Understanding and Stopping Power of Sale

Understanding Power of Sale

A power of sale is a legal procedure that allows lenders to sell a property when borrowers default on their mortgage payments. This clause is typically written into most mortgages and gives the mortgage lender the right to sell the property if the borrowers fall behind on mortgage payments. It’s a common misconception that the lender wants to sell the property, but in reality, lenders would rather have the borrower keep their home and continue making payments. The power of sale process is initiated when a borrower fails to make their mortgage payments for a certain period of time.

The Power of Sale Process

The power of sale must follow a strict procedure in order to complete the full power of sale process. It begins with the lender contacting the borrower upon default. If the borrower continues to be in default, the lender can deliver a Notice of Sale. This notice should be mailed to every party who is considered a mortgagor and a mortgagee in the agreement. The Notice of Sale is the first formal step in the power of sale process and it indicates the lender’s intention to sell the property if the default is not rectified. The borrower then has a redemption period during which they can pay off the arrears and stop the power of sale process.

It’s important to note that the lender may demand that the mortgage be repaid in full after the redemption period has expired. After that, the lender’s law firm will also be able to issue the writ of possession. Essentially, they can appoint a sheriff to evict you from your home using this legal document. This is a serious consequence of the power of sale process, and it underscores the importance of taking action early to stop the power of sale.

Stopping Power of Sale

The best way for a borrower to stop power of sale is to bring their mortgage out of default. Paying off the borrower’s arrears plus any legal fees will stop a power of sale. Alternatively, they can also pay the mortgage off in full, along with the legal fees. It’s important to note that stopping a power of sale can be a complex process, and it’s often beneficial to seek professional advice to ensure the right steps are taken.

Possible Remedies

There are several remedies available to borrowers facing a power of sale. These include paying off the mortgage arrears, refinancing the mortgage, selling the property, or filing a consumer proposal or bankruptcy. Each of these options has its own advantages and disadvantages, and the best choice will depend on your individual circumstances.

Short Term Refinancing

Short term refinancing is another option for stopping a power of sale. This involves taking out a new mortgage to pay off the existing one. The new mortgage will have a shorter term, typically six months to one year, and may have a higher interest rate. However, it can provide borrowers with the funds needed to pay off mortgage arrears and stop the power of sale process. TheBroker.ca Ltd. can provide borrowers with the necessary information and resources to understand short term refinancing, and help them make informed decisions about their mortgage.

Working with TheBroker.ca Ltd.

Understanding the power of sale process and how to stop it is the first step when dealing with mortgage defaults. TheBroker.ca Ltd. can provide guidance on navigating the power of sale process. We can help you understand your rights and responsibilities during this process and can assist you in exploring various options to stop the power of sale. We also help you understand the implications of the power of sale process, including the potential impact on your credit score and future borrowing ability.

TheBroker.ca Ltd. has experience in assisting individuals that are experiencing credit issues including power of sale situations. We have worked with individuals that had fallen behind on their mortgages, and successfully secured new financing for them, by offering personalized advice and solutions. We work closely with clients to understand their unique financial situation and goals, and use this information to match them with the best mortgage options available.


This article is a brief overview of the power of sale process and the possible remedies available to borrowers. At TheBroker.ca Ltd, we understand that applying for a mortgage can be challenging and frustrating. We work closely with many lenders to ensure that our clients receive the most suitable mortgage approvals based on their individual circumstances. As part of that commitment we are constantly upgrading our knowledge about the mortgage products offered by our lenders, and the latest mortgage industry news and trends, so we can provide our clients with the information they need to make informed decisions about their mortgage options.

About Us

At TheBroker.ca Ltd, we are constantly looking for ways to provide helpful advice related to mortgages, current mortgage rates, and more. If you have any questions or need further assistance, we offer a complimentary no-obligation consultation. Feel free to reach out to us at (519) 252-9665 during our regular business hours. Alternatively, you can fill out our contact form, and your message will be promptly emailed to us. We value your time and inquiries, and we make it our priority to respond to all messages within one business day. When reaching out, please provide us with your contact details, a brief overview of your mortgage needs, and the most convenient times for you to have a consultation. We look forward to assisting you with your mortgage.

This article was brought to you by TheBroker.ca Ltd., a mortgage brokerage that is licensed with the Financial Services Regulatory Agency of Ontario (FSRA), which regulates businesses in the financial sector. The Principal Broker Sash Trajkovski has over 20 years of real estate and mortgage experience in the Ontario marketplace. You can verify our licenses by visiting the following links from FSRA’s website: our corporate license and Principal Broker license. Our mortgages services are available to all residents of Ontario. If you’re in Ontario and looking for more personalized advice and information, consider booking your Complimentary Consultation today, and let us help you understand the details that will guide you on your path to a suitable mortgage solution.

Disclaimer: Please note that this information is current as of the date of publication and is intended to be general in nature. It is not intended to provide legal, tax, financial, or other professional advice and should not be relied upon as such. Always consult with a professional for advice tailored to your individual circumstances.

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