Your payment is 15 days late. Your lender can now start the power of sale process.
That does not mean you have lost your home. It means the clock has started. What you do in the next few weeks decides how much of your equity you keep.
This guide covers the Ontario timeline, your options, and why selling on your own terms usually leaves you with more money.
This article is general information, not legal advice. Speak with a real estate lawyer about your specific situation.
What is power of sale?
Power of sale lets your mortgage lender sell your home if you default on the mortgage. In Ontario, the lender does not need to take ownership through the courts first. It sells the home directly and pays itself from the proceeds.
Any money left after the mortgage, the lender’s costs, and other debts on the property goes to you.
The Ontario power of sale timeline
- Step 1: Default. Your payment is missed. Once it is at least 15 days in default, the lender can issue a Notice of Sale. (Mortgages Act, s. 32 — exact days can vary with your mortgage documents.)
- Step 2: Notice of Sale. You receive a Notice of Sale Under Mortgage. It gives you at least 35 days to pay what is owed.
- Step 3: The notice period. During those 35 days, the lender cannot take further steps to sell. This is your strongest window to act.
- Step 4: Possession and listing. If the debt is not paid, the lender can move to take possession and list the home for sale.
- Step 5: Sale. The lender sells the home. You receive any surplus after all costs are paid.
From the first missed payment to the final sale, the process often runs several months. Every week of that time adds legal fees and interest to what you owe.
Your four options
- Bring the mortgage back into good standing. Ontario law lets you stop the process by paying the arrears plus the lender’s costs before the home is sold. If you can raise the money, this keeps your home.
- Refinance with another lender. If you have equity, a different lender may pay out your current mortgage. Rates will likely be higher. It buys time to stabilize.
- Sell the home yourself. You list the home with your own agent, at market value, on your timeline. You pay off the mortgage from the sale and keep the rest. Start with a free home evaluation to find out what your home is worth today.
- Let the lender sell. This is the most expensive path. Here is why.
Why selling yourself protects your equity
When the lender sells, you pay for everything on the way out:
- The lender’s legal fees
- Interest and penalties that keep building every month
- Property tax, insurance, and maintenance while the home sits
- The lender’s real estate commission
Buyers also know a bank sale is a motivated sale. Power of sale homes are sold as is. Buyers shop them looking for a discount, and they negotiate hard.
When you sell first, you control the price, the preparation, and the timing. You present the home as a normal listing, not a distressed sale. The difference can be tens of thousands of dollars of equity that stays with you.
Buyers looking for value can browse current power of sale listings here.
What to do this week
- Read your Notice of Sale. Note the date and the amount required to stop the sale.
- Call a real estate lawyer. Confirm your exact deadlines and rights.
- Get a current market value. You need to know your equity to choose the right option.
- Talk to your lender. Some lenders will hold off if a sale is already in progress.
- Act inside the 35-day window. Waiting only adds costs.
Confidential help from an agent who knows bank sales
I work on both sides of power of sale in Hamilton, Burlington, Halton, and Peel. I know how lenders price these homes and how buyers negotiate them. That is exactly what you need to avoid.
Every conversation is confidential. I will give you a market value for your home and a clear plan to sell before the lender does.
Call 647-907-6386 or book a confidential consultation.
Service available in English, Gujarati, and Hindi.
Frequently asked questions
Q: How long does power of sale take in Ontario?
A: After a payment is 15 days in default, the lender can send a Notice of Sale with at least 35 days to pay. From the first missed payment to the final sale, the process often takes several months.
Q: Can I stop a power of sale in Ontario?
A: Yes. You can usually stop it by paying the arrears and the lender’s costs before the sale closes, by refinancing, or by selling the home yourself.
Q: Do I get any money if my house is sold under power of sale?
A: Yes. Any surplus left after the mortgage, the lender’s costs, and other registered debts is paid to you.
Q: Can I sell my house during power of sale?
A: Yes. Selling during the notice period is often the best way to protect your equity. Confirm timing with your lawyer and your lender.
Q: Is power of sale the same as foreclosure?
A: No. With foreclosure, the lender takes ownership through the courts. With power of sale, the lender sells the home and you keep any surplus. Power of sale is far more common in Ontario.
Parth Jani, Broker | HouseSigma Inc. Brokerage | 647-907-6386
Disclaimer: This article is general information and not legal or financial advice. Consult a real estate lawyer about your situation.
Sources: Ontario Mortgages Act, R.S.O. 1990, c. M.40, s. 32 (15-day default / 35-day notice periods; exact terms vary by mortgage documents).