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Selling in Ontario · Power of sale
When you fall behind on an Ontario mortgage, the lender can force a sale through power of sale. If that happens, the home is usually sold quickly and often below market value, and you receive only what is left after the arrears, penalties, and legal fees are paid. Selling the property yourself before the lender takes over keeps you in control of the price and the timeline, and it usually leaves you with more of your equity.
No commissions or fees
Written offer in 24–48 hours
Close in 7 days to 6 months
Ontario at a glance
5.2 months
Of inventory in Ontario, against a 3.1-month long-term average for the season
CREA / Ontario Real Estate Association, August 202601
The sooner you act, the more options you have. Ideally you sell before a Notice of Sale is issued, but a sale can still work after one is served if there is time to close.
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We review the property and put a firm number in writing, usually within 24 to 48 hours. We know these situations are time-sensitive.
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Your lawyer discharges the mortgage from the sale proceeds. We coordinate on the payout figure and the closing date so the deal completes before the lender’s deadline.
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After the mortgage, arrears, and costs are paid, whatever is left is yours. A private sale you control almost always leaves more than a lender-run sale.
A lender starts power of sale by serving a Notice of Sale under the Mortgages Act, usually after you are about 15 days in default. Once it is served, you have a redemption period, commonly 35 days, to pay everything owed: the arrears, the lender’s legal costs, and in some cases the full balance. If you cannot redeem, the lender can sell the property. They must try to get fair market value and account to you for any surplus, but in practice these sales are quick and the surplus is smaller than an owner-run sale would produce. Selling before the redemption period ends, or before the notice is even served, gives you a much better result.
This page is general information, not legal advice. If you have received a Notice of Sale or any legal document from your lender, speak to a lawyer right away. Timelines are short and missing a deadline has serious consequences.
Listing instead? On the average Ontario home, a realtor costs about $35,655.
Commission at 4% plus 13% HST. See the number for your home’s price.
Get a written offer with no obligation, or call and ask us about your situation.
