the interruption is temporary — a posting elsewhere, a year of work in another city — with a clear plan to return.
When it does not
When it is a way of avoiding a decision. If the maths only works with optimistic rent, zero vacancy and no repairs, it does not work — it just fails later, with a tenant involved and less equity left.
Questions people ask
General information about the Alberta foreclosure process — not legal or financial advice, and nothing here guarantees an outcome. Every file is different.