How Long Does the Power of Sale Process Take in Ontario?
Typical Power of Sale Timeline in Ontario
The timeline for a power of sale depends on the lender, the borrower’s actions, and market conditions. However, the process usually follows several stages.
Stage 1: Mortgage Default
The process begins when the borrower misses mortgage payments or breaches the mortgage terms.
Most lenders will send reminder notices before starting enforcement.
Stage 2: Notice of Sale
If the default continues, the lender issues a Notice of Sale under Mortgage.
The borrower usually has:
- 35 days (residential property)
- 40 days (commercial property)
to remedy the default.
Stage 3: Property Listed for Sale
If the borrower does not remedy the default, the lender may list the property for sale through:
- a real estate agent
- MLS listing
- private sale
Stage 4: Agreement of Purchase and Sale
Once the lender signs an agreement to sell the property, the borrower’s ability to redeem the mortgage becomes significantly limited.
Stage 5: Closing of Sale
The sale closes and the proceeds are applied to:
- mortgage debt
- legal costs
- enforcement expenses
If any funds remain after these payments, the surplus must be returned to the borrower.
Total Timeline
In many cases, the entire process takes 3 to 6 months, although it can be faster or slower depending on the circumstances.
Act Quickly If You Receive a Notice of Sale
If you receive a Notice of Sale or other mortgage enforcement notice, acting quickly can make a significant difference.
Early legal advice can help you:
- negotiate with the lender
- explore refinancing
- challenge enforcement steps
- protect your property