Stop a Power of Sale and Keep Your Home

A power of sale is the process an Ontario lender uses to sell a property after a borrower defaults on the mortgage, without going to court. The lender must wait until the default has continued for at least 15 days before issuing a Notice of Sale, and that notice gives the homeowner a redemption period of at least 35 days to bring the mortgage current. Paying the arrears and costs within that window stops the sale and the homeowner keeps the property.

Who This Page Is For

This page is written for Ontario homeowners who own a property with equity in it and are facing enforcement action from their mortgage lender. If that is you, there is very likely a solution, and the equity you have built is what makes it possible.

If you do not own the property, or there is little or no equity left in it after the mortgage and any registered debts, we will tell you that plainly rather than take you through an application that cannot work. In that situation a licensed insolvency trustee or a lawyer is a better first call than a mortgage broker, and we will say so.

The Clock That Matters

Power of sale moves on a defined schedule. Knowing where you sit on it tells you how much room you have.

Timelines are set out in the Ontario Mortgages Act. Your own notice governs your file, so read it carefully and check the dates on it.

How a Power of Sale Works, and Where You Can Stop It

The process follows a set sequence. Understanding which stage you are at tells you how much time you have and which options are still open. For a full stage-by-stage walkthrough, an example of what a Notice of Sale looks like, and the options for buying time, see our guide on how power of sale works in Ontario.

Know Your Rights in a Power of Sale

A power of sale does not strip you of your rights. Ontario's Mortgages Act sets out specific protections for the homeowner, and knowing them is the difference between reacting in a panic and acting from a position of strength. These are the rights that matter most.

This is general information about how the Mortgages Act works, not legal advice. Every file has its own facts, and if you want your specific notice or situation reviewed, you should speak with a lawyer. What we do is arrange the financing that lets you exercise the most important of these rights — reinstating the mortgage before the home is sold.

Power of Sale or Foreclosure? Most Ontarians Mean Power of Sale

Almost everyone facing this calls it foreclosure, and we know exactly what people mean when they say it. But in Ontario the two are different legal processes, and the difference matters a great deal to your timeline. If you have a notice in front of you, check which one it is before you plan around it. For a full side-by-side, read our guide to power of sale vs foreclosure in Ontario, or see our stop foreclosure page for the judicial process and the provinces where it is common.

Your Options to Stop a Power of Sale

A power of sale can be stopped at almost any point before the property is actually sold. Which route fits depends on whether you want to keep the home, and on whether the real problem is the arrears themselves or a temporary loss of income underneath them. These are the solutions we most often arrange for Ontario homeowners, all based on the equity in your home rather than your credit score.

How We Stop a Power of Sale

The mechanism is straightforward. We arrange financing secured against the equity in your home, the funds pay out the arrears and the lender's costs, the mortgage is reinstated, and the sale stops.

How the Numbers Usually Work

What matters is whether there is enough equity to cover the arrears, the lender's costs, and the new financing, while staying within our 80 percent cap. Here is a typical file.

In this file the arrears and costs together come to $27,000, comfortably inside the available room. A second mortgage clears both, the first mortgage is reinstated, and the sale stops. Use our home equity calculator to work out your own position in a couple of minutes. This is an illustration, not a quote.

What We Look At When You Need to Stop a Power of Sale

Approval through our lender network turns on the property and the equity in it. A power of sale in progress is not a barrier, and neither is the credit damage that usually comes with it.

Our Commitment to Responsible Lending

We are a licensed mortgage brokerage, and people find us at the worst moment of their financial lives. That places an obligation on us to give honest guidance rather than simply write a deal.

We do not arrange financing above 80 percent of a property's appraised value. On a power of sale file that limit occasionally means telling a homeowner the numbers do not work, which is not what anyone wants to hear. But lending someone to the edge of their equity when they are already in difficulty does not save the home, it only delays the same outcome and costs more on the way.

The full cost of any solution, including the interest rate, lender fee, broker fee, legal fees, and appraisal, is set out in writing in a formal Cost of Credit Disclosure before you commit to anything. If someone offers to go beyond 80 percent on a file like this, ask them what happens if the property does not sell for what they are assuming.

How Ontario Homeowners Stopped a Power of Sale

Every file is different. These are three examples of how Ontario homeowners stopped a power of sale using the equity they had already built.

Where We Serve

Power of sale is the standard enforcement route in Ontario, and Ontario is where the bulk of our power of sale work is done. The cities below are areas we serve regularly rather than a complete list. We also arrange financing for homeowners elsewhere in Canada, with the exception of Quebec, Newfoundland, Yukon, the Northwest Territories, and Nunavut.

Toronto · Oshawa · Whitby · Ajax · Pickering · Clarington · Bowmanville · Mississauga · Brampton · Hamilton · Ottawa · London · Kingston · Barrie · Peterborough · Sudbury · Thunder Bay · Windsor · Kitchener · Niagara Falls · Vaughan · Markham · Richmond Hill · Newmarket · Oakville · Burlington

Frequently Asked Questions About Stopping a Power of Sale

What is a power of sale in Ontario?

A power of sale is the process a lender uses to sell a property after a borrower defaults, without going to court. It is the standard enforcement route in Ontario. The lender must wait until the default has continued at least 15 days before issuing a Notice of Sale, and that notice gives at least 35 days to bring the mortgage current.

What are my rights during a power of sale?

You have the right to reinstate or pay out the mortgage at any time before the property is sold, the right to a properly served Notice of Sale with at least a 35-day redemption period, and the right to any surplus after the debts and costs are paid. Where the home is a matrimonial home, your spouse has their own right to notice. This is general information, not legal advice, so have a lawyer review your specific situation.

How long do I have to stop a power of sale?

The Notice of Sale must give you a redemption period of at least 35 days. Your own notice governs your file, so check the dates on it. In practice you can still stop the process after that period as long as the property has not actually been sold, but costs mount and options narrow the longer it runs.

Can I stop a power of sale after receiving a Notice of Sale?

Yes. Paying the arrears together with the lender's legal and enforcement costs reinstates the mortgage and stops the sale. Most of the files we fund are at exactly this stage. The obstacle is rarely whether it can be stopped, it is arranging the money quickly enough.

Can I get financing with no monthly payments to buy time?

In many cases, yes. For homeowners facing a temporary loss of income, we can often arrange a prepaid home equity loan, where the interest for the term is paid up front so there are no monthly payments while you recover. It stops the power of sale and gives you a runway, usually about a year, to get back on your feet, refinance, or sell on your own terms. It is a short-term bridge that depends on your equity and lender approval.

Is a power of sale the same as foreclosure?

No, although almost everyone uses the word foreclosure for both. Foreclosure is a court process in which the lender takes title to the property and keeps any surplus. Power of sale does not involve the court, and any money left after the debts and costs are paid is returned to you. Ontario lenders overwhelmingly use power of sale.

Do I need good credit to stop a power of sale?

No. The lenders we work with assess primarily on the equity in your property. Missed payments, collections, a consumer proposal, or a past bankruptcy do not automatically disqualify you, and a power of sale in progress does not either.

How much equity do I need to stop a power of sale?

Enough to cover your existing mortgage, the arrears, the lender's costs, and the new financing while staying within 80 percent of the property's appraised value. Our home equity calculator gives you an estimate quickly.

How quickly can financing be arranged?

Approvals typically come back within 24 to 48 hours. Full funding, including appraisal and legal work, usually takes 5 to 10 business days. Where a redemption deadline is close, files can move faster, which is why it is worth calling as soon as the notice arrives rather than near the end of the period.

What happens to my equity if the property is sold?

The proceeds pay the first mortgage, then selling and legal costs, then any other registered charges in priority order. Whatever remains is returned to you. The practical problem is that enforcement costs and a sale run for speed rather than price routinely consume a large share of the equity a homeowner had built.

Can a second mortgage lender start a power of sale?

Yes. A lender in second position can enforce even when the first mortgage is completely current. It surprises a lot of homeowners. The solution is usually to pay out or refinance the enforcing charge before the redemption period closes.

Will a power of sale affect my credit?

The missed payments that led to it will already be reported and will affect your credit for several years. Stopping the sale prevents further damage and lets you begin rebuilding. Clearing the arrears and maintaining the new payment is what starts that recovery.