Stop Power of Sale in Ontario
We lend on your home's equity to pay the arrears and stop the sale, often within days.
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To stop a power of sale in Ontario, you must bring the mortgage back into good standing before the lender completes a sale — by paying the arrears and the lender’s costs, refinancing with a new first or second mortgage, or selling the home on your own terms. Lenders would rather be repaid than sell your property, and Ontario law builds real time into the process. Mortgage Broker Store arranges urgent private financing for homeowners at every stage described below.
What Is a Power of Sale in Ontario?
In Ontario, both traditional and private lenders have processes to recover mortgage funds if payments are missed. Lenders utilize two methods to handle mortgage default: foreclosure1 and Power of Sale2. In Ontario, Power of Sale is the method lenders use most when a property goes into default.
What is Power of Sale? In this default process, the homeowner retains ownership, but the lender gains the legal right to sell the property to recover the mortgage debt. Under section 22 of the Mortgages Act, the homeowner keeps the right to stop the process at any point before a sale takes place3.
A homeowner is in default after falling behind on monthly mortgage payments or failing to meet other mortgage terms. Default can lead to legal action such as foreclosure or Power of Sale proceedings. Mortgage default remains rare: as of April 2026, only 0.28% of Canadian mortgages were in arrears, according to the Canadian Bankers Association4.
The Power of Sale Process in Ontario, Step by Step
The power of sale process in Ontario follows five steps set out in the Mortgages Act and the Rules of Civil Procedure. Each step below also notes what you can still do to stop the sale at that point:
- Allow for 15 days – Once a borrower has fallen into arrears, the Ontario Mortgages Act5 requires that the lender allows 15 days for the borrower to try to rectify the situation before the lender—traditional or private— can exercise the Power of Sale. At this stage, simply catching up on the missed payments ends the matter before any notice is issued.
- Send a Notice of Sale to Borrower – If the arrears are not cleared within those 15 days, the lender can notify the homeowner. This is an official Notice of Sale, signalling borrower default and opening the redemption period. Under section 32 of the Mortgages Act, the lender cannot sell the property until at least 35 days after the notice has been given6. At this stage, paying the arrears and costs — or refinancing — cures the default and stops the sale.
- Lender Will Issue a Statement of Claim – If the borrower does not pay what is due by the redemption period, the lender has the legal right to issue a Statement of Claim to address the debt owed and take possession of the property. The claim is filed with the Ontario Superior Court of Justice, and mortgage actions are governed by Rule 64 of the Rules of Civil Procedure7. At this stage, you can still pay or refinance, but the lender’s legal fees are now added to what you owe.
- Lender Can Apply to Take Possession of the Property – After the Statement of Claim has been issued. If the borrower fails to pay the mortgage or fees, the lender may seek court permission for possession and eviction, enforced through a writ of possession under Rule 60.10 of the Rules of Civil Procedure8. The current owners must leave by the specified date or face forcible removal by authorities. At this stage, options narrow sharply; paying the full amount owing before a sale completes can still stop the process.
- Take Steps to Sell the Property – In the final step of the Power of Sale, the lender can possess and sell the property in its current condition. The previous owner is responsible for substantial fees, reducing profits significantly in Power of Sale. Under section 27 of the Mortgages Act, the sale proceeds are applied first to the costs of the sale and the mortgage debt, and any surplus must be paid back to the homeowner9. Once a binding sale closes, the process can no longer be stopped.
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Trustindex verifies that the original source of the review is Google. How to Stop a Power of Sale in Ontario
The Power of Sale process moves more slowly than most homeowners fear. The Mortgages Act10 requires a 15-day waiting period before a Notice of Sale can be issued, plus a redemption period of at least 35 days after it, and court steps add more time. In our experience, the whole process typically takes about six months from notice to possession. The Financial Consumer Agency of Canada11 also outlines relief measures, such as mortgage payment deferrals, that may help homeowners in short-term difficulty. That six-month window allows for several options:
- Sell the house before the lender takes final possession – There are buyers in Ontario who will purchase your property in its current state. Our guide on how to sell your house fast covers running an urgent sale with a real estate agent, and if a notice has already been served, see our guide to selling your home during a power of sale. A current appraisal and local comparables set a realistic price, the property sells as-is with no renovation spending, and you avoid the heavy costs a completed power of sale adds.
- Obtain a second mortgage on your property – By taking out an additional mortgage on your current property, you gain funds to pay off the arrears and comfortably cover the monthly payments. Most second mortgages are offered by alternative lenders and not banks. Tapping into home equity this way keeps you in control and, with on-time payments, helps rebuild your credit.
- Take out a new primary mortgage– Another option is to replace the defaulted mortgage with a new one entirely. Well-established private lenders throughout Ontario will assess Loan-To-Value (LTV) on your property by evaluating a recent assessment. Private lenders offer up to 75% LTV of the property’s value, needing more than 25% equity. LTV — all existing and proposed mortgages divided by the appraised value — is the single most important factor for a private lender.
