Updated: June 2026
By Françoise Pollard, Realtor®, and Keith Goldson, Broker, Keith & Françoise Real Estate Team, eXp Realty Brokerage. We help homeowners across the GTA and Niagara Region facing power of sale. Whether the right path is selling, refinancing, or challenging the process, we’ll help you understand your options.
In Ontario, you can stop power of sale in several ways: paying your arrears in full, negotiating a repayment arrangement or loan modification, refinancing, selling the property yourself, or challenging procedural errors with a real estate lawyer. Under the Mortgages Act, you have at least 35 days after the Notice of Sale is served to act. The sooner you start, the more options remain available.
On This Page
- What is power of sale in Ontario?
- The power of sale timeline in Ontario
- How to stop a power of sale in Ontario
- Mistakes that lead to losing the home
- Selling yourself vs. letting the lender sell
- Power of sale vs. foreclosure
- How it affects your credit
- Power of sale by local market
- What to do when you receive a notice
- Frequently asked questions
If your lender has started the power of sale process in Ontario, you still have options. Ontario law gives homeowners specific rights and a defined window to stop power of sale before the property is sold. How much time you have depends on where you are, and waiting to find out is the most costly mistake homeowners make.
Most homeowners don’t lose their home because the law gives them no recourse. They lose it by waiting too long or assuming nothing can be done. This guide explains the process, your timeline, and the legitimate ways to stop it. For the bigger picture, see our guide to selling a home in Ontario.
What Is Power of Sale in Ontario?
Power of sale is a legal remedy that allows a mortgage lender to sell your home when you default on your mortgage. The Mortgages Act (Ontario) governs the process. It is the most common method lenders use to recover unpaid mortgage debt in the province.
Unlike foreclosure, power of sale lets the lender sell the property while title stays in your name until closing. That distinction matters for two reasons. First, you keep any surplus after the lender recovers what you owe. Second, you retain certain legal rights that give you a genuine window to act before the sale completes.
Default doesn’t only mean missed payments. Breaching other mortgage covenants, such as letting property insurance lapse or falling behind on property taxes, can also trigger the process. In practice, most power of sale situations in Ontario start with missed mortgage payments that accumulate over several months before the lender initiates formal enforcement.
The Power of Sale Timeline in Ontario
The process follows a defined sequence under the Mortgages Act. Where you are in that sequence determines which options you have and how much time remains to use them. The most important window to stop a power of sale is the redemption period.
Power of Sale Timeline in Ontario
Missed Payments
After 15 days of default, the lender can issue a Notice of Sale. In practice, most lenders wait until payments are about three months in arrears.
Notice of Sale Under Mortgage
The lender serves the notice on every person with a registered interest in the property. This starts the legal process.
Redemption Period (at least 35 days)
Your primary window to stop the process. At least 35 days for most mortgages with a power of sale clause, or 45 days where the lender relies on the statutory power of sale under the Act.
Property Listed by Lender
Once the redemption period expires, the lender can list the property for sale. You still own it, but you’re now in competition with time.
Sale Closes
Once the lender’s sale closes, your options end. Any surplus goes to you. Any shortfall can still be pursued as a deficiency judgment.
Why the Redemption Period Matters Most
The 35-day redemption period is where you have the most options and the strongest position. During this window, you can still redeem, refinance, negotiate, or list the property on your own terms. After the redemption period closes, your right to redeem technically continues until the lender’s sale closes, but your practical options narrow significantly with each passing week.
How to Stop a Power of Sale in Ontario
There are four legitimate ways to stop a power of sale in Ontario, plus one legal safeguard worth adding. Each works at a different stage of the process, and the earlier you start, the more paths remain open.
1. Bring the Mortgage Back Into Good Standing
The most direct way to stop power of sale is to pay what you owe: missed payments, interest, penalties, and the lender’s legal costs. This is called your right of redemption. Once you pay those amounts in full, the lender must stop the process and reinstate your mortgage. You can exercise this right surprisingly late in the process, in many cases right up until just before the lender’s sale closes. This path works best when a temporary disruption caused the default and your income has since stabilized.
2. Refinance the Property
If you don’t have the cash to reinstate, refinancing replaces your current mortgage with a new one at manageable terms. This is extremely common in Ontario power of sale situations. If the default has hurt your credit, traditional lenders may decline. Private lenders, second mortgages, and bridge solutions may still work at higher rates. Before signing with a private lender, have a real estate lawyer review the terms. Some private mortgage products carry fees and conditions that can make your situation worse, not better.
