Power of Sale · Possession · Lender & Borrower Representation
When a mortgage goes into default, lenders need to recover what is owed and borrowers need to understand what options remain. We act for both.
A mortgage is a security interest — it gives the lender the legal right to take action against the mortgaged property if the borrower fails to meet their obligations. Default most often follows missed payments, but can also arise from unpaid property taxes, lapsed insurance, or other breaches of the mortgage.
Ontario’s Mortgages Act sets out the rights and remedies available on either side. Several distinct remedies may apply, depending on the circumstances.
Power of Sale
Power of sale is the most commonly used enforcement remedy in Ontario. It allows a lender to sell the mortgaged property without a court order, subject to the notice requirements set out in the Mortgages Act. Sale proceeds are applied to the outstanding mortgage balance, accrued interest, and costs, and any surplus is returned to the borrower.
For institutional lenders, private lenders, Mortgage Investment Corporations, and individual lenders, we review the mortgage documentation and advise on enforcement, issue Notices of Sale under the Mortgages Act, conduct the power of sale process through to closing, and prepare and register the transfer by power of sale together with the supporting closing documentation.
For borrowers who have received a Notice of Sale, we review the mortgage and the notices, explain the redemption rights that apply, and negotiate with the lender or their counsel. Depending on the circumstances that may mean refinancing to stop a power of sale, or responding where the lender seeks possession.
Quick answers to what clients ask us most. Have a different question? We're glad to help.
Seek legal advice immediately. Ontario's Mortgages Act gives you a redemption period (at least 35 days from the Notice of Sale) during which you may cure the default, refinance, negotiate, or sell. The earlier you act, the more options remain available to you.
The statutory redemption period is at least 35 days from the Notice of Sale, and the default must have continued 15 days before the notice could be issued. Once the lender signs a sale with a buyer, your right to redeem can be lost — so act quickly.
Often, yes — by reinstating the mortgage (paying arrears and costs), refinancing, negotiating a forbearance arrangement with the lender, or selling the property yourself before the lender does. We will assess your options and act fast.
Yes. We represent institutional lenders, private lenders and Mortgage Investment Corporations through the full power of sale process, and we represent borrowers seeking to protect their rights and their property.
Contact us about a mortgage in default.