Updated: March 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 understand their options when facing power of sale, whether the right path is selling, refinancing, or challenging the process with a lawyer.
In Ontario, you can stop power of sale by paying your arrears in full, negotiating a repayment arrangement or loan modification with your lender, refinancing, selling the property yourself, or challenging procedural errors with a real estate lawyer. Under the Mortgages Act (Ontario), you have a minimum of 35 days after the Notice of Sale is served to act. The sooner you start, the more options you have.
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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. What those options are, and how much time you have to use them, depends on where you are in the process.
This article explains what power of sale means in Ontario and how the legal timeline works under the Mortgages Act. It also covers the steps you can take to protect your home or your equity. For a broader look at the selling process, 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. Part III of 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 keep certain legal rights that give you a genuine window to act.
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.
How the Power of Sale Process Works in Ontario
The process follows a defined sequence under the Mortgages Act. Where you are in that sequence determines which options you have.
Step 1: Default Period
Under Section 32 of the Mortgages Act, the lender cannot issue a Notice of Sale until the default has continued for at least 15 days. In most cases, lenders wait considerably longer, often until payments are three months in arrears. Your lender will typically send a demand letter first, giving you a chance to bring the account current before formal enforcement begins.
Step 2: Notice of Sale Under Mortgage
After the default period, the lender issues a Notice of Sale Under Mortgage. Under Section 31, the lender must serve this notice on every person with a registered interest in the property. That includes the borrower, guarantors, subsequent mortgagees, and lienholders. Service can happen by personal delivery or registered mail.
How much time the notice gives you
If the notice goes by registered mail and the property is your matrimonial home occupied by a married couple, you get 40 days. In all other cases, the minimum is 35 days from the date of service.
Step 3: Redemption Period
The 35 or 40 days after service is the redemption period. During this window, you can redeem the mortgage by paying the full amount owing: arrears, penalties, and the lender’s legal costs. If you pay in full, the power of sale stops entirely. Your right to redeem doesn’t technically end until the lender’s sale closes. However, acting within the initial notice period is safest because your options narrow as time passes.
Step 4: Sale of the Property
Once the redemption period expires without payment, the lender can sell the property. The lender must take reasonable steps to get fair market value, though debt recovery comes first. Any surplus after the mortgage balance, costs, and legal fees goes back to you. If the sale price falls short, the lender can pursue you for the remainder through a deficiency judgment.
Five Ways to Stop Power of Sale in Ontario
Each approach works at a different stage. Some require immediate action. Others take time to arrange. The earlier you start, the more paths stay open.
1. Pay the Arrears and Reinstate the Mortgage
The most direct way to stop power of sale is to pay what you owe: missed payments, penalties, and legal costs the lender has incurred. Once you pay those amounts, the lender must stop the process and reinstate your mortgage. This works best when a temporary disruption caused the default and your income has since stabilized.
2. Negotiate With Your Lender
Most lenders prefer to recover their money without selling the property. Contact your lender as soon as you receive the Notice of Sale. Ask about three specific options. A loan modification could include a lower rate, longer amortization, or temporary payment reduction. Repayment plans spread missed payments over several months alongside your regular payments. Payment deferrals pause payments temporarily while you stabilize your income.
Lenders don’t have to offer any of these options. 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.
3. Refinance Your Mortgage
Refinancing replaces your current mortgage with a new one at manageable terms. If the default has hurt your credit, traditional lenders may decline. Private lenders or alternative mortgage companies may still help, though 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 things worse.
4. Sell the Property Yourself
If you cannot afford to keep the home, selling yourself is almost always better than letting the lender’s power of sale proceed. When a lender sells, the goal is debt recovery, not maximizing your equity. The sale price may fall below market value. Buyers often submit lower offers on power of sale listings because they assume the property has problems.
By listing on the open market with a Realtor®, you control pricing, marketing, and the closing timeline. The proceeds pay off the mortgage, 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. For guidance on pricing, see our article on choosing the right pricing strategy.
5. Consult a Real Estate Lawyer
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, missed a party with a registered interest, or made a material error, that mistake may void or delay the process. 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.
Power of Sale vs. Foreclosure in Ontario
Many homeowners confuse these two processes, but they work differently and produce different outcomes.
In a power of sale, the lender sells the property on your behalf. 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 stays on your credit report for several years. Most traditional lenders treat it similarly to a consumer proposal when reviewing new mortgage applications.
