Power of sale in Ontario occurs when a homeowner fails to meet their mortgage obligations. If a mortgage falls into arrears—typically more than three months of missed payments—the lender may consider the borrower in default, initiating the power of sale process.

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The first official step is to issue a "Notice" of Sale" or "N "tice" of Sale Under Mortgage," which" states that the mortgage is in default, outlines the required payments, and provides a deadline for resolving the issue.

 

Power of sale is Ontario's most common remedy for mortgage default. It allows the lender to sell the property to recover their investment. Unlike foreclosure, where the lender takes ownership of the property, power of sale involves selling the home and using the proceeds to pay off the mortgage, legal, and real estate fees. Any remaining funds go to the former homeowner, though fees, often exceeding $30,000, may leave little behind. You've received a Notice of Sale, so it is critical to act quickly, as fees and penalties can escalate rapidly. Contact us today to explore your options and protect your best interests.