- | Stage | Best Options | Approximate Time Available | |---|---|---| | Notice of Sale just received | Reinstate, Negotiate, Refinance | Until notice period expires | | Notice period still…
- When it works: You can come up with the overdue payments, plus the lender's reasonable enforcement costs, before the statutory notice period expires.
- When it works: You have access to enough money to discharge the full mortgage balance, accrued interest, and enforcement costs — not just the arrears.
Falling behind on a mortgage is frightening. If your lender has sent you a Notice of Sale, you may be wondering whether anything can still be done. The short answer is yes — and knowing how to stop a power of sale in Ontario starts with understanding which options are available at your particular stage of the process.
Ontario law gives homeowners specific rights and time windows to act. The sooner you get legal advice, the more options remain open. This article walks through every realistic path — from catching up on arrears to challenging a flawed notice — so you can figure out which one fits your situation.
Acting fast matters. Most of the options below have hard deadlines tied to the statutory notice period (as of writing, at least 35 days after the notice is served — verify the current period with a lawyer before relying on it).
Quick Decision Guide
| Stage | Best Options | Approximate Time Available |
|---|---|---|
| Notice of Sale just received | Reinstate, Negotiate, Refinance | Until notice period expires |
| Notice period still open | Reinstate, Redeem, Sell, Refinance | Days to weeks — act immediately |
| Notice period expired, sale not closed | Redeem, Sell, Court Injunction | Very limited — often days |
| Sale closed | Almost none — seek insolvency advice | Extremely urgent |
| Defective notice suspected | Challenge procedurally | At any point before sale closes |
| Significant debt beyond mortgage | Consumer proposal / bankruptcy | Before sale closes |
Option 1: Reinstatement — Pay the Arrears and Costs
When it works: You can come up with the overdue payments, plus the lender's reasonable enforcement costs, before the statutory notice period expires.
What's required: You must pay all missed mortgage payments, any accrued interest on those amounts, and the lender's documented costs of issuing the notice. You do not have to pay off the entire mortgage — only what is overdue. The mortgage then continues on its original terms.
Realistic time window: The clock starts when the Notice of Sale is properly served. As of writing, the minimum notice period under Ontario legislation is 35 days, but your mortgage contract may provide a longer period — check the document. Once that window closes, the right to reinstate is lost and you would need to redeem instead.
Reinstatement is the fastest and least expensive fix if you have the funds or a family member willing to lend them.
Option 2: Redemption — Pay Off the Entire Mortgage
When it works: You have access to enough money to discharge the full mortgage balance, accrued interest, and enforcement costs — not just the arrears.
What's required: Full payout of the mortgage. A real estate lawyer can obtain a discharge statement from the lender showing the exact payout figure as of a specific date.
Realistic time window: The right of redemption in Ontario extends until the power of sale transaction is actually completed (i.e., the property transfers to a buyer). This gives you a longer window than reinstatement, but once the sale closes, redemption is gone.
Option 3: Refinancing — Replace the Lender
When it works: You have enough equity in the property that a new lender is willing to lend you the amount needed to pay out the existing mortgage.
What's required: A new mortgage commitment, completion of the refinance, and discharge of the old mortgage — all before the power of sale closes. Brokers who specialize in private or alternative lending can sometimes move quickly, but institutional lenders typically cannot.
Realistic time window: Weeks, not days. The appraisal, underwriting, and closing process takes time. If the notice period has expired, this becomes very difficult to complete in time. Start immediately.
Option 4: Sell the Property Yourself
When it works: You have equity in the property and enough time to list, accept an offer, and close — all before the lender's power of sale transaction closes.
What's required: You list the property, find a buyer, and close. The proceeds first repay the mortgage in full (including costs); you keep anything left over. This is almost always better than letting the power of sale complete, because power of sale purchasers typically pay below market value.
Realistic time window: Tight, but possible if you move quickly. Talk to a real estate lawyer the same day you decide to pursue this route.
Option 5: Negotiate with the Lender
When it works: You have a plausible path to catching up — temporary income disruption, a pending sale of another asset, a family contribution — and the lender is willing to formalize an arrangement.
