Power of Sale Timeline in Ontario: How Long Do You Really Have?

If you have missed a mortgage payment and the words “power of sale” have entered the conversation, the first question on your mind is usually this: how long do I have before the bank sells my home?

In Ontario, the typical power of sale timeline is about six months from the first missed payment to the property being sold. That may sound like a long time, but once the legal notices begin, things move much faster than most homeowners expect. Understanding what happens at each stage gives you the best chance to protect your home or at least make the smartest decision for your situation.

The Timeline at a Glance

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Stage 1: The First Missed Payment

It often begins with just one missed payment. Maybe an unexpected bill came up or maybe you planned to catch up later. Nothing public has happened yet, but interest and penalties are already adding to your balance.

Most banks give a short grace period, but if the payment is not made, you will likely hear from them by the end of the month.

Stage 2: The Lender Reaches Out

Within the first month, the lender will call or send letters. At this stage it is more of a reminder than a threat. If you can make the payment, the issue usually ends here.

The tricky part is that many homeowners believe they have months before anything official happens. In reality, Ontario law allows a lender to issue a Notice of Sale after just 15 days in default. Most lenders wait longer, often 30 to 45 days, but the timeline can move quickly.

Stage 3: The Default Notice

Note: This step often overlaps with the lender’s phone calls or letters. Around Day 15, while you may still be receiving reminders, the lender may also move forward with issuing a Default Notice.

If the arrears continue, the lender will send a default notice. This is the official communication that you are behind and that the mortgage is not in good standing.

It does not yet mean your home is being sold, but it sets the stage for the next step, which carries much more weight.

Stage 4: The Notice of Sale

The Notice of Sale is the real turning point. It is registered on title, which means it becomes part of the property record, and it is served to you. From this moment, you enter what is called the redemption period.

The redemption period lasts at least 35 days, or 40 if the notice is mailed. During this time, you have the right to stop the process, but only if you pay the arrears along with the lender’s costs and legal fees.

For many homeowners, this is the moment when the seriousness of the situation becomes clear.

Stage 5: The Redemption Period

The redemption period is your final chance to bring the mortgage back into good standing before possession is enforced. To do this, you need to:

• Pay the missed payments
• Cover any late fees and penalties
• Pay the legal and administrative costs added by the lender

If you manage this, the process ends. If not, the lender is legally entitled to move forward and prepare the property for sale.

Stage 6: Lender Takes Possession

In Ontario, it takes over 3 months from the first missed payments before a lender takes possession. The big banks will likely take much longer, and some smaller lenders may be closer to 3 or 4 months. If arrears are not cleared by the end of the redemption period, the lender applies for a court order and then obtains a Writ of Possession. Once the writ is filed with the local Sheriff’s office, the Sheriff schedules enforcement. In many regions, the Sheriff delivers a written notice at the property advising occupants of the scheduled eviction date. This notice period is not fixed in provincial law, but in practice it is often a couple of weeks and can sometimes stretch longer depending on the Sheriff’s workload and local office practices.

On the appointed date, the Sheriff attends the property, ensures the occupants vacate or are removed if necessary, and supervises a locksmith who immediately changes the locks. From that point forward, the lender has physical control of the property and determines who may enter and how the property will be prepared for sale.

Stage 7: Statement of Claim (Sometimes)

Not every situation includes this step, but some lenders file a Statement of Claim if they believe the property may not sell for enough to cover the full debt. By filing this claim, the lender preserves the right to pursue you personally for any shortfall after the sale.

Stage 8: Power of Sale Listing

With possession secured, the lender usually hires a Realtor and lists the property on MLS. Homes under power of sale are typically priced to sell quickly. That often means the final selling price is lower than what you could have achieved if you had sold the property yourself. From the very first missed payment, this stage usually arrives within four to six months.

Stage 8: Sale Completed

Once the home sells, the money from the sale is applied in this order:

1. Legal and administrative costs, including Realtor commissions and sale expenses
2. The outstanding mortgage balance owing to the lender
3. Any remaining surplus funds, which are returned to you

If there is a shortfall and a Statement of Claim has been filed, you may still owe the remaining balance.

Can You Stop the Power of Sale Process Once It Starts?

Yes, but only if you act quickly. Here are common options:

• Catching up on arrears during the redemption period
• Asking the lender for a payment plan
• Refinancing with another lender
• Selling the home yourself before the lender takes over
• TRY TO AVOID THIS OPTION: Selling the home after the lender takes possession.

The earlier you act the more options you have. Once the Redemption Period is over, the timeline is no longer in your control; when the lender gets the Sherrif involved, you can be evicted, and the lender determines who lists the home for sale, for what asking price, and what closing date.

Can You Sell After the Lender Takes Possession?

In law, the homeowner remains the owner until closing. That means it is technically possible to sell the property even after the lender takes possession and even after the lender has signed an agreement with a buyer, as long as the lender’s sale has not yet closed. In practice, arranging a competing sale at that stage is difficult and can lead to disputes, so acting before possession is usually the better path. It is difficult to sell a house when you aren’t able to enter the house! But not impossible.

Why Homeowners Turn to GTA House Buyers

Many people contact us when they realize they cannot catch up on arrears. By that point, selling before the lender does is often the most realistic choice. At GTA House Buyers, we have been helping Ontario homeowners since 2008. We understand that this is stressful and often overwhelming, and we focus on making it simple and respectful. You choose the closing date, and we can often complete the process in just a few days. Everything is handled with dignity, privacy, and compassion.

Key Takeaway

The power of sale timeline in Ontario is shorter than most people expect. From the first missed payment to a completed sale, you may have only about six months. Once the Notice of Sale is served, the redemption period gives you just 35 to 45 days to act. If arrears are not paid, the lender can move quickly to possession. At that point, the Sheriff may evict occupants and a locksmith can change the locks.

Talk to Someone Today

If you are worried about the power of sale timeline in Ontario, the best thing you can do is start a conversation. At GTA House Buyers, we listen first and explain your options clearly. We work with you to make the process stress-free.

You do not have to wait until it is too late. Call us today at 647-848-7790 and find out what makes the most sense for your situation.