In Ontario, a lender can't send a notice of sale until a mortgage default has continued for at least 15 days, and it can't sell the home until at least 35 days after the notice. Until the sale, the owner can usually stop it by paying the arrears and the lender's expenses, refinancing or selling the home themselves.
- Your fee in writing within one business day
- Reports 1–2 business days after the home visit
- Signed by an appraiser designated by the Appraisal Institute of Canada
- Past dates are fine, even years later
In this article
- Step 1: the default
- Step 2: the notice of sale, after at least 15 days
- Step 3: the notice period, at least 35 days
- Step 4: possession and listing
- Step 5: the sale and the accounting
- Your options before the sale
- Why knowing your home's value helps
- How much does an appraisal cost?
- Quick answers
- Official sources
- What happens next
Step 1: the default
A power of sale starts with a default: missed mortgage payments, unpaid property taxes or another broken term of the mortgage. Most mortgages let the lender demand the whole balance once the default happens, which is why the first letters from a lender can show a much larger number than the payments you missed.
Step 2: the notice of sale, after at least 15 days
Under section 32 of Ontario's Mortgages Act, a notice of sale can't be given until the default has continued for at least 15 days.
The notice doesn't only go to the borrower. Section 31 requires it to go to everyone shown on the title records as having an interest in the property, such as a second mortgage lender or a creditor with a registered claim. Section 33 says it is given in person or by registered mail.
Step 3: the notice period, at least 35 days
The home can't be sold until at least 35 days after the notice is given. During this period, section 42 generally stops the lender from starting other proceedings to enforce the mortgage unless a judge allows it.
This is the most important window for an owner. It is the time to get legal advice, find out exactly what is owed and decide which option below makes sense.
Facing a power of sale?
Your fee in writing within one business day, and most reports are ready 1–2 business days after the home visit.
Request a QuoteStep 4: possession and listing
If the default isn't fixed, the lender can take possession of the home to sell it. If the owner doesn't leave, the lender can go to court for an order. The lender then gets one or more independent appraisals and lists the home on the open market at a price the appraisals support.
Step 5: the sale and the accounting
From the sale price, the lender pays the costs of the sale, then the interest, costs and principal owing under its mortgage, then later mortgages and other registered creditors in order of priority. Section 27 of the Act says whatever is left is paid to the owner. If the sale doesn't cover the debt, the lender can claim the shortfall from the borrower.
Your options before the sale
- Bring the mortgage back into good standing. Section 22 lets the owner pay the amounts in default and the lender's necessary expenses at any time before the sale, even if the lender has demanded the full balance. You can ask the lender in writing for a statement of what is owed.
- Refinance with another lender. A new lender will want to know what the home is worth, and a current, independent appraisal helps it decide how much it can lend.
- Sell the home yourself. Selling before the lender does can give you more control over the price and the timing. Your lawyer can explain how this works with the lender.
- Get legal advice early. The time limits are short, and the right choice depends on your mortgage, your equity and your other debts.
Why knowing your home's value helps
Every option above starts with the same question: what is the home really worth? An independent appraisal tells you how much equity is at stake, gives a new lender a supported number for a refinance, and lets you and your lawyer check whether the lender's list price is fair. You don't have to rely only on the lender's figure. See how a home is valued in a power of sale.
How much does an appraisal cost?
At Best Home Value, power of sale appraisals start at $470 for a condo or townhouse and $575 for a detached or semi-detached house. A value as of a past date, such as the date of sale, costs more. You'll have your exact fee in writing within one business day, before anything is booked, and most reports are ready 1–2 business days after the home visit. Working to a deadline? Mention it when you request a quote.
Quick answers
How long does a power of sale take in Ontario?
A lender can't give a notice of sale until a default has continued for at least 15 days, and it can't sell until at least 35 days after the notice. So a sale can't happen sooner than about 50 days after the default, and most take longer once possession, listing and closing are added.
Can I stop a power of sale in Ontario?
Usually, if you act before the sale. Section 22 of Ontario's Mortgages Act lets the owner put the mortgage back in good standing at any time before the sale by paying the amounts in default and the lender's necessary expenses. Owners also refinance or sell the home themselves. Speak with a lawyer as early as possible.
Who receives a notice of sale?
Not just the borrower. Section 31 of the Mortgages Act requires notice to everyone shown on the title records as having an interest in the property, such as later mortgage lenders and creditors with registered claims. Notice is given in person or by registered mail.
What happens if my home sells for more than I owe?
The extra money doesn't stay with the lender. After the sale costs, the mortgage, later mortgages and other registered creditors are paid, the rest goes to the owner, under section 27 of the Mortgages Act. If the sale doesn't cover the debt, the lender can claim the shortfall.
Official sources
- Mortgages Act (Part III, Power of Sale), Ontario e-Laws
What happens next
- Request a quote. Tell us the address and why you need the appraisal.
- Get your fee in writing. Within one business day. Nothing is booked until you accept it.
- Home visit and report. We book a time that works for both of us, Monday to Saturday. Most reports are ready 1–2 business days after the visit.
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This article is general information, not legal or financial advice. The rules and timelines depend on your mortgage and the facts, so please speak with a lawyer about your situation.