Steps to Take After a Notice of Sale in Ontario Is Issued(Before It’s Too Late)

1) What is a “Notice of Sale Under Mortgage” in Ontario?

A Notice of Sale Under Mortgage is a formal legal notice your lender (or their lawyer) sends when you’re in mortgage default and the lender intends to enforce the mortgage—most commonly through a power of sale (selling the property to recover the debt). Ontario treats “power of sale” as a standard mortgage enforcement route when the mortgage documents allow it.

Here’s the key point most homeowners miss:

Receiving the notice does not mean the lender already owns your home.

2) The Ontario timeline you need to understand (this is where people lose weeks)

Ontario law builds in minimum waiting periods.

Step A: Default must continue for at least 15 days before notice can be given

Under Ontario’s Mortgages Act, a notice related to exercising the power of sale generally cannot be given until the default has continued for at least 15 days.

Step B: After the notice of sale, there’s typically a 35–45 day window (depending on the type of power of sale)

Ontario forms and statutory rules commonly reflect:

• At least 45 days where the power of sale is exercised under certain statutory provisions, and

• At least 35 days where the power of sale is exercised under other provisions (commonly contractual power of sale).

Translation: the notice is a starter pistol, not the finish line—but the clock is running.

Also: real life can move faster or slower depending on access, court steps for possession, tenant issues, bankruptcy filings, and lender/lawyer pace. The safest assumption is: act immediately.

3) What happens if you ignore the notice?

If the default isn’t fixed by the deadline, the lender may proceed with enforcement steps that can include:

• moving toward possession (sometimes requiring court involvement), and/or

• listing the property for sale to recover principal, interest, and enforcement costs.

And two money realities matter a lot:

1. If the sale price is higher than what’s owed + costs, the surplus generally goes back to you (or other claimants entitled to it).

2. If the sale price is not enough, the lender may pursue a deficiency claim against borrowers/guarantors (depending on the situation).

So the goal isn’t just “stop the sale.” It’s also protect your equity and reduce the damage.

4)  Key steps to take immediately (Ontario homeowner checklist)

1) Read the notice like a contract (because it is one)

Look for:

• the date of service (your countdown anchor)

• the arrears, interest, legal costs, and any amounts for taxes/insurance

• the remedy deadline
  If anything looks wrong, don’t assume—verify.

2) Ask for a written payout or reinstatement statement (same day if possible)

You want two numbers:

• Reinstatement amount (bring payments current + costs)

• Payout amount (full mortgage discharge)
  Knowing these numbers drives every smart option for a notice of sale: refinance, sell, or negotiate.

3) Don’t “ghost” the lender’s lawyer—communicate (strategically)

Silence often accelerates enforcement. A simple, calm reply like:

• “I’m reviewing options and will respond by ___”

• “Please confirm the reinstatement amount as of ___”
  can buy clarity and sometimes time.

4) Build a 30-day survival budget (you need cashflow truth)

This isn’t motivational—this is math.

• Can you realistically carry the home after fixing arrears?

• Or is the win condition protecting equity through a sale/refi?

If the budget doesn’t work, the best move might be to exit with control, not wait for a forced timeline.

5) Choose your “stop-the-clock” strategy for a notice of sale: reinstate, refinance, or sell

Here’s how to think about it:

A) Reinstate (best when the problem was temporary)
If your arrears are manageable and income is stable, reinstatement can end the process quickly.

B) Refinance / second mortgage (best when you have equity but can’t qualify traditionally)
Ontario homeowners often use:

• a second mortgage to clear arrears, taxes, consumer debt, or missed payments

• a refinance that rolls everything into one payment
  Done right, this can stop the process and reduce total monthly pressure.

C) Sell the home (best when affordability is broken, but equity exists)
Selling yourself can protect equity because you control:

• listing strategy

• staging/repairs (if feasible)

• timeline negotiations
  If you wait, the lender still has duties to act properly, but you lose leverage and options.

6) Watch for “hidden defaults” that keep re-triggering enforcement

In Ontario, defaults aren’t only missed mortgage payments. Common triggers include:

• unpaid property taxes

• lapsed home insurance

• some condo-related issues (if applicable)
  If you fix payments but ignore taxes/insurance, you can end up right back in the same nightmare.

7) Get the right help early (and keep your paperwork tight)

At minimum, you want:

• someone to map options (refi vs sell vs workout plan)

• someone to review the enforcement steps if things look off
  Ontario is very process-driven here, with formal notice requirements and timelines.

Important: I’m not a lawyer, and this isn’t legal advice—but acting early is consistently the difference between a controlled outcome and a chaotic one.

5) Refinance vs. sell: a simple decision guide

If you’re stuck, use this quick filter:

Refinance/Second Mortgage tends to fit when:

• you have enough equity to restructure

• income is steady enough that the new payment is realistic

• you want to keep the home long-term

Selling tends to fit when:

• the home payment no longer works (even after restructuring)

• debt load is too heavy

• you need a clean reset while preserving equity

And remember: in a power of sale, the lender sells to recover the debt—not to maximize what you walk away with, even though they must act properly and account for proceeds and surplus.

6) The biggest mistakes Ontario homeowners make after a Notice of Sale

• Waiting for a “final notice.” This is the meaningful notice.

• Assuming foreclosure = power of sale. They’re different remedies.

• Only focusing on the arrears, not the bigger affordability problem.

• Taking a high-cost fix without a long-term plan (and ending up in default again).

• Not protecting credit and paperwork (missed documents, missed deadlines, disorganized income proof).

7) FAQs: Notice of Sale Under Mortgage (Ontario)

Can a lender send a Notice of Sale right after I miss one payment?

Typically, the default must continue for at least 15 days before the notice can be given under Ontario’s Mortgages Act framework.

How long do I have to stop the process?

Often 35–45 days or more from service of notice depending on the type of power of sale and the legal route, with Ontario forms reflecting those minimums.

Do I still own my home after I get the notice?

Usually yes—this is a notice of intention/enforcement steps, not an immediate transfer of ownership.

If the home sells for more than what I owe, do I keep the extra?

Generally, surplus proceeds after paying the mortgage debt and costs are paid out to the borrower or others with valid claims.

What if the home sells for less than what I owe?

A lender may pursue a deficiency claim in some circumstances.

Is power of sale common in Ontario?

Yes—power of sale is widely used as a mortgage enforcement remedy in Ontario when the mortgage includes that clause/right.

Conclusion: Treat the notice like a deadline to protect your equity

A Notice of Sale Under Mortgage in Ontario is serious—but it’s also a window of opportunity. If you move fast, you can often:

• stop the enforcement,

• protect your equity,

• and choose the least-damaging path (reinstate, refinance, or sell on your terms).