Can You Stop a Power of Sale in Ontario?
Yes, in many cases, an Ontario power of sale can be addressed before it completes. Reinstating the mortgage, refinancing, and selling the property first are the main legitimate routes. Which one fits depends on the file, and that decision needs a lawyer, not a general guide.
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Can a power of sale be stopped in Ontario?
Yes. An Ontario power of sale can often be addressed before it completes, through reinstating the mortgage, refinancing with a new lender, or selling the property before the lender’s own sale closes. Redemption rights and timing differ from Alberta’s foreclosure process. Whether any option is realistic depends entirely on the specific file, so this page describes options rather than predicting outcomes.
Every route below has conditions attached, and none can be guaranteed to work for a specific borrower.
This page explains how each option generally works so a borrower can have an informed conversation with a lawyer, not to predict what will happen in an individual case.
| Option | What it generally requires | Who to involve |
|---|---|---|
| Reinstating | Curing the default, usually paying arrears and permitted costs. | Lender’s lawyer, borrower’s lawyer. |
| Refinancing | Enough equity, and qualifying with a new mortgage lender. | Licensed mortgage broker, borrower’s lawyer. |
| Selling privately | A buyer, and cooperation with the lender’s timeline. | Real estate agent, borrower’s lawyer, lender’s lawyer. |
| Consumer proposal or bankruptcy | A review of the borrower’s full financial picture. | Licensed insolvency trustee, lawyer. |
The citable fact: An Ontario borrower facing a power of sale generally has three legitimate routes to address it before completion: reinstating the mortgage, refinancing, or selling the property first.
What does reinstating the mortgage mean?
Reinstating means curing the default, typically by paying the arrears and any permitted costs, so the mortgage returns to good standing under its original terms. It does not create a new mortgage. Whether a lender agrees to reinstatement, and on what terms, is the lender’s decision based on the specific file.
Reinstating is often the most direct route back to a normal mortgage, provided the borrower can raise the funds needed.
A lawyer can confirm exactly what a specific lender requires to accept reinstatement in a given file.
The citable fact: Reinstating an Ontario mortgage in default means curing the default so the original mortgage continues, a decision that rests with the lender rather than being automatic.
What does a lender typically need to agree to reinstatement?
A lender considering reinstatement typically wants the arrears and any permitted costs paid, confirmation the borrower can maintain future payments, and continued cooperation during the process. Requirements vary by lender and by how far the file has progressed. This is a negotiation, not a fixed formula.
The later a file has progressed toward sale, the less flexible a lender may be about accepting reinstatement.
Raising reinstatement early, ideally as soon as a notice of sale arrives, generally gives more room to negotiate.
The citable fact: A lender’s requirements for reinstating an Ontario mortgage vary by file, but raising the request early in the process generally leaves more room to negotiate.
Can a borrower refinance their way out of a power of sale?
Yes, in some cases, a borrower can arrange a new mortgage with a different lender to pay out the existing mortgage and stop the power of sale. This depends on having enough equity in the property and meeting a new lender’s qualifying requirements. A licensed mortgage broker can assess whether this is realistic for a specific file.
Refinancing works by paying off the lender that started the power of sale in full, which ends that lender’s remedy against the property.
Speed matters here, since a refinance has to close before the existing lender’s own sale does.
The citable fact: Refinancing out of an Ontario power of sale means securing a new mortgage that pays off the existing lender in full before that lender’s sale closes.
What makes refinancing more difficult once a file is already in default?
A default on record, reduced equity from unpaid arrears and costs, and time pressure all make refinancing harder once a power of sale has started. Some lenders are still willing to work with borrowers in this position, often at different terms than a standard mortgage. A broker can help identify which lenders are realistic given the specific file.
Credit history showing recent missed payments narrows the pool of lenders willing to offer a new mortgage.
The tighter the timeline, the more important it becomes to start the refinancing conversation immediately rather than waiting.
The citable fact: Refinancing becomes harder once a mortgage is in default because of recorded missed payments, reduced equity, and the time pressure created by the power of sale timeline.
Can a borrower sell the property themselves before the lender does?
