What to Do If You Receive a Notice of Sale in Ontario

Adovcate, Law
By: F.M. Sajid Bin Hossain Date: 2026-03-08

What to Do If You Receive a Notice of Sale in Ontario

What to Do If You Receive a Notice of Sale in Ontario

Receiving a Notice of Sale under Mortgage or a Statement of Claim seeking mortgage enforcement can be one of the most stressful experiences for a homeowner or property owner. Many borrowers assume that once a lender begins enforcement proceedings, losing the property is inevitable.

However, under Ontario law, borrowers still have several important legal rights and options, even after mortgage enforcement proceedings have started.

Understanding these rights—and acting quickly—can significantly improve your chances of protecting your property.

What Is a Notice of Sale in Ontario?

In Ontario, most mortgage lenders enforce mortgages through the power of sale process, rather than foreclosure.

Before selling a property, the lender must serve a Notice of Sale under Mortgage in accordance with the Mortgages Act.

Mortgage Defence

This notice typically includes:

  • the mortgage in default
  • the nature of the default (usually missed payments)
  • the amount claimed by the lender
  • the deadline to cure the default

Borrowers usually have 35 days to pay the default amount for residential properties (or 40 days for commercial properties) before the lender can proceed with the sale.

Can You Stop a Power of Sale in Ontario?

Yes. Even after receiving a Notice of Sale, borrowers often still have options to stop or delay the power of sale process.

Possible options include:

  • redeeming the mortgage
  • negotiating a repayment plan
  • refinancing the mortgage
  • challenging the enforcement process
  • disputing the amount claimed by the lender

In many cases, borrowers retain rights until the lender actually enters into a binding agreement to sell the property.

Option 1: Redeem the Mortgage

One of the most important rights available to borrowers is the right of redemption.

Under the Mortgages Act, a borrower may redeem the mortgage by paying the amount owing before the lender completes the sale of the property.

Mortgage Defence

The redemption amount usually includes:

  • the outstanding principal
  • accrued interest
  • legal costs
  • enforcement expenses

Ontario courts have confirmed that the borrower’s right to redeem generally continues until the lender signs a binding agreement of purchase and sale.

Mortgage Defence

Option 2: Request a Statement of Account

Borrowers also have the right to request a detailed statement from the lender explaining the amount claimed to be owing.

The lender must provide a written statement identifying:

  • the principal and interest in default
  • the nature of the default
  • enforcement costs and expenses

Mortgage Defence

If the lender fails to provide this statement within 15 days without reasonable excuse, its right to enforce the mortgage may be temporarily suspended.

Mortgage Defence

This can sometimes provide borrowers with additional time to resolve the default.

Option 3: Review Whether the Notice of Sale Is Valid

A Notice of Sale must strictly comply with the requirements of the Mortgages Act.

Errors in the notice can potentially invalidate the enforcement process.

Common issues include:

  • incorrect property descriptions
  • inaccurate calculation of the mortgage balance
  • failure to properly serve all required parties
  • service that does not comply with statutory requirements

Mortgage Defence

Courts have emphasized that strict compliance with power of sale procedures is required.

Option 4: Challenge Improper Fees and Penalties

Mortgage enforcement statements often include additional charges such as:

  • bonus interest
  • administrative fees
  • legal costs
  • enforcement expenses

Some of these charges may be unenforceable or excessive.

Courts have occasionally refused to enforce penalty clauses or oppressive charges where they are disproportionate or unconscionable.

Mortgage Defence

Reducing these charges can significantly reduce the amount required to redeem the mortgage.

Option 5: Seek Alternative Financing

In many cases, borrowers may be able to refinance the mortgage with another lender.

Ontario law allows a borrower who is entitled to redeem the mortgage to require the lender to assign the mortgage to another lender or third party instead of discharging it.

Mortgage Defence

This option may allow borrowers to secure alternative financing and avoid losing the property.

Option 6: Court Motions or Injunctions

Although courts generally allow lenders to exercise their rights, they may intervene in exceptional circumstances, including where:

  • the lender has acted in bad faith
  • the enforcement process is defective
  • the borrower pays the amount owing into court

In such cases, the court may grant an injunction or other relief to delay or stop the sale.

Mortgage Defence

When Should You Contact a Mortgage Defence Lawyer?

Mortgage enforcement proceedings move quickly. Once the lender enters into an agreement to sell the property, the borrower’s ability to stop the process becomes much more limited.

You should speak with a lawyer immediately if you receive:

  • a Notice of Sale under Mortgage
  • a Statement of Claim for mortgage enforcement
  • a power of sale notice
  • a court application for possession

Early legal advice can help you understand your options and potentially protect your property.

Speak With a Mortgage Enforcement Defence Lawyer in Ontario

If you have received a Notice of Sale or mortgage enforcement claim, it is important to obtain legal advice immediately.

Our firm assists property owners across Ontario with:

  • power of sale defence
  • mortgage enforcement litigation
  • injunction motions
  • negotiations with lenders
  • mortgage redemption and refinancing strategies

If your lender has started enforcement proceedings, contact our office today to discuss your options.

FAQ – Notice of Sale in Ontario

How long do you have after receiving a Notice of Sale in Ontario?

Typically 35 days for residential properties and 40 days for commercial properties to remedy the default.

Can you stop a power of sale in Ontario?

Yes. Borrowers may stop a power of sale by redeeming the mortgage, refinancing, negotiating with the lender, or challenging the enforcement process.

What happens if you ignore a Notice of Sale?

If no action is taken, the lender may eventually sell the property under power of sale to recover the mortgage debt.