Power of Sale Process Ontario

There are a lot of questions about how the power of sale process works in Ontario. There are two distinct types, Contractual and Statutory. Also, what are the differences between power of sale and foreclosures in Ontario? Here’s a short excerpt from a very detailed article at Canadalend.com

“The power-of-sale process in Ontario was created to keep “foreclosure” out of the court system and allow the lender the get the defaulted loan back in order. Still, a power of sale can occur quickly, in as little as 53 days. Again, if the power of sale goes through, any extra money is given to the homeowner unless there is a shortfall, in which case, the owner is responsible to make up the difference.

But the power-of-sale process is a lot less painful than a foreclosure. A foreclosure is a legal process where the lender gets a court order to take possession of the property. The rules for a foreclosure are also a lot stricter than with a power of sale. In a foreclosure, ownership goes to the lender. The lender does not need to negotiate with the prospective buyer and, as a result, the selling price is not as important as it would be with a power of sale in Ontario. At the same time, any profits that come from the sale of the house go to the lender. As does any loss.

Major Differences

Power of Sale

  • Borrower remains title holder
  • Property usually sold using a realtor
  • Borrower responsible for any losses
  • Extra money from sale goes to borrower


  • Property gets transferred to lender
  • Property usually sold at auction
  • Borrower is not responsible for any losses
  • Extra money goes to the lender”

The article is a wealth of information about the power of sale process in Ontario and is highly recommended.



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