MortgageDefault.ca

General stages, not a countdown

Timeline: what happens and when

Every lender and situation is different. These are general ranges based on how Ontario power of sale typically unfolds, meant to help you understand where you are, not to alarm you.
  1. 1

    Missed payment(s)

    Month 1 to 3

    Lenders usually start with reminder calls and letters. Many wait until one to three payments are missed before formal steps.

    Options at this stage: Every option is typically still open, including negotiating with your lender.

  2. 2

    Demand letter

    Often month 2 to 3

    A formal letter asking you to bring the account current, sometimes from the lender's lawyer.

    Options at this stage: A good time to talk to a broker and confirm your equity and financing options.

  3. 3

    Notice of Sale

    After at least 15 days of default

    Served under the Mortgages Act, it must give at least 35 days before the lender can sell. Legal costs begin to be added.

    Options at this stage: You can generally bring the mortgage back into good standing or pay it out. Speak with a lawyer.

  4. 4

    Statement of Claim / possession

    After the notice period

    If unresolved, the lender may sue for possession and the amount owed. There are strict deadlines to respond.

    Options at this stage: Financing or a sale may still be possible. Legal advice is essential at this stage.

  5. 5

    Listing and sale

    Weeks to months after possession

    The lender lists the property and must aim for fair market value.

    Options at this stage: Until a binding sale agreement exists, you can usually still redeem by paying the mortgage in full.

  6. 6

    Closing and distribution

    At closing

    Proceeds pay the mortgage, costs and other registered debts. Any surplus generally goes to the homeowner.

    Options at this stage: Ask your lawyer to review the lender's accounting of proceeds.

Overall, the process from first missed payment to a completed sale commonly spans several months and can be longer. Timelines depend on the lender, the mortgage terms, whether the matter goes to court, and the property market. Always rely on the dates in your own documents and your lawyer's advice.

Talk it through, privately.

A free, confidential conversation, no judgment, no pressure, and no credit check to start. We'll look at where things stand and what your realistic options are.

Request a confidential consultation Text 647-342-1355