What's required: A written forbearance agreement (a temporary pause or reduction in payments), a loan modification, or a structured payment plan. Verbal agreements are dangerous — get everything in writing.
Realistic time window: Possible at any stage before the sale closes, but lenders are under no obligation to negotiate. Having a lawyer communicate on your behalf often produces better results than direct contact.
Option 6: Court Injunction — Stop the Sale Through the Courts
When it works: There is a specific legal basis — not just financial hardship — such as a serious procedural error by the lender, evidence of bad faith, or irreparable harm that money cannot remedy.
What's required: A court application, typically on an urgent basis. The standard is high: you generally must show a serious issue to be tried, that the balance of convenience favours a stay, and that damages would not be an adequate remedy. Courts do not grant injunctions simply because a borrower is sympathetic.
Realistic time window: This is an emergency measure and requires immediate legal action. Do not wait until the day of the sale.
Option 7: Challenge a Defective Notice of Sale
When it works: The Notice of Sale was not properly served, contains incorrect amounts, or was issued before the mortgage was actually in default under its terms.
What's required: A lawyer reviews the notice, the mortgage document, and the service record for procedural errors. A defective notice may need to be re-served, restarting the statutory notice period — effectively buying you time.
Realistic time window: Can be raised at any point before the sale closes, but raising it late limits its practical effect. Have a lawyer examine the notice as soon as you receive it.
Option 8: Personal Insolvency — Consumer Proposal or Bankruptcy
When it works: Your mortgage arrears are part of a larger debt problem that cannot be solved by selling or refinancing the property alone.
What's required: Filing a consumer proposal or assignment in bankruptcy under federal insolvency legislation triggers an automatic stay of proceedings. This temporarily halts the power of sale, giving you time to reorganize. Insolvency is a separate legal process administered by a Licensed Insolvency Trustee — not a real estate lawyer — but a real estate lawyer can coordinate with one.
Realistic time window: The stay takes effect on filing, so it can move quickly. However, secured creditors (mortgage lenders) have specific rights in insolvency that must be addressed. This is not a permanent solution unless the underlying mortgage debt is resolved.
What NOT to Do
These mistakes can destroy your remaining options:
- Ignore the notices. Every day of inaction shrinks your window. The notice period runs whether or not you open the envelope.
- Move out before getting legal advice. Vacating the property does not help you and may complicate your position. Stay put until a lawyer tells you otherwise.
- Transfer the property to a family member to avoid the sale. Transfers made to defeat a creditor can be set aside by a court. This does not work and may expose the family member to legal consequences.
- Rely on verbal promises from the lender. If it is not in writing and signed, it does not exist.
- Wait to see if the lender is bluffing. Lenders in Ontario generally follow through. Treat every notice as real.
Frequently asked questions
How long do I have after receiving a Notice of Sale before I lose my home?
The statutory minimum notice period under Ontario law is currently 35 days from proper service of the notice — verify this with a lawyer, as it can change. After that period, the lender can proceed toward completing the sale, though the sale itself takes additional time. You retain the right to redeem (pay out in full) until the transaction closes. If the notice was served incorrectly, the period may not have started at all.
Can I stop a power of sale if I cannot afford to pay the arrears or the full mortgage?
Possibly, depending on your equity and your broader debt picture. If you have equity, selling the property yourself or refinancing may cover the debt. If you have no equity and significant other debts, a consumer proposal or bankruptcy may provide temporary breathing room. Injunctions are an option only if there is a legitimate legal defect — not simply because you cannot pay.
Does filing for bankruptcy automatically stop a power of sale in Ontario?
Filing a consumer proposal or bankruptcy does trigger an automatic stay of proceedings under federal insolvency legislation, which temporarily halts the power of sale. However, a lender can apply to court to lift that stay with respect to secured property, especially if you cannot make ongoing mortgage payments or show a realistic plan. This buys time but is not a guaranteed permanent solution.
What if the Notice of Sale has the wrong amount on it?
A notice that overstates the arrears or fails to account for payments already made may be procedurally defective. Have a lawyer compare the notice against your mortgage statement and payment history immediately. If there is a material error, the lender may need to re-serve a corrected notice — restarting the notice period. This is a legitimate procedural defence, not a delay tactic, and courts take it seriously.
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