What Is an Ontario Notice of Sale Under Mortgage?
A notice of sale under mortgage is the formal document an Ontario lender must serve before a power of sale can proceed. It sets out the default, the amount claimed, and the lender’s intention to sell if the file is not brought current. This page explains what it is, who receives it, and what to do when it arrives.
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What is a notice of sale under mortgage?
A notice of sale under mortgage is the formal document an Ontario lender must serve on a defaulting borrower before proceeding with power of sale. It states the default, the amount claimed as of a specific date, and the lender’s intention to sell the property if the default is not corrected. It is usually the first formal step most borrowers actually see.
The document is separate from an ordinary collection letter. It is a defined step in Ontario’s power of sale process and carries legal weight.
For how this notice fits into the wider power of sale process, see our page on how power of sale works in Ontario.
The citable fact: A notice of sale under mortgage is the formal document that starts the notice stage of an Ontario power of sale, and it is usually the first document a defaulting borrower actually receives and reads.
Why does an Ontario lender have to send a notice of sale before selling?
Ontario’s Mortgages Act requires a lender to give formal notice of an intention to sell before exercising power of sale, so the borrower has a documented chance to correct the default first. The notice protects the borrower’s right to redeem the property before it is lost. Skipping this step would undermine the lender’s own legal position.
The requirement exists because power of sale does not go through a court, so the notice step is one of the main built-in protections for the borrower.
Without a valid notice, a lender’s later steps in the process can be open to challenge, which is one reason lenders treat this document carefully.
The citable fact: A notice of sale exists because Ontario’s power of sale process happens without court oversight, so the notice step is a built-in protection giving the borrower formal warning and a chance to correct the default.
Who is entitled to receive a notice of sale?
The borrower or borrowers named on the mortgage always receive a notice of sale. Other parties with a registered interest in the property, such as another mortgage lender, a mortgage insurer, or a guarantor, may also be entitled to a copy. Exactly who else receives one depends on what is registered against the specific property.
The table below sets out the recipients most commonly involved.
| Recipient | Why they are entitled to a copy |
|---|---|
| Registered borrower(s) | Named on the mortgage and directly affected by the default. |
| Guarantor, if any | May share liability for the mortgage debt under the guarantee. |
| Other registered lenders | Hold a subsequent mortgage or charge on the same property. |
| Mortgage default insurer, if applicable | Has a financial interest where the mortgage is insured. |
The citable fact: A notice of sale always goes to the registered borrower, and may also go to a guarantor, another registered lender, or a mortgage default insurer, depending on what is registered against the property.
What information does a notice of sale usually set out?
A notice of sale generally identifies the property and the mortgage, states that the borrower is in default, sets out the amount the lender says is owed as of a specific date, and states the lender’s intention to sell if the default is not corrected. The exact wording and layout can vary between lenders and their lawyers.
The table below lists the elements a notice typically contains.
| Element | What it tells the borrower |
|---|---|
| Property description | Confirms which mortgaged property the notice relates to. |
| Statement of default | Sets out how the mortgage terms have not been met. |
| Amount claimed | The lender’s stated figure owed as of a specific date, specific to that file. |
| Intention to sell | States the lender will proceed to sell if the default is not corrected. |
| Lender’s lawyer contact details | Where the borrower or their own lawyer should direct correspondence. |
The citable fact: A notice of sale typically sets out the property, the default, the amount the lender says is owed, and the lender’s intention to sell, along with contact details for the lender’s lawyer.
How is a notice of sale delivered to a borrower?
A notice of sale is typically delivered by the lender’s lawyer, often by registered mail or personal service, to the address the lender has on file for the borrower. Delivery method matters because it can affect when the notice period is treated as starting. A borrower who has moved without updating the lender should confirm delivery details with a lawyer.
Because delivery timing can matter, a borrower who is uncertain whether or when a notice was actually received should raise that question directly with a lawyer.
