Facing Power of Sale in Ontario? What You Can Still Do
The Ontario power of sale timeline, what the notice actually means, and the options that still exist before the lender lists the home.
July 28, 2026 · 7 min read · Anchor Home Group
Power of sale is the process an Ontario lender uses to recover what it is owed after a mortgage goes into default. It is not the same as foreclosure, and the difference matters: under power of sale the lender sells the property, takes what it is owed plus costs, and any surplus belongs to you.
The rough timeline
- 1A payment is missed. The lender contacts you; nothing legal has started yet.
- 2After default continues, the lender issues a Notice of Sale under Mortgage. Ontario's Mortgages Act requires a redemption period — commonly 35 days — before the lender can take further steps.
- 3If the default is not cured, the lender can proceed to a statement of claim and eventually list and sell the property.
- 4The property sells. Proceeds pay the mortgage, legal costs, and enforcement costs; anything left over is yours.
The window between the notice and the lender's sale is where homeowners have the most leverage — and it closes faster than most people expect. Legal and enforcement costs are added to your balance the entire time.
Options that still exist
- Reinstate the mortgage by paying the arrears plus the lender's costs.
- Refinance, including with a private or B lender, if there is enough equity.
- Sell on the open market — viable only if the timeline allows for listing, conditions, and closing.
- Sell directly for cash with a firm closing date, which stops the interest and legal costs from accumulating and preserves whatever equity is left.
The worst outcome is doing nothing. Equity gets consumed by costs while the file sits.
What to do this week
- 1Read the notice and note the exact deadline.
- 2Call your lender and ask for the full payout figure including costs to date.
- 3Speak with a real estate lawyer — most will do a short initial call.
- 4Get a written, no-obligation offer so you know your floor before you decide.
This is general information, not legal advice. Every mortgage and every default is different — talk to a lawyer about your specific file.
Common questions
- Is power of sale the same as foreclosure?
- No. In a foreclosure the lender takes ownership of the property. Under power of sale in Ontario the lender sells the property and must return any surplus to the homeowner after the debt and costs are paid.
- How long do I have after a Notice of Sale?
- Ontario's Mortgages Act sets a redemption period, commonly 35 days after the notice, before the lender can proceed further. The full process usually runs longer, but costs accumulate throughout.
- Can I sell my house while it is under power of sale?
- Yes, in most cases you can sell up until the lender completes a sale, as long as the payout clears the mortgage and costs. Speed matters because the balance grows.
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