A missed mortgage payment, a renewal you can't afford, a separation, or an estate with bills piling up: these sales come with deadlines and a lot of stress. Selling isn't always the answer, but if it is, an owner-led sale gives you more say over preparation, marketing and timing, within the lender's deadlines. This page covers who to talk to first, how the usual power of sale timeline works, and how I handle a sale when time is short. The conversation is confidential, and there's no obligation.
Talk to these people first
| Option | Who to ask |
|---|---|
| Catching up arrears, deferring payments, extending the term | Your lender, as early as you can |
| Refinancing, or a second mortgage to cover arrears | A licensed mortgage broker. Private lending is expensive, so look at the full cost |
| Your Notice of Sale, the deadline, and dealing with the lender | A real estate lawyer |
| Consumer proposal or bankruptcy | A Licensed Insolvency Trustee |
| Budget and debt help | A non-profit credit counselling agency |
| Selling on your own terms | That's where I come in |
The usual power of sale timeline in Ontario
This is the usual route for a mortgage that contains its own power of sale. Mortgages without one follow a different, longer statutory route. Your notice and your lawyer give your real dates.
- Missed payments. The lender sends reminders and demand letters, and default charges and interest add up.
- Notice of Sale. For most mortgages, the Mortgages Act requires the payment to be at least 15 days in default before a Notice of Sale, and the notice to give at least 35 days. Your mortgage may give more.
- Act during the notice period. You may be able to bring the mortgage back into good standing or pay it out, but don't wait for a closing date. Your rights can end once the lender enters a binding agreement to sell.
- The lender may market the property and may take steps to obtain possession.
- After a lender's sale, the lender takes what it's owed plus its costs. Any money left over goes to other creditors and then to you. If there's a shortfall, the lender can pursue you for it.
How an owner-led sale may protect your equity
- You control preparation and marketing: cleaning, small repairs, photos and showings, subject to the lender's deadlines.
- Fewer enforcement costs if you act early. The longer a lender's enforcement runs, the more legal and other costs are added to what you owe.
- You choose the timing of your move, within the deadlines your lawyer confirms.
A sale only helps if the numbers work, so we start with them.
How I handle the sale
- A confidential call. Where things stand, any deadline you're working to, and what you want to happen. Share a short summary. I don't need statements, account numbers or ID.
- An estimated net number, in writing. What you might walk away with after the mortgage payout (including any penalty and the lender's enforcement costs), other secured debts, property tax or condo arrears, commission and HST, and legal fees. It stays an estimate until the lender's payout statement arrives and your lawyer confirms it. The Seller Net Sheet gives a first look.
- A timeline your lawyer has checked against your deadline: listing date, offer date and a closing date, plus any written agreement your lawyer gets from the lender.
- Your lawyer leads with the lender. With your permission, I send your lawyer what they need, such as the listing agreement and any accepted offer.
- Discreet marketing. Your circumstances never go in the listing or the marketing without your written OK. Showings are booked around you.
- Priced from recent sales near you, with the reasoning shown, and a price that fits your deadline.
Other reasons for a quick sale
- Separation: see Divorce & Estate Sales.
- An estate carrying costs on an empty home: see selling a house as an executor.
- A renewal at a payment you can't carry, or job loss or illness.
- Property tax arrears follow a separate municipal tax sale process, with its own notices, separate from your mortgage. Talk to the municipality's tax office early.
What this isn't
- Not a cash “we buy houses” offer. Your home goes on the open market.
- Not legal or financial advice, and a listing on its own doesn't stop a power of sale.
- If your lender has already listed the home, contact your lawyer straight away.
- Not intended to solicit sellers already under contract with another brokerage.
Frequently asked questions
You may still be able to, but act now. Your rights can end once the lender enters a binding agreement to sell, so don't plan around the lender's closing date. A lawyer confirms your deadline, the payout and whether the lender will agree in writing to wait for your sale.
For most mortgages the notice gives at least 35 days, and your mortgage may give more. Some mortgages follow a different statutory route. Have a lawyer read your notice and confirm the real deadline.
Not automatically. An accepted offer isn't payment and doesn't by itself make the lender wait. Your lawyer can ask the lender for a written agreement to postpone while your sale closes.
A sale would need the lender's agreement to accept less, and you may still owe the shortfall. Talk to your lawyer and a Licensed Insolvency Trustee before you list.
No. It's paid from the sale proceeds at closing, along with the mortgage payout and legal fees. Your estimated net number shows it before you list.
I won't put your circumstances in the listing or any marketing without your written OK. The listing describes the home, and showings are booked around you.
Usually not on its own. The stay generally doesn't stop a secured lender from enforcing. A Licensed Insolvency Trustee can tell you what applies to you.