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. Most traditional lenders require two to three years of re-established credit before considering a new mortgage application after a completed power of sale.
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.
Confirm your deadline
Check the date on the notice. Count 35 days from the date it was served. If the property is your matrimonial home and you are married and living there, you get 40 days. That deadline is your redemption window.
Call a real estate lawyer
Have the lawyer review the notice and confirm the lender followed proper procedure. An error in service or notice content may give you grounds to delay or challenge the process.
Contact your lender
Ask for the full reinstatement amount in writing: arrears, penalties, and legal costs as of today. That number is the starting point for every other decision.
Assess your financial options honestly
Can you pay the arrears? Is refinancing realistic given your credit? Would family help in the short term? If none of those paths work, selling before the lender takes over is almost always the better outcome.
If selling is the right move, act fast
Contact a Realtor® immediately. Time is the limiting factor. The sooner the home goes on the market, the better your chances of getting a fair price and protecting your equity.
We’ve Seen This Play Out
We’ve worked with homeowners across the GTA and Niagara Region who were facing power of sale and weren’t sure whether to fight it or sell. In several cases, the math made the decision clear: the arrears were too large to pay off, refinancing wasn’t realistic, and the home had enough equity to make a well-managed sale the better path.
Acting quickly mattered most. We listed early, priced competitively to attract motivated buyers, and coordinated closely with the homeowner’s lawyer to manage the closing timeline. The result preserved meaningful equity and protected the client’s credit far better than waiting would have. That outcome only works when you don’t wait until the lender’s process is nearly complete.
When Selling Makes More Sense Than Stopping Power of Sale
Stopping the process isn’t always the right outcome. If you cannot afford the mortgage payments going forward, reinstating today only delays the same problem. A fast but well-managed sale on your own terms produces a better financial result than a lender-driven sale.
The key consideration is equity. If your home is worth meaningfully more than you owe, including arrears and costs, you have equity worth protecting. Selling quickly at a competitive price preserves that equity. Letting the lender’s process proceed risks leaving money on the table. Power of sale listings sell as-is with no seller representations, and buyers typically discount their offers accordingly.
We work with homeowners in this situation across the GTA and Niagara Region. The conversation starts with a clear picture of the numbers: what the home is worth today, what the total debt is, and what a realistic sale timeline looks like. From there, the right path is usually obvious. For more on what drives a successful sale, see our article on what actually sells homes in the GTA right now.
Power of Sale in Ontario: Your Questions Answered
How long do I have to stop a power of sale in Ontario?
You have a minimum of 35 days after the Notice of Sale is served to redeem your mortgage. If the property is your matrimonial home and you are married and living there, that window is 40 days. Your right to redeem continues until the lender’s sale closes, but acting within the initial notice period gives you the most options.
Can I stop power of sale if I only pay part of what I owe?
No. To redeem your mortgage, you must pay the full amount owing: arrears, penalties, and the lender’s legal costs. Partial payment does not stop the process. However, you can negotiate a repayment plan or loan modification directly with your lender, which is a separate path from formal redemption.
Does a power of sale affect my credit score?
Yes. A completed power of sale stays on your credit report for several years. Most traditional lenders treat it similarly to a consumer proposal. If you stop the process before the sale closes, the damage is generally limited to the missed payments that triggered the default.
Is power of sale the same as foreclosure in Ontario?
No. In a power of sale, the lender sells the property 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.
Can I sell my home during the power of sale process?
Yes. As long as title is still in your name, you can sell the property yourself. Selling privately almost always produces a higher price and gives you more control. The proceeds pay off the mortgage in full, and you keep whatever equity remains. Contact a Realtor® as early as possible.
Should I hire a lawyer if I receive a Notice of Sale?
Yes. A real estate lawyer can review the notice for procedural errors and advise on your options. If the lender made mistakes in service or content, you may be able to delay or challenge the process.
Keith & Françoise Real Estate Team
eXp Realty Brokerage · GTA & Niagara Region
Françoise Pollard, Realtor®, and Keith Goldson, Broker, have more than 30 years of combined experience helping homeowners across the GTA and Niagara Region, including sellers facing financial hardship, divorce, and estate sales. If you’re facing power of sale and want a clear picture of your options, we’ll give you an honest assessment.
Facing Power of Sale? Let’s Talk Through Your Options.
We help GTA and Niagara homeowners understand whether selling, refinancing, or challenging the process is the right move.
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.