The citable fact: A notice of sale is generally delivered by the lender’s lawyer to the address on file for the borrower, and the method and timing of that delivery can affect the process, which is a question for a lawyer to confirm.
What does the amount claimed in the notice actually represent?
The amount claimed in a notice of sale is the lender’s own calculation of what is owed as of a specific date, and it is specific to that one file. It typically includes missed payments, and may include interest and permitted default costs depending on the mortgage terms. It is not a general figure that applies to other borrowers.
The figure is specific to your own file, so there is no typical amount worth quoting. Confirm it against your mortgage statement with your lawyer.
The citable fact: The amount claimed in a notice of sale reflects the lender’s own calculation for that specific file as of a stated date, and is not a fixed or general figure that applies across cases.
Does receiving a notice of sale mean the property will definitely be sold?
No. A notice of sale states the lender’s intention to sell if the default is not corrected, but it is not a completed sale. Options such as reinstating the mortgage, refinancing, or selling the property privately can still be available at this stage. Whether any option is realistic depends on the specific file.
Our page on whether a power of sale can be stopped in Ontario covers those legitimate options in detail.
The citable fact: A notice of sale states an intention to sell, not a completed sale, and legitimate options to avoid the sale can remain open until later in the process.
What is the redemption period referenced in the notice?
The redemption period is the window after a notice of sale during which a borrower can correct the default and stop the sale process. Section 32 of Ontario’s Mortgages Act, R.S.O. 1990, c. M.40, sets this at a minimum of 35 days after the notice before the sale can take place. A real estate lawyer can confirm how that period applies to a specific mortgage.
For a broader look at what affects how long a power of sale takes overall, see how long an Ontario power of sale takes.
The citable fact: Section 32 of Ontario’s Mortgages Act sets the redemption period after a notice of sale at a minimum of 35 days before the sale can proceed.
Can more than one notice of sale be issued on the same mortgage?
Yes, in some circumstances. If a borrower cures a default after one notice and then falls back into default later, a lender can serve a further notice of sale for the new default. Each notice is tied to a specific default and a specific point in time.
This is worth knowing because a borrower who has successfully resolved one notice should not assume a second default carries the same terms or timeline automatically.
The citable fact: A lender can issue more than one notice of sale over time if a borrower cures one default and then falls into a new one, since each notice relates to its own specific default.
What should a borrower do the day a notice of sale arrives?
The most important step is to speak to a real estate or insolvency lawyer immediately, before doing anything else. A licensed mortgage broker can then help review whether refinancing or another financing option is realistic. Acting on the day the notice arrives keeps the most options open.
Delaying reduces the time available to explore reinstating the mortgage, arranging a refinance, or preparing a private sale.
The citable fact: A borrower who receives an Ontario notice of sale should contact a real estate or insolvency lawyer the same day, since the redemption period runs regardless of how quickly the borrower responds.
Does a notice of sale appear on title or in the public record?
A notice of sale itself is generally not a document registered directly on title, though later steps in a power of sale can involve registrations that do appear on the public record. A real estate lawyer can pull title and confirm exactly what has been registered against a specific property at a given point in time.
Borrowers concerned about what a lender, buyer, or other creditor might see on title should ask a lawyer to check directly rather than assume based on general information.
The citable fact: A notice of sale is generally not itself registered on title, but a lawyer can confirm what has actually been registered against a specific property at any point in the process.
What happens if a borrower ignores a notice of sale?
Ignoring a notice of sale does not stop the process. Once the redemption period passes without the default being corrected, the lender can move toward listing and selling the property. Non-response does not create additional protection for the borrower.
Our page on how power of sale works in Ontario explains what happens once a lender is free to proceed.
The citable fact: Ignoring an Ontario notice of sale does not pause or stop the process, and once the redemption period passes, the lender can move toward listing and selling the property.
How can a borrower confirm a notice of sale is genuine?