3. Sell the Home Before the Lender Does
This is the path most homeowners underestimate. As long as title remains in your name, you can list the property and sell on your own timeline. The lender’s goal is debt recovery, not maximizing your equity. When you sell yourself, you control pricing, marketing, and the closing timeline. The proceeds pay off the mortgage in full, and you keep whatever equity remains. A well-managed sale on your own terms also protects your credit far better than a completed power of sale.
Buyers also submit lower offers on power of sale listings because they assume the property has problems and is being sold as-is with no seller representations. Listing yourself on the open market, with professional photography, staging, and accurate pricing, can produce significantly higher net proceeds than letting the lender complete the sale. For guidance on pricing, see our article on choosing the right pricing strategy when selling a home. For a fuller diagnosis of why distressed listings underperform, see our article on why homes don’t sell in the GTA and Niagara Region.
4. Negotiate With the Lender
The single most useful thing you can do is talk to your lender early. Notify them the moment you know you can’t make a payment, not when the Notice of Sale arrives. Most lenders prefer to recover their money without selling the property. The earlier you reach out, the more willing they tend to be. Three options are worth raising directly: a loan modification that adjusts your rate, amortization, or payment amount; a repayment plan that adds missed payments to future instalments; or a payment deferral that pauses payments while you stabilize your income.
This path only works early in the process and only if your communication with the lender is strong and consistent. Lenders don’t have to offer any of these options, but many will consider them if you can show a realistic plan to resume payments. Get every offer in writing and keep records of every conversation.
Lenders are not in the business of selling homes, and a power of sale is costly and slow for them too. If you have already listed the property, give your lender a copy of the MLS listing. It shows them you are taking action. Too many homeowners avoid the call out of fear or embarrassment. That instinct works against you. Your lender is human, and in most cases will work with a homeowner who communicates honestly and early.
Consult a Real Estate Lawyer (Legal Safeguard)
A lawyer who handles power of sale cases can review your Notice of Sale for procedural errors. If the lender failed to serve the notice properly or missed a party with a registered interest, that mistake may void or delay the process. Under Section 42 of the Mortgages Act, lenders are prohibited from taking enforcement steps during the notice period itself. If a separation or divorce is involved, both spouses may have rights under the Family Law Act even if only one name appears on the mortgage, and a spouse must be served where the property is a matrimonial home. Legal advice at this stage costs far less than the alternatives.
Mistakes That Lead to Losing the Home
Most homeowners who lose their home to power of sale didn’t run out of options. They ran out of time. The mistakes are predictable, and they’re avoidable.
Waiting too long to act. The 35-day redemption period is not a suggestion. Every day that passes narrows your options. Homeowners who call a lawyer or Realtor® within the first week consistently preserve more equity than those who wait until week three.
Ignoring lender notices. Many homeowners stop opening mail from the lender because it feels overwhelming. Those letters contain your deadlines. Missing them doesn’t stop the clock. It eliminates the options that were available while the clock was running.
Assuming nothing can be done. Once power of sale starts, many homeowners assume they’ve already lost the home. That assumption is wrong. You retain your right of redemption until the lender’s sale closes, and you can list the property yourself at any point before that.
Not listing early enough. If selling is the right path, waiting until the redemption period is almost over compresses the window for a well-managed sale. A rushed listing attracts opportunistic buyers and lower offers. An early listing attracts the full market.
Signing with the wrong private lender. Refinancing with a private lender to stop power of sale can save the home, but only if the terms are reasonable. Some private mortgage products carry fees and conditions that accelerate the same financial pressure the homeowner was trying to escape. Have a lawyer review the terms before signing.
The Wider Impact of Power of Sale
What We’re Seeing on the Ground
Lenders have a duty to take reasonable steps to sell a power of sale home at fair market value. In practice, these properties usually sell for less. As-is condition, no seller representations, and buyers hunting for a discount all push the price down. When that happens, it doesn’t only affect the distressed seller. A low sale price becomes a comparable that can pull down values for other homes nearby. When several power of sale listings cluster in one community, the effect compounds. It hurts both the families in default and the neighbours who are simply trying to sell.
The harder pattern to watch is the human one. Many homeowners know they are in trouble but hold on to the last dollar. They spend on brokers and lawyers to stop a process that often can’t be stopped, and come out with nothing. By the time they accept it, their credit is already damaged. That makes finding a rental far harder than it needed to be. Almost all of this is avoidable. Acting early, while you still control the sale, protects your equity, your credit, and your ability to house your family next.
