Power of Sale · Foreclosure · Lender & Borrower Representation
When a mortgage goes into default, the stakes are high for everyone involved. With deep roots in Ontario real estate law and a thorough command of the Mortgages Act, we represent both lenders and borrowers at every stage.
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 commonly arises from missed payments, but can also follow unpaid property taxes, lapsed insurance, or other breaches.
In Ontario, the Mortgages Act governs the rights and remedies available to lenders and borrowers when a mortgage is in default. Several distinct remedies may apply, depending on the circumstances.
Power of Sale
By far the most common remedy in Ontario. A lender may sell the property without a court order — subject to mandatory notice and statutory timelines — applying proceeds to the debt, interest, penalties and costs. Surplus is returned to the borrower; any shortfall may be pursued on the covenant.
Judicial Sale (Foreclosure)
Less common in Ontario. The lender applies to court for an order extinguishing the borrower's right to redeem; on a successful order, the lender becomes the registered owner. Because it requires court proceedings, it is typically slower and more expensive.
Possession of the Property
A lender may take possession — with the borrower's consent or through a court order — often when the property requires preservation or management pending a sale.
Judgment on the Covenant
Independently of, or in addition to, selling the property, a lender may sue the borrower on their personal promise to repay and obtain a monetary judgment for the outstanding balance.
For institutional lenders, private lenders, Mortgage Investment Corporations (MICs) and individual lenders whose mortgage has gone into default, we provide:
If you have received a Notice of Sale or face an imminent power of sale, you still have rights — and time may be on your side. We can help you:
Timelines may vary depending on the terms of the specific mortgage and the nature of the default. This is a general illustration — seek legal advice promptly.
Default occurs
The borrower misses a payment or otherwise defaults on the mortgage (e.g. unpaid property taxes or lapsed insurance).
Notice of Sale may issue
After 15 days of default, the lender may issue a Notice of Sale under the Mortgages Act.
Statutory redemption period
The borrower has at least 35 days from the Notice of Sale to cure the default, refinance, or negotiate with the lender.
Property listed & sold
Once the redemption period expires, the lender may proceed to list and sell the property.
Proceeds applied
Sale proceeds are applied to mortgage debt, costs and interest; any surplus is returned to the borrower.
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.
Facing a mortgage default or enforcement action? Get expert legal advice today.