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A Notice of Sale is not an eviction, and it is not the end of the road. Ontario's Mortgages Act gives you a defined window and several real options — and the earlier in that window you act, the more of them are still open. This page explains the timeline honestly, including the options that don't involve selling and don't involve us.
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1. The sale generally can't happen for at least 35 days after notice is served.
2. During that window you can usually reinstate the mortgage by paying the arrears and costs — not the whole balance.
3. If the home sells for more than what's owed plus costs, the surplus is legally yours, not the lender's.
Power of Sale is the route most Ontario lenders take when a mortgage goes into default. It's faster than foreclosure and it doesn't transfer ownership of your home to the bank — it gives them the right to sell it and recover what they're owed. The difference matters: in a Power of Sale, any money left over after the mortgage, the subsequent charges and the lender's costs belongs to you.
You miss payments. Under the Mortgages Act, the lender generally cannot serve notice of its intention to exercise Power of Sale until the default has continued for at least 15 days. This is the cheapest possible point to fix the problem — before legal costs start accumulating on your file.
Sent by registered mail. It sets out the mortgage, the amount required to bring it current, and a statement that the property will be sold if you don't. Copies go to other parties with an interest in the property — second mortgagees, and in the case of a matrimonial home, your spouse. Do not ignore it, and do not stop opening mail from your lender.
The lender generally cannot complete a sale until at least 35 days after the notice is given. Throughout this period you can typically redeem — bring the mortgage back into good standing by paying the arrears plus the lender's costs to date. You are not required to pay off the entire mortgage to do this.
The lender takes possession where necessary and markets the property. They have a legal duty to act in good faith and take reasonable steps to obtain fair market value. Even at this stage, paying out the mortgage in full may still stop the sale, depending on the mortgage terms and how far the process has gone.
The first mortgage, then subsequent encumbrances in order of priority, then the lender's legal and carrying costs. Anything remaining is paid to you. If the sale doesn't cover the debt, you may still be liable for the shortfall — which is exactly why selling on your own terms usually produces a better outcome than waiting.
This page is general information, not legal advice. Your mortgage terms, your equity position, whether the home is a matrimonial home, and whether there are second mortgages all change what applies to you. A licensed Ontario real estate or insolvency lawyer can tell you what's actually true for your file — often in a single consultation. If cost is the barrier, Legal Aid Ontario and the Law Society of Ontario's referral service are starting points.
We'd rather you pick the right option than the one that produces a commission. Most of what follows doesn't. Read all five before you decide anything.
Pay the arrears plus the lender's costs and the mortgage returns to good standing. Family loans, a lump sum, a change in employment, an insurance or severance payment — if the shortfall was temporary and you can cover it, this is almost always the cheapest outcome. Call the lender and ask for the exact reinstatement figure in writing; it grows as legal costs accrue, so the number you get today is not the number next month.
If you have equity, a mortgage broker may be able to place a new first or a private second that clears the arrears and buys you time. Rates and fees on private financing are high and it is genuinely a bridge, not a solution — but a bridge to a spring market or a new job can be worth it. Ask for the total cost including lender fees, broker fees and legal costs before you sign anything.
Lenders do not want to take your house; the process is slow and expensive for them too. Depending on the lender and the circumstances, options can include a repayment plan spreading the arrears over time, a short-term payment deferral, extending the amortization, or agreeing to hold off while you list the property yourself. You have to ask, in writing, and follow up.
This is the one we can help with. A home you list and sell normally — staged, marketed, with a closing date you choose — almost always nets more than the same home sold by a lender to a buyer who knows it's a Power of Sale. More net proceeds means more surplus to you, a lower chance of a shortfall you'd remain liable for, and a controlled move rather than a forced one. It's also the option with the shortest runway, which is why timing matters.
If the mortgage is one part of a larger debt problem, a consumer proposal or bankruptcy may address the whole picture in a way that selling the house won't. Licensed Insolvency Trustees are federally regulated and the initial consultation is typically free. This is a real option, not a last resort, and we will happily point you toward one instead of toward a listing agreement.
A warning. Financial distress attracts predators. Be very careful with anyone who contacts you unsolicited after your notice becomes public record, asks for a large upfront fee to "save" your home, wants you to transfer title or add someone to title, or pressures you to sign quickly. Legitimate professionals will encourage you to get independent legal advice. Anyone discouraging that is telling you something important about themselves.
When a lender sells under Power of Sale, the listing is marked as such. Buyers know it. Every offer arrives with that knowledge priced in, the property is often vacant and shows poorly, and there's no seller motivated to fix the small things that make a home present well. The lender's obligation is to obtain fair market value — not to maximize your surplus.
When you sell, the picture changes:
No pressure and no listing agreement in the first meeting. We'll tell you what the home is realistically worth today, what it would net after the mortgage and costs, and how that compares to reinstating or refinancing. If the honest answer is "don't sell," that's the answer you'll get. Everything discussed stays between us.
Under the Mortgages Act, the sale generally cannot be made until at least 35 days after the Notice of Sale is given, and notice itself cannot be given until the default has continued at least 15 days. Additional notice requirements apply in some situations, including where a spouse has rights in a matrimonial home. Your specific timeline depends on your mortgage and your circumstances — a lawyer can confirm it, and it's worth the call.
Generally no, not during the redemption period. Reinstating typically means paying the arrears plus the lender's costs incurred to that point. Once the process advances further, the lender may require payment of the full balance. Ask your lender for the current figure in writing, and ask again if time passes — costs continue to accrue.
No. In a Power of Sale, the lender recovers the mortgage debt, subsequent encumbrances in priority, and their costs. Any surplus is legally owed back to you. The concern isn't that the lender keeps your equity — it's that a lender-run sale, plus accumulated legal and carrying costs, usually leaves a smaller surplus than a sale you'd run yourself.
Potentially yes. If the sale proceeds don't cover the debt and costs, the lender may pursue you for the shortfall. This is one of the strongest arguments for acting early and selling on your own terms — a higher sale price protects you on both ends.
A Notice of Sale is registered on title and becomes part of the public record, which is why unsolicited mail and calls often start arriving. If you list the property with us, it's marketed as a normal sale — nothing in the listing indicates your circumstances, and we can arrange showings to minimise disruption.
It's later, but it's often not over. Paying out the mortgage may still stop a sale depending on your mortgage terms and how far things have progressed, and a lender may still agree to hold off if you have a signed agreement of purchase and sale in hand. Speak to a lawyer immediately — at this stage, days matter.
No. In foreclosure, the lender applies to the court to take ownership of the property outright and you lose any equity in it. Power of Sale gives the lender the right to sell and recover what they're owed, with the surplus returning to you. Power of Sale is far more common in Ontario.
Nothing, and it doesn't obligate you to list. If the right answer is refinancing, a repayment plan, or a consumer proposal, we'll tell you that and point you to the right professional.