How Fast Can a Power of Sale Be Stopped?
A power of sale can be stopped at any point before the lender completes a binding sale of the property. Paying the arrears and the lender’s reasonable costs under section 22 of the Mortgages Act brings the mortgage back into good standing immediately. In practice, speed depends on the remedy: a payout from savings or family takes effect as soon as the lender receives it, while a refinance needs a current appraisal and legal work, so the earlier in the redemption period you start, the smoother it goes. The closer a file gets to court-ordered possession, the fewer lenders will consider it — the best day to get advice is the day the notice arrives.
What Does It Cost to Stop a Power of Sale?
The minimum cost to stop a power of sale is the mortgage arrears plus the lender’s legal and administrative costs, which must be covered to reinstate the mortgage. If you refinance with a private mortgage instead, rates typically run 8% to 12%, plus about 2% more when the property is already in an active legal proceeding such as power of sale. Lender and broker fees are 2% to 3% each, an appraisal is about $600 plus HST, and legal work typically runs $1,500 to $3,000. That is still far cheaper than letting the process finish: in our client files, a completed power of sale can add up to $30,000 in legal, realtor, and administrative fees. Current figures are always on our lending guidelines and pricing page.
Who Can Help Stop a Power of Sale in Ontario?
A mortgage broker who works with private lenders is usually the fastest way to stop a power of sale, because banks and credit unions rarely refinance a mortgage that is already in default. Mortgage Broker Store provides this kind of urgent financing for houses and condos across Ontario, while a real estate lawyer handles the legal side of the proceeding.
Mortgage Broker Store has specialized knowledge of the Power of Sale process, documented in our guide on how to stop a Power of Sale. Our network of private lenders can clear the arrears and legal fees while preserving your home’s value.
Looking to Buy a Power of Sale Home?
This page is written for owners trying to keep their homes — but if you are a buyer searching for power of sale properties, we can help with that too. Current power of sale and distress listings across Ontario are posted on our sister site, Power of Sales Ontario, and regularly include power of sale homes in Bolton, Toronto, and the rest of the GTA. Our licensed real estate agent can guide offers on these properties.
Information regarding power of sale, foreclosure, and related legal processes is provided for educational purposes only and should not be relied upon as legal advice. Laws and procedures may change. Readers should consult a qualified lawyer regarding their specific situation.
Power of Sale Ontario FAQ
Answers to common questions about this Mortgage Broker Store page.
Does a power of sale affect my credit score?
The missed payments that lead to a power of sale are already reported to the credit bureaus, and any shortfall the lender pursues afterward can appear as a court judgment. Stopping the process and keeping the replacement mortgage in good standing limits the damage and starts rebuilding your score.
Can I get my house back after a power of sale is complete?
Generally no. Once the lender completes a binding sale to a new buyer, the former owner can no longer redeem the property. Any surplus left after the mortgage debt and selling costs must be paid back to you, but the home itself is gone — which is why acting before the sale closes matters.
Can a private mortgage stop a power of sale?
A private mortgage may help if there is enough equity to pay the arrears, costs, and any required debts. The lender will still need a clear exit plan, current property value, and legal review. Total borrowing, including the new loan, usually needs to stay within 75% of the appraised value.
What information should I prepare for a power of sale review?
Prepare the lender notice, recent mortgage statement, property tax balance, estimate of property value, income details if available, and any court or lawyer correspondence.
References
- Rules of Civil Procedure, R.R.O. 1990, Reg. 194, Rule 64 — foreclosure and other mortgage actions in the Superior Court of Justice ↩︎
- Mortgages Act, R.S.O. 1990, c. M.40, s. 24 — statutory power of sale where a mortgage is in default ↩︎
- Mortgages Act, R.S.O. 1990, c. M.40, s. 22 — right to pay arrears and costs before a sale and be relieved from the consequences of default ↩︎
- Canadian Bankers Association, Mortgages in Arrears — national arrears rate of 0.28% as of April 2026 ↩︎
- Mortgages Act, R.S.O. 1990, c. M.40, s. 32 — notice of sale may only be given after default has continued for at least 15 days ↩︎
- Mortgages Act, R.S.O. 1990, c. M.40, s. 32 — no sale until at least 35 days after the notice of sale has been given ↩︎
- Rules of Civil Procedure, R.R.O. 1990, Reg. 194, Rule 14 and Rule 64 — commencing a Statement of Claim and mortgage actions; see also the Ontario Superior Court of Justice ↩︎
- Rules of Civil Procedure, R.R.O. 1990, Reg. 194, Rule 60.10 — writ of possession ↩︎
- Mortgages Act, R.S.O. 1990, c. M.40, s. 27 — application of sale proceeds; any surplus is paid to the mortgagor ↩︎
- Mortgages Act, R.S.O. 1990, c. M.40, s. 32 — minimum 15-day default period and 35-day notice period before sale ↩︎
- Financial Consumer Agency of Canada, Mortgage payment deferrals — relief measures for homeowners in financial difficulty ↩︎