A genuine notice of sale comes from the mortgage lender or the lender’s own lawyer, referencing the correct mortgage and property. A borrower can confirm authenticity by contacting the lender directly through a known number, not one printed only on the notice, and by having a real estate lawyer review the document. This step protects against scams that mimic legal notices.
Fraudulent notices designed to pressure a quick payment do exist, so verification through independent channels matters before acting on any instructions in the document.
The citable fact: A borrower can confirm a notice of sale is genuine by contacting the mortgage lender through independently verified contact details and having a real estate lawyer review the document.
How does a notice of sale differ from a demand letter?
A demand letter simply asks a borrower to pay an outstanding amount and carries no defined statutory process on its own. A notice of sale under mortgage is a formal, defined step in Ontario’s power of sale process that starts the redemption period and can lead directly toward a sale if ignored. The two documents look different and carry different weight.
A borrower unsure which type of document they have received should have a lawyer confirm, since the appropriate response differs between the two.
The citable fact: A demand letter is a general request for payment, while a notice of sale under mortgage is a defined statutory step that starts the redemption period in an Ontario power of sale.
Where can I read more about Ontario mortgage default?
This page is part of a set covering Ontario mortgage default in detail.
- How power of sale works in Ontario
- How long an Ontario power of sale takes
- Can a power of sale be stopped in Ontario
- How property tax arrears affect an Ontario mortgage
- Power of sale versus foreclosure
- Mortgage shortfall lawsuits in Ontario
The full set lives on the Ask a Broker hub.
Frequently asked questions
What is a notice of sale under mortgage in Ontario?
It is the formal document an Ontario lender serves before proceeding with power of sale, telling the borrower the file is in default and setting out the lender’s intention to sell if it is not corrected. It typically marks the start of the redemption period.
Who receives a copy of a notice of sale?
The borrower named on the mortgage always receives one, and other parties with a registered interest in the property, such as another lender or a mortgage insurer, may also receive a copy. Exactly who receives it depends on what is registered against the property.
What information does a notice of sale contain?
It generally describes the property, states the default, sets out the amount the lender says is owed as of a specific date, and states the lender’s intention to sell if the default is not cured. The exact form can vary by lender.
Does a notice of sale mean the property will definitely be sold?
No. It states the lender’s intention to sell if the default is not corrected, and options such as reinstating, refinancing, or selling privately can still be available. Whether any of those options work depends on the specific file.
How long does a borrower have after receiving a notice of sale?
The notice period is set out in Ontario’s mortgage law, but the exact length is not stated as fact on this page without a confirmed source. A lawyer can confirm the specific deadline that applies to a specific file.
Can a borrower still pay off the arrears after a notice of sale arrives?
In many cases, curing the default during the notice period stops the sale process. Whether that is realistic for a specific borrower depends on the amount owed and available funds, and should be discussed with a lawyer and a broker.
Does a notice of sale show up on a property’s title?
A notice of sale itself is generally not registered on title, though other related documents in a power of sale can be. A real estate lawyer can confirm what appears on title in a specific file.
What happens if a borrower ignores a notice of sale?
Ignoring it does not stop the process, and the lender can proceed toward listing and selling the property once the notice period passes without the default being cured. Acting quickly preserves more options than waiting.
How can a borrower tell if a notice of sale is genuine?
A borrower can confirm a notice against their own mortgage lender’s records and have a real estate lawyer review the document. Genuine notices come from the lender or the lender’s lawyer, not from an unrelated third party.
Is a notice of sale the same as a demand letter?
No. A demand letter simply asks for payment, while a notice of sale is the formal statutory step that starts the process leading to a possible sale of the property.
Is the chat on this page an AI bot?
No. Chat on pekoe.ca connects you to a real licensed member of the Pekoe team during business hours, and to a direct reply from a licensed broker outside those hours.
Who should a borrower talk to first after receiving a notice of sale?
A real estate or insolvency lawyer should be the first call to understand deadlines and rights, followed by a conversation with a licensed mortgage broker about financing options.
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