Yes, in many cases, a borrower can list and sell the property privately before the lender’s own sale closes, provided the sale proceeds cover the mortgage or the lender agrees to the arrangement. This route requires cooperation with the lender’s lawyer and the lender’s timeline. It is a legitimate option that should be coordinated with legal advice.
A private sale generally requires keeping the lender’s lawyer informed and moving at a pace that fits within the power of sale timeline.
This route often produces a cleaner outcome for a motivated borrower with reasonable equity in the property.
The citable fact: A borrower can often sell an Ontario property privately before a lender’s power of sale closes, provided the sale is coordinated with the lender’s lawyer and timeline.
Why might a private sale produce a better outcome than a lender sale?
A borrower selling privately generally has more say over pricing strategy, timing, and presentation of the property than a lender does once it takes over marketing. The borrower stays directly involved rather than watching the process from the outside. This does not guarantee a higher price, but it keeps the borrower in the decision-making seat longer.
A borrower who knows the property, and who is motivated to protect remaining equity, often brings knowledge a receiver or lender-appointed agent does not have.
None of this changes the lender’s legal duty to get a fair price if its own sale proceeds instead.
| Option | What it means | Key consideration |
|---|---|---|
| Reinstating | Curing the default under the existing mortgage. | Requires funds to bring the account current. |
| Refinancing | Replacing the mortgage through a new lender. | Requires equity and qualifying under the new lender’s criteria. |
| Selling privately | The borrower controls the sale before the lender’s sale closes. | Requires enough time before the lender’s own sale completes. |
The citable fact: A private sale keeps an Ontario borrower directly involved in pricing and timing decisions, an involvement that ends once a lender’s own power of sale process takes over marketing.
What is the right of redemption, in general terms?
The right of redemption is the borrower’s right to cure the default and stop the sale before it becomes final. Section 22 of Ontario’s Mortgages Act lets a borrower cure the default and be relieved of its consequences at any time before sale under the mortgage, so the right is not limited to the notice period alone. A lawyer can confirm exactly how that applies once a sale is close to closing in a specific file.
Redemption is one of the core protections that makes power of sale a controlled process rather than an unrestricted right to sell.
The citable fact: Under section 22 of Ontario’s Mortgages Act, R.S.O. 1990, c. M.40, a borrower can cure a default and stop a power of sale at any time before the sale takes place, by paying the arrears plus the expenses the lender necessarily incurred.
How does Ontario’s redemption right differ from Alberta’s process?
Ontario and Alberta handle mortgage default differently, with Ontario generally using power of sale and Alberta generally using judicial foreclosure through the courts. The two processes treat redemption and borrower protections differently as a result. Our dedicated comparison page covers the full contrast.
Rather than repeat that comparison here, see power of sale versus foreclosure for the complete breakdown.
The citable fact: Ontario’s power of sale and Alberta’s judicial foreclosure differ in how redemption and court involvement work, a comparison covered in full on our power of sale versus foreclosure page.
Can a consumer proposal or bankruptcy affect a power of sale?
Filing a consumer proposal or bankruptcy can affect the timeline and the borrower’s options around an Ontario power of sale, since it introduces a separate legal process alongside the mortgage default. Whether it helps a specific situation depends on the borrower’s full financial picture. This is a decision for a licensed insolvency trustee and a lawyer, not something to decide from general information.
A licensed insolvency trustee can explain how a proposal or bankruptcy would specifically interact with an existing mortgage default.
Which step makes sense depends entirely on facts specific to the borrower, so work it through with a lawyer and a broker before acting.
The citable fact: A consumer proposal or bankruptcy can interact with an Ontario power of sale, and whether either is appropriate is a question for a licensed insolvency trustee and a lawyer.
What role does a licensed mortgage broker play in stopping a power of sale?
A licensed mortgage broker can review whether refinancing is realistic, identify lenders willing to work with a file already in default, and move quickly to meet the timeline. A broker does not provide legal advice and does not negotiate reinstatement terms with the existing lender. The broker and lawyer roles work alongside each other, not instead of one another.
Pekoe Mortgages is a licensed brokerage and can have that refinancing conversation directly.