The hardest part is that the call often comes too late. The better moment is usually a year or two earlier, when the payments first feel tight. At that stage we sometimes give hard advice. Sell or downsize now, rent for a while, and step back into the market when your finances recover. Most people don’t take it. A second mortgage or a renewal at a higher rate can turn a tight situation into a lost one. Owning a home is not the only path. Protecting your finances and your family matters more than holding on at any cost.
Selling Yourself vs. Letting the Lender Sell
If keeping the home isn’t realistic, the question becomes how to protect whatever equity remains. The difference between selling yourself and letting the lender sell is often tens of thousands of dollars.
If the Lender Sells
- Lender controls pricing and timing
- Goal is debt recovery, not your equity
- Property often sold as-is
- Buyers submit discounted offers
- Sale recorded on your credit report
- Any shortfall can be pursued as a deficiency
If You Sell
- You control pricing and presentation
- Professional staging and photography
- Full market exposure on MLS
- Offers reflect actual fair market value
- Credit impact limited to missed payments
- You keep whatever equity remains after payout
How Much Equity Is at Stake
The gap is real. Power of sale listings routinely sell below what a well-marketed sale would produce. Buyers expect a discount, and the property is sold as-is with no seller representations. On a home worth several hundred thousand dollars, even a small percentage gap means tens of thousands in lost equity. A well-managed sale on your own terms preserves that equity and protects your credit. For more on what drives a successful sale in the current market, see our article on what actually sells homes in the GTA right now.
We’ve Seen This Play Out
We worked with a homeowner in the GTA who called us shortly after receiving a Notice of Sale. Refinancing wasn’t possible because of a recent job loss, but the home had significant equity. We listed the property right away and coordinated the closing with the lender and the client’s lawyer. The mortgage was paid in full, and the client kept enough equity to secure a rental and move forward.
That outcome came down to timing. Because there was still room in the redemption window, the home reached the open market. It did not have to sell at a power of sale discount. The earlier the call comes, the more often the story ends this way.
Power of Sale vs. Foreclosure in Ontario
Many homeowners confuse these two processes, but they operate differently and produce different outcomes for the borrower.
In a power of sale, the lender sells the property to recover the debt. Title stays in your name until closing, and any surplus after debts and costs belongs to you. In a foreclosure, the lender takes full ownership through a court order and keeps everything, including equity above what you owe.
Foreclosure is rare in Ontario. It costs lenders more time and money. Power of sale is faster, cheaper for the lender, and far more common. If your lender has initiated foreclosure rather than power of sale, contact a real estate lawyer immediately.
How Power of Sale Affects Your Credit
A completed power of sale and the missed payments behind it generally stay on your credit report for about six years, the standard reporting period in Canada. Many traditional lenders treat that history similarly to a consumer proposal when reviewing a new mortgage application. Most want to see a period of re-established credit before considering you again.
If you stop the process before the lender’s sale closes, the credit damage is typically limited to the missed payments that triggered the default. Those payments still appear on your report, but the long-term impact is substantially less than a completed sale. That difference is one of the strongest reasons to act early and explore every available option before the process runs its course.
Can You Stop a Power of Sale in Mississauga, Hamilton, or St. Catharines?
Yes. The legal process is the same everywhere in Ontario, because it is governed by the Mortgages Act, not by your city. Whether your home is in Mississauga, Hamilton, Oakville, or St. Catharines, the rules are identical. The 35-day window and your options to redeem, refinance, sell, or negotiate do not change. What changes from place to place is the local market. In a stronger market with high buyer demand, selling before the lender does can happen quickly. That protects more of your equity. In a slower or more specialized market, marketing time runs longer, so acting early matters even more.
Niagara is not one market either. St. Catharines tends to move differently than quieter pockets like Niagara-on-the-Lake. We work across the GTA and Niagara Region. We can tell you how quickly a well-managed sale is likely to come together in your area, and whether that fits the window you have left.
What to Do When You Receive a Notice of Sale
If you are holding a Notice of Sale right now, take these steps in order. Every day matters.
Confirm Your Deadline
Check the date on the notice. Count at least 35 days from the date it was served. That window is 45 days if the lender relies on the statutory power of sale instead of a clause in your mortgage. A real estate lawyer can confirm which applies to you. That period is your redemption window, so mark it clearly.
Call a Real Estate Lawyer
Have the lawyer review the notice and confirm the lender followed proper procedure under the Mortgages Act. An error in service, notice content, or missing parties may give you grounds to delay or challenge the process. This step costs far less than most homeowners expect and can change the outcome entirely.
