Apr 1, 2025
Power of Sale in Ontario: What Mortgagees Need to Know When It’s Time to Enforce
Posted by: Domenic C.S. Presta, John V. Sestito, Daniel Musso and Matthew D. Presta
When a mortgage file goes silent and the arrears start to mount, it’s not a mystery. It’s math.
The borrower missed a payment.
The covenant was breached.
And any remaining equity is already starting to fade.
In today’s market, with trade disruptions and interest rate volatility swirling, capital-backed lenders can’t afford to delay. You need leverage. You need control.
In Ontario, Power of Sale is a statutory self-help remedy under the Mortgages Act (Ontario)—designed to avoid or, at minimum, reduce the need for court involvement. But if a claim is commenced and the borrower files a defence or takes active steps to contest the process, delays can still arise.
What Does Power of Sale Mean in Ontario?
Power of Sale allows a mortgagee or charge holder to initiate the sale of the mortgaged property after default—without needing a court order to list or sell the property itself, provided proper notice has been served.
However, if the property is still occupied, the lender will generally require a writ of possession to remove the occupants and take control. That step involves the court—and once granted, enforcement typically follows with the assistance of the sheriff.
The key advantage?
It’s a streamlined, lender-driven process that doesn’t start in court—and gives the borrower far fewer procedural tools to delay or derail recovery, compared to a full foreclosure action. It’s a recovery mechanism—commercial, procedural, and fast.
It returns control to the lender. And in enforcement, control is the currency.
How to Stop a Power of Sale in Ontario?
Borrowers may attempt to halt the process, but unless the mortgagee agrees, the only true path is redemption—paying all outstanding arrears, interest, legal costs, and any applicable fees.
From the lender’s side, this isn’t about negotiation. It’s about protecting your position and proceeding within your rights under the mortgage instrument.
What Is the Redemption Period for Power of Sale in Ontario?
After serving a formal Notice of Sale, the borrower typically has 35 days to cure the default before the lender can proceed with a sale. That’s the “standard” redemption period.
But here’s the nuance:
If the property is a matrimonial home, or if spousal consent or rights under the Family Law Act (Ontario) are in play, additional notice requirements may apply—and the clock may run longer.
This doesn’t block the process, but it does mean mortgagees must approach enforcement with precision.
The bottom line?
If you're enforcing against jointly held or occupied property, timing isn’t just about days—it’s about compliance.
It’s the final opportunity for the mortgagor to retain ownership before the lender lists the property for sale.
For mortgagees, this window is critical. It’s where discipline matters most.
What Is the Redemption Period Fee?
Redemption means more than catching up on missed payments.
Mortgagees are entitled to recover:
- Arrears of principal and interest
- Enforcement and legal costs
- Administrative and contractual charges
The so-called “fee” is really the cost of default—and lenders should be prepared to quantify and justify it.
What Is the Minimum Redemption Requirement?
The borrower must pay all amounts necessary to bring the mortgage current. That includes:
- All arrears
- Accrued interest
- Costs and charges
- Any other recoverable sums under the mortgage terms
Mortgagees should never accept partial payments or vague promises during this phase. Either the default is cured—or it isn’t.
What Are the Risks of Buying a Power of Sale Property?
While buyers may face risks tied to title, disclosure, or possession, mortgagees face a different question: How do we preserve sale integrity and recover efficiently?
That means:
- Ensuring notice was served correctly
- Preserving lien priority
- Coordinating with reputable real estate professionals
- Closing without exposure to post-sale claims
Handled well, a Power of Sale transaction delivers closure and commercial recovery.
The BP Framework: Your Command Tower in Turbulence
At Bianchi Presta LLP, we don’t just “do” enforcement. We manage it like an air traffic controller oversees a landing—strategically, calmly, and with complete visibility.
We work exclusively with:
- Private mortgage lenders
- Institutional charge holders
- Syndicated lending groups
- High-value secured parties with non-performing debt
From first notice to final sale, we keep the operation sharp, compliant, and forward-moving.
If you're a mortgagee holding a non-performing file, don’t wait for it to deteriorate.
The Power of Sale process exists to help you act decisively and recover what’s rightfully yours—before it’s gone.
Let us take the controls. You focus on the next deal.
Note: Every enforcement matter is different. For guidance specific to your situation, contact our office directly to schedule a confidential consultation.
Disclaimer:
This article is provided for informational purposes only and does not constitute legal advice. The information presented is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act or rely on the content without seeking professional legal advice specific to their circumstances. Bianchi Presta LLP does not guarantee the accuracy, completeness, or currency of the information, and we disclaim any and all liability in respect to actions taken or not taken based on any or all of the contents of this site. For personalized advice, please consult a qualified lawyer.