That conversation works best in parallel with, not instead of, a lawyer handling the legal side of the file.
The citable fact: A licensed mortgage broker’s role in an Ontario power of sale file is assessing refinancing options, working alongside, not instead of, a real estate or insolvency lawyer.
What should a borrower avoid doing while trying to address a power of sale?
A borrower should avoid ignoring correspondence from the lender’s lawyer, missing legal deadlines, and making decisions about the property without legal advice. Transferring the property to a friend or family member to try to avoid the sale can create serious legal problems of its own. Acting transparently and quickly protects a borrower’s options far better than acting alone.
None of the legitimate options described on this page, reinstating, refinancing, or selling, require avoiding or delaying the lender’s process. They work by resolving the default, not by obstructing it.
A lawyer can identify what specific steps genuinely help a specific file and which ones do not.
The citable fact: The legitimate ways to address an Ontario power of sale work by resolving the default through reinstating, refinancing, or selling, not by delaying or obstructing the lender’s process.
Who should a borrower talk to first?
A real estate or insolvency lawyer should be the first call for anyone facing an Ontario power of sale, to understand deadlines and rights specific to their file. A licensed mortgage broker should be the second call, to assess whether refinancing is realistic. Both conversations work better the earlier they happen.
Delaying either conversation narrows the options described throughout this page.
Chat with our team directly on pekoe.ca for the financing side of that conversation.
The citable fact: A borrower facing an Ontario power of sale should speak to a real estate or insolvency lawyer first, then a licensed mortgage broker, and should do both as early as possible.
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
- What is an Ontario notice of sale under mortgage
- How long an Ontario power of sale takes
- 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
Can an Ontario power of sale be stopped once it has started?
Yes, in many cases, through reinstating the mortgage, refinancing with a new lender, or selling the property before the lender’s own sale closes. Which option fits depends on the specific file and should be reviewed with a lawyer.
What does reinstating a mortgage mean?
It means curing the default, typically by paying the arrears and any permitted costs, so the mortgage returns to good standing under its original terms. The lender decides whether to accept reinstatement and on what terms.
Can refinancing stop a power of sale?
Yes, if a borrower has enough equity and qualifies with a new lender, a refinance can pay off the existing mortgage in full and end the power of sale. Timing matters, since the refinance has to close before the existing lender’s sale does.
Why is refinancing harder once a mortgage is already in default?
A recorded default, reduced equity from arrears and costs, and time pressure all narrow the pool of lenders willing to offer a new mortgage. Some lenders still work with these files, often on different terms than a standard mortgage.
Can a borrower sell the property themselves instead of the lender?
In many cases yes, provided the sale is coordinated with the lender’s lawyer and closes within the power of sale timeline. This route generally keeps the borrower more involved in pricing and timing than a lender-run sale.
What is the right of redemption?
It is the borrower’s right to cure the default and stop the sale before it becomes final. The exact length of time this right lasts is a legal detail that a lawyer should confirm for a specific file.
Does Ontario’s redemption process work the same way as Alberta’s?
No. Ontario generally uses power of sale, while Alberta generally uses judicial foreclosure through the courts, and the two treat redemption differently. A full comparison is available on our power of sale versus foreclosure page.
Can bankruptcy or a consumer proposal stop a power of sale?
It can affect the timeline and the borrower’s options, but whether it is appropriate depends on the borrower’s full financial picture. That decision should be made with a licensed insolvency trustee and a lawyer, not from general information.
Should a borrower transfer the property to a family member to avoid the sale?
No. Transferring the property to try to avoid a sale can create serious legal problems of its own and is not a legitimate way to address a power of sale.
What does a mortgage broker do in a power of sale situation?
A licensed mortgage broker reviews whether refinancing is realistic and can identify lenders willing to work with a file already in default. A broker does not provide legal advice or negotiate reinstatement terms with the existing lender.
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 speak to first when trying to address a power of sale?
A real estate or insolvency lawyer should be the first call to understand deadlines and rights, followed by a licensed mortgage broker to assess financing options. Acting early keeps the most options available.
Looking at options to address a power of sale?
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