Contact Your Lender
Ask for the full reinstatement amount in writing: arrears, penalties, and legal costs as of today. Be honest about your situation and ask what they can work out with you. That number, and that conversation, are the starting point for every other decision.
Assess Your Options Honestly
Can you pay the arrears? Is refinancing realistic given your current credit? Would family assistance bridge the gap in the short term? If none of those paths are available, selling before the lender takes over is almost always the better financial outcome.
If Selling Is the Right Move, Act Now
Contact a Realtor® immediately. Time is the limiting factor in every power of sale situation. The sooner the home goes on the market, the better your chances of achieving a fair price and protecting whatever equity remains.
Keep Reading
Power of Sale in Ontario: Your Questions Answered
Can I stop a power of sale in Ontario?
Yes. You can stop a power of sale by paying the full arrears and lender costs, refinancing the mortgage, negotiating a repayment arrangement with the lender, selling the property yourself before the lender’s sale closes, or challenging procedural errors in the notice with a real estate lawyer. Your right of redemption continues until the lender’s sale closes, though your practical options narrow significantly after the initial 35-day notice period.
How long do I have to stop a power of sale in Ontario?
You have at least 35 days after the Notice of Sale is served to redeem your mortgage. That period is 45 days if the lender relies on the statutory power of sale rather than a power of sale clause in your mortgage. Your right to redeem then continues until the lender’s sale closes, though your practical options narrow after the initial notice period. If the property is a matrimonial home, a spouse may also have rights under the Family Law Act and must be served.
Can I sell my home during the power of sale process?
Yes. As long as title remains in your name, you can sell the property yourself. Selling on the open market almost always produces a higher price and gives you more control over the outcome than a lender-driven power of sale. The proceeds pay off the mortgage in full, and you keep whatever equity remains. Contact a Realtor® as early as possible in the process.
What happens if the lender sells for less than I owe?
If the lender’s sale doesn’t cover the outstanding mortgage balance, legal costs, and fees, the lender can pursue you for the shortfall through a deficiency judgment. This is one of the strongest reasons to sell yourself if keeping the home isn’t realistic. A properly marketed sale on the open market routinely produces a higher price than a lender-driven sale, reducing or eliminating the risk of a deficiency.
Can I stop power of sale if I only pay part of what I owe?
No. To formally redeem your mortgage and stop power of sale, you must pay the full amount owing: arrears, penalties, and the lender’s legal costs. Partial payment does not stop the process. That said, you can negotiate a repayment plan or loan modification directly with your lender, which is a separate path from formal redemption under the Act.
Does a power of sale affect my credit score?
Yes. A completed power of sale and the missed payments behind it generally stay on your credit report for about six years, and most traditional lenders treat it similarly to a consumer proposal. If you stop the process before the sale closes, the credit damage is generally limited to the missed payments that triggered the default. Acting early makes a significant difference to your long-term credit recovery.
Is power of sale the same as foreclosure in Ontario?
No. In a power of sale, the lender sells the property to recover the debt and returns any surplus to you. In a foreclosure, the lender takes full ownership through a court order and keeps everything, including equity above what you owe. Power of sale is far more common in Ontario because it is faster and less costly for lenders.
Should I hire a lawyer if I receive a Notice of Sale?
Yes. A real estate lawyer can review the notice for procedural errors under the Mortgages Act and advise on your full range of options. If the lender made mistakes in service or notice content, you may be able to delay or challenge the process. Legal advice at this stage costs far less than the alternatives.
Keith & Françoise Real Estate Team
eXp Realty Brokerage · GTA & Niagara Region
Françoise Pollard, Realtor®, and Keith Goldson, Broker, bring three decades of combined experience helping homeowners across the GTA and Niagara Region, including sellers facing financial hardship, divorce, and estate situations. We’ve worked with homeowners in Ontario who were weeks away from losing their home and were still able to sell and protect their equity. If you’re facing power of sale and want a clear picture of your options, we’ll give you an honest assessment with no obligation. For the full range of support we provide sellers, see our seller services in the GTA and Niagara Region.
If You’re Facing Power of Sale, Timing Matters
We’ll review your situation, explain your options clearly, and tell you honestly whether selling makes sense. If selling isn’t your best option, we’ll tell you that too. No pressure, no judgment, no obligation. The earlier you call, the more paths remain open.
Talk Through Your OptionsThis article is for general information only and does not constitute legal or financial advice. Power of sale timelines, lender obligations, and homeowner rights are governed by the Mortgages Act (Ontario) and may vary depending on individual mortgage terms, lender type, and circumstances. Consult a licensed real estate lawyer for advice specific to your situation.