Power of Sale
Stop a Power of Sale in Ontario
A power of sale notice is a clock, not a verdict. If there's equity in your home, the arrears can be paid out with a new mortgage before the deadline — and your credit score isn't what decides it.
Stonefield Capital helps Ontario homeowners stop a power of sale by refinancing the defaulted mortgage, arrears and legal costs with a private mortgage before the redemption period under the Mortgages Act expires. Approval is based on the equity in the property and a clear exit rather than credit score or income; a Notice of Assessment is always requested to confirm no CRA arrears. Funding can happen in as little as 48 hours once legal counsel is ready. Borrowers are matched with a Stonefield-approved mortgage broker who runs the file against the deadline.
Why Your Bank Won't Help Once the Notice Arrives
In Ontario a lender who hasn't been paid can serve a Notice of Sale under the Mortgages Act and, after a minimum redemption period of 35 days for most homes, sell the property without going to court. You keep whatever is left after the debt and costs, but you lose control of the sale and the price. The only way to stop it is to pay the arrears, penalties and legal fees in full before the sale closes, and a homeowner in arrears is exactly the person a bank won't refinance: income has usually been disrupted, the credit report shows the missed payments, and the bank's process takes longer than the notice period allows.
A private mortgage works on a different clock and a different question. Stonefield looks at the equity in the home and a realistic exit, not at the payment history that got you here. The new mortgage pays out the defaulted lender, the arrears and their costs on closing, the power of sale stops the moment they confirm redemption, and you hold a short private mortgage with a defined term to sell at full value or requalify with a bank. You're matched with a Stonefield-approved broker who runs the file against the deadline from the first day.
The Play: Stop the Sale, Then Decide on Your Own Terms
A power of sale forces a sale at the lender's pace and price. A private refinance does one thing first: it stops that. The new mortgage pays out the arrears, the penalties and the lender's legal costs, and the sale is off. Then you have a 1 to 12 month interest-only term to make the decision that a notice never lets you make calmly: sell at full market value with a proper listing, or stabilize income, let the credit report heal, and refinance back to a bank. Because the private mortgage isn't reported to the bureaus, it doesn't dig the hole deeper while you climb out. The mistake homeowners make is waiting. Every week you hold the notice is a week off the redemption clock, and a file that arrives with 30 days left is far easier to close than one with 8.
How Homeowners End Up Here
Almost every power-of-sale file we see is a temporary problem sitting on top of real equity.
Income Stopped for a While
A job loss, an illness, a business that had a bad year. The payments slipped, the equity didn't.
The Lender Won't Renew
Your mortgage matured, the bank declined the renewal on credit or income, and the balance is now due in full.
Arrears Stacked Up
Property tax, CRA or mortgage arrears that need to be cleared together before anything else can move.
A Private Lender Called the Loan
An existing private or second mortgage went into default and the lender started proceedings.
Separation or Estate
A split or a death left one person carrying a mortgage that was sized for two, and the payments fell behind.
The Sale Date Is Weeks Away
You've already had the notice for a while and the redemption window is closing. Every day counts now.
In every case the question is the same: is there enough equity to pay out