Ontario's power of sale process moves fast — often 35-45 days from notice. Understanding the timeline and your rights is critical to stopping it.
Power of sale is the most common method mortgage lenders use to deal with defaulted mortgages in Ontario. Under the Mortgages Act of Ontario, a lender has the right to sell your property without going to court — making it significantly faster than judicial foreclosure.
The key difference from foreclosure: in a power of sale, the lender does not take ownership of your property. They sell it as your agent. Any surplus above what you owe goes back to you. This is actually better for homeowners than true foreclosure, where the lender takes title and keeps everything.
You miss a mortgage payment. Most lenders wait 15-90 days before initiating power of sale proceedings, depending on their policies and your payment history.
The lender issues a formal Notice of Sale Under Mortgage. This is the legal starting point. You have 35 days from the date of this notice before the lender can sell.
During these 35 days, you have the right to redeem your mortgage by paying all arrears plus the lender's legal costs. If you pay in full, the power of sale stops completely.
After the 35-day redemption period, the lender can list your property for sale. They must make reasonable efforts to get fair market value — they can't dump it for below-market price.
Once sold, the mortgage and legal costs are paid from proceeds. Any surplus goes to you. If there's a shortfall, the lender can pursue you for the deficit (unlike true foreclosure in Alberta).
Within the 35-day notice period, pay all arrears plus legal costs to stop the process immediately.
A private lender can refinance fast enough to pay off your mortgage before the sale. They focus on equity, not credit score.
List and sell on your terms before the lender lists the property. You'll get a better price and protect your credit.
Having an advocate negotiate on your behalf can result in payment plans or modifications that stop the power of sale process.
Toronto, Mississauga, Brampton, Hamilton, Ottawa, London, Kitchener, Windsor, Oshawa, Barrie, St. Catharines, Cambridge, Guelph, Thunder Bay, Sudbury, Kingston, Peterborough, Brantford, Sarnia, Niagara Falls, and all communities across Ontario.
35 days is not a lot of time. Get a free assessment today and understand your options.