Power of Sale - Ontario

Facing Power of Sale in Ontario - What to Do Now

If your lender has started power of sale proceedings in Ontario, you may have more options than you think. But the window closes fast. Contact us as early as possible - we review your file, assess what's realistic, and tell you honestly whether private financing can help your situation. FSRA #13449.

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FSRA Brokerage #13449Â·Hardeep Batoo, Broker Licence #M13002408Â·Ontario-wideÂ·Time-sensitive files: call directly

The basics

How power of sale works in Ontario

Power of sale is different from foreclosure. In a power of sale, the lender sells the property and must account for surplus proceeds - any amount above the outstanding mortgage, arrears, and costs goes to the borrower. Ontario primarily uses power of sale.

After the Notice of Sale Under Mortgage is served, you typically have 35 days to remedy the default. These timelines are based on Ontario's Mortgages Act and depend on your specific mortgage, the nature of the default, and whether you contest the proceedings. Consult an Ontario real estate lawyer immediately for advice specific to your situation.

Act early. The options narrow as the process advances. Once the property is listed or the sale is imminent, financing becomes very difficult or impossible. The earlier you contact us, the more we can do.

Who it's for

Situations where private financing may help

Not every power of sale situation can be resolved with financing. But many can - if there is equity, a clear title, and enough time. Here's where it tends to work.

You have significant equity in the property above the outstanding mortgage and arrears

The Notice of Sale was recently served and you are still in the 35-day remedy window

Your title is clean - no other liens, CRA claims, or encumbrances that would block financing

You can document the property and produce the documents needed for a lender review quickly

You have a plan for how to exit the private mortgage - sale, refinance, or asset liquidation

The total amount to pay out the lender is within a private lender's LTV comfort zone

You've already spoken with a real estate lawyer about the legal side

You need bridge financing to buy time while a property sale closes

If equity is insufficient to pay out the existing mortgage in full, private financing typically cannot stop the process. We assess this immediately when you contact us.

Rates & costs

What private mortgage financing to stop power of sale costs

Private mortgage financing in this context is emergency financing - the rate and fees reflect the urgency and risk. The economics need to be compared to losing the property.

Power of sale situations are time-sensitive and fact-specific. Costs, feasibility, and timelines depend on your specific file. We give you an honest assessment before you spend anything. O.A.C. E.&O.E.

What it costs

Private mortgage rateHigher than conventional - reflects urgency and lender risk position
Lender feeTypically 1â€“3% of the loan - charged by the private lender
Broker feeWhere applicable - disclosed in writing before any commitment
Legal feesBoth your lawyer and the lender's lawyer - expedited legal work adds cost
Payout amountFull outstanding balance including arrears, penalty, and the lender's legal costs

How it works

What happens when you contact us about a power of sale

Immediate file review

We need: the Notice of Sale, your current mortgage statement showing the payout amount, and a sense of the property value. We assess feasibility immediately.

Equity and title assessment

We determine whether the equity above the payout is sufficient for a private lender. We also identify any other title issues that could block financing.

Private lender match

If the file is viable, we match it to private lenders who handle power of sale situations and can move quickly.

Expedited legal coordination

Both your lawyer and the lender's lawyer need to move fast. We coordinate the timeline between financing and legal to hit the deadline.

Payout and resolution

If financing is approved and legal closes in time, the existing mortgage is paid out in full. The power of sale process stops. You then work toward an exit from the private mortgage.

Not every case can be saved

We'll tell you honestly whether it's possible for your file

Some power of sale situations can be resolved. Some cannot. The difference comes down to equity, timeline, and title. We assess every file we receive as fast as possible and give you a straight answer - without charging you to find out whether it's viable.

See how private mortgages work →

Why a broker

Private lenders who move fast - and an honest assessment up front

Not all private lenders handle power of sale situations. The ones that do require specific file presentation - equity math, title status, payout amount - to approve quickly. Our relationships with these lenders are the difference between a file that gets reviewed in 24 hours and one that sits in a queue.

We also tell you when it won't work. That honesty saves you the cost of pursuing financing that was never going to close in time.

Time is the only resource that can't be replaced in a power of sale. We move as fast as the situation requires.

Our lender network →

FAQ

Frequently Asked Questions - Power of Sale Ontario

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

After a Notice of Sale Under Mortgage is served, you typically have 35 days to remedy the default under Ontario's Mortgages Act. The actual timeline depends on your specific mortgage and circumstances. Consult an Ontario real estate lawyer for your specific situation.

Can a private mortgage stop a power of sale in Ontario?+

In some situations, yes. If a private mortgage can be arranged to pay out the entire outstanding balance - including arrears, legal costs, and other amounts owed - before the power of sale reaches the point of sale, the process may be stopped. Whether this is possible depends on available equity, title, timing, and documentation.

Will power of sale affect my credit score?+

Yes. Missed payments and default will appear on your credit report. The exact impact depends on your credit history, the lender, and how the credit bureau records the event.

Will private mortgage financing definitely stop my power of sale?+

No. We cannot guarantee that private financing will be available or that it will stop the process in every case. We review your file, assess the equity, timeline, and title - and give you an honest picture of whether it is a realistic option.

Call now - power of sale situations are time-sensitive

Call 647-542-6100 directly. Time is the critical variable in every power of sale file. We review your situation immediately and tell you what's realistic.

Apply Call (647) 542-6100

This is general information only. Power of sale timelines and legal rights depend on your specific mortgage, default, and circumstances. Speak with an Ontario real estate lawyer immediately about your situation. HB Mortgage Centre provides mortgage brokerage services only. O.A.C. E.&O.E.

FSRA Brokerage #13449 Â· Hardeep Batoo, Broker Licence #M13002408 Â· Ontario-wide

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