A power of sale notice is not the end. Act now.
If your lender has issued a Notice of Sale or missed payments are accumulating, you still have options. Private mortgage financing can stop the process and give you time to find a stable path forward — but timing matters.
Important
Power of sale situations are time-sensitive and involve legal rights. This page provides general information only. Speak with a licensed mortgage broker and a real estate lawyer as soon as possible. Do not make financial decisions based solely on website information in an urgent situation.
When to Contact Us
Situations where we may be able to help
- You've received a Notice of Sale or missed multiple mortgage payments and your lender has issued demand
- You want to stop a power of sale and protect the equity you've accumulated in your home
- Your current lender won't work with you on an arrangement but you need time to stabilize
- You intend to sell your property but want to do so on your terms, not under lender pressure
- You have a plan to restore your finances but need 6–12 months of breathing room
- You've exhausted conversations with your existing lender and need an immediate alternative
Typical Terms Overview
Rates shown are indicative ranges for general information only. Your actual rate will depend on property type, location, loan-to-value ratio, borrower profile, and other underwriting factors. Rates are subject to change without notice.
The Process
How power of sale prevention works
Speed is essential. From first contact, we move as quickly as possible to assess viability and arrange financing if the numbers work.
Urgent review
We review the Notice of Sale, property details, outstanding mortgage balance, and your equity position. Time is critical — contact us as soon as you receive a notice.
Determine if equity is sufficient
A private lender will refinance the property if enough equity exists to cover the outstanding mortgage, arrears, lender fees, and new mortgage costs. We calculate this immediately.
Emergency funding
If viable, a private lender provides emergency financing to pay out the defaulted mortgage, bring arrears current, and stop the power of sale process.
Stabilization plan
You now have a new short-term private mortgage, interest-only payments, and time to stabilize — whether through selling, refinancing, or improving your credit for institutional financing.
What Determines Feasibility
What makes a power of sale rescue possible
Equity remaining after arrears
The decisive factor. If your property has sufficient equity to cover the existing mortgage balance, all arrears, fees, and the new private mortgage costs, financing may be possible. Very low or negative equity positions are very difficult to fund.
Stage of the power of sale process
Ontario's Mortgages Act gives homeowners a redemption period after a Notice of Sale is issued. Acting quickly gives more options. Applications received very close to the sale date are significantly harder to facilitate.
Property marketability
Lenders still need to assess the property's value and resale quality. Properties in good condition with clear title in accessible markets are easier to finance than those with title issues or significant deferred maintenance.
Your exit strategy
A credible plan matters. Lenders want to understand how you intend to repay the private mortgage when the term ends — whether by selling, refinancing to a conventional lender, or another documented plan.
Common Questions
Power of sale FAQ
I just received a Notice of Sale. How long do I have?
In Ontario, the Mortgages Act requires lenders to provide a minimum of 35 days' notice (for residential properties) before they can proceed. However, the timeline depends on when the notice was issued, the type of default, and whether you are already in a court process. Contact a mortgage broker and a real estate lawyer immediately. Do not wait to see what happens.
Can you stop a power of sale that is already in progress?
In many cases, yes — if sufficient equity exists. As long as the property has not yet been sold at power of sale, it may be possible to arrange private financing to pay out the defaulted lender and halt the process. The closer you are to the sale date, the fewer options remain. Early contact is essential.
Will I lose my home through a power of sale?
Not necessarily. Power of sale is a process — it takes time, and homeowners retain the right to redeem (pay out the mortgage) during the statutory redemption period. If you have equity in the property, you have leverage. Private financing is one tool, but selling voluntarily is another. The goal is to ensure you — not your lender — control how and when the property disposes.
What interest rates apply to power-of-sale prevention mortgages?
These are higher-risk situations and rates reflect that. Expect rates in the 12–16% annual range or above, depending on the equity available and urgency. Fees will also apply. However, for a homeowner with significant equity, these costs are typically far less than the loss of equity in a forced sale. Your broker will provide specific figures upfront.
Do I need a lawyer for this?
Yes. Any mortgage transaction in Ontario requires legal representation, and power of sale situations add additional complexity. Your lawyer will advise on your redemption rights and review all mortgage documents. If you don't have a real estate lawyer, we can refer you to one experienced in this type of transaction.
Time is the most important factor. Contact us now.
We review power of sale situations urgently. Tell us what you've received and we'll tell you honestly whether we can help.