Before a lender can move to sell a property under power of sale, Ontario law requires a specific, legally mandated notice process — not something a lender can shortcut, and not something that happens the moment a payment is missed. Here's how the timeline actually works.
Missing a Payment Doesn't Trigger Power of Sale Immediately
A single missed mortgage payment doesn't put a property on the fast track to power of sale. Lenders generally follow their own internal collections process first — contact attempts, late payment notices — before the formal legal notice process even begins. How long this internal stage lasts varies by lender, but it's generally measured in months of continued default, not days.
The Notice of Sale
Once a lender decides to proceed, Ontario's Mortgages Act requires a formal Notice of Sale to be served on the homeowner (and any other parties with a registered interest in the property). This notice must specify the amount owing and give the homeowner a defined period to pay the debt in full and stop the process — commonly understood to be a minimum of 35 days from the date the notice is given, though the precise calculation depends on how the notice was served and specific circumstances.
What the Notice Period Actually Protects
This isn't a formality — it's the homeowner's legal opportunity to cure the default before losing the property. During this window, the homeowner can:
Pay the full amount owing, including arrears and reasonable costs, to reinstate the mortgage
Refinance with another lender to pay off the defaulting mortgage entirely
Sell the property themselves through a standard listing, potentially achieving a better outcome than a lender-driven sale
Negotiate directly with the lender for a modified payment arrangement, if the lender is willing
What Happens If the Notice Period Passes
If the debt isn't resolved within the notice period, the lender can proceed with listing and marketing the property for sale — but even at this stage, the redemption right doesn't disappear entirely. The homeowner generally retains the right to pay off the debt and reclaim the property right up until the sale actually closes, which is exactly why buyers need to understand this risk before committing funds.
What This Means for Buyers
A listed power of sale property has already been through this notice process — the lender wouldn't be marketing it otherwise. But that doesn't mean the redemption right has expired.
Confirm with your lawyer exactly where a specific property stands in the process before you get too attached to it — a homeowner reinstating their mortgage at the last minute is a real, if uncommon, outcome.
Understand this timeline explains why power of sale activity tends to lag mortgage stress by months, not days — the notice period alone adds a meaningful delay between a homeowner falling behind and a property actually hitting the market.
What This Means for Homeowners Facing This Situation
If you've received a Notice of Sale, the notice period is genuinely your most important window to act — reach out to your lender, a mortgage broker, or a lawyer immediately rather than waiting to see what happens. The options available to you narrow considerably once this period passes and the property moves toward active marketing.
The Bottom Line
Ontario's power of sale process includes real, legally mandated notice periods designed to give homeowners a genuine opportunity to resolve their default before losing the property — understanding this timeline helps both buyers evaluate the properties they're considering and homeowners understand exactly how much time and what options they actually have.
Facing a mortgage default and want to understand your options within the notice period, or evaluating a power of sale purchase and want to understand where it stands in the process? Contact our team — we can help either side navigate this with clear information.
This article summarizes general Mortgages Act principles and is not legal advice. Consult a lawyer for guidance specific to your situation.
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