Behind on your mortgage, or facing power of sale in Ontario?
There is usually more time and more options than it feels like — but they shrink with every week that passes. A confidential call today costs nothing and clarifies where you actually stand.
What is actually happening
Power of sale is the process most Ontario lenders use to recover a defaulted mortgage. It is not the same as foreclosure. The lender sells the property, takes what it is owed plus costs, and any surplus belongs to you — which is precisely why protecting the equity matters so much.
After default the lender issues a Notice of Sale. The redemption period that follows is generally a minimum of 35 days. Confirm the exact dates on your own notice with a lawyer, because the circumstances change the arithmetic.
Your realistic options
- Reinstate. Pay the arrears plus the lender’s costs within the redemption period and the mortgage returns to good standing.
- Refinance or take a new mortgage. If there is equity but not cash, a private lender or MIC can pay out the existing lender. These decisions are equity-led, so arrears and bruised credit are not automatic disqualifiers.
- Sell on your own terms. List and sell before the lender does. You keep control of price and timing, which almost always returns more.
- Negotiate. Sometimes a lender will accept a repayment arrangement. Having someone make that case on your behalf helps.
The timeline is the whole thing
Equity-based approvals commonly come within a day or two and fund in one to three weeks. That fits comfortably inside a 35-day redemption period — if the work starts promptly.
Start in week three and the same options are far harder to execute. Nothing about this gets easier by waiting, and the costs only accumulate.
What I will need
The Notice of Sale or demand letter if you have one, your current mortgage statement, a rough sense of the property value, and any other debts registered against the title. That is usually enough for a straight answer on the same day.
An honest word
Not every property can be saved, and I will not pretend otherwise to win a file. Sometimes the numbers say an orderly sale protects far more of your equity than borrowing again at a higher cost. If that is what the situation says, I will tell you plainly and early, while you still have choices.
Related: second mortgages, private mortgages, debt consolidation, CRA arrears.
Arrears and power of sale, answered
How long do I have after a Notice of Sale in Ontario?
A Notice of Sale under a mortgage in Ontario generally gives a redemption period of at least 35 days before the lender can proceed to sell. That period is a minimum set by the Mortgages Act, not a countdown to losing the home, and paying the amounts set out in the notice within it reinstates the mortgage. Timelines vary with the circumstances, so confirm the dates on your own notice with a lawyer.
Can a power of sale be stopped?
Often, yes, if you act early. Bringing the arrears and costs current stops it. So does refinancing or a new mortgage that pays out the lender, or selling on your own terms before the lender lists it. The realistic options narrow as the timeline advances, which is why the first two or three weeks matter most.
Will a lender refinance me while I am in arrears?
A bank usually will not. Private lenders and mortgage investment corporations do it regularly, because they lend primarily against equity in the property rather than credit score or income documents. Approvals commonly come in a day or two and funding within one to three weeks.
Is selling the house the failure option?
No. Selling on your own timeline, with your own agent, usually returns considerably more than a lender-led sale and protects your credit far better. If the numbers do not support keeping the property, an orderly sale is frequently the strongest outcome available.
What does it cost to stop a power of sale?
You would be repaying the arrears plus the lender’s legal and administrative costs, and if a new mortgage is arranged, its rate and fees. Expensive compared with prime lending, and considerably cheaper than losing the equity in a forced sale.
What is the single biggest mistake people make?
Doing nothing for the first two or three weeks. The redemption period is long enough to arrange a remortgage or a sale, but only if the work starts immediately. Waiting removes the options that were available on day one.
The call is confidential and costs nothing
No application, no credit pull. Just a clear read on where you stand, what the deadlines really are, and which options are still open.
This page is general information about mortgage options in Ontario. It is not legal advice. Deadlines and rights depend on your specific notice and circumstances — speak with a real estate lawyer about your own situation.
Rajiv Verma, Mortgage Broker · Mortgage Architects, FSRA Brokerage Licence #12728 · Serving Ontario. General information about mortgage options, not legal, accounting, tax or insolvency advice, and not an offer of credit. Final approval depends on the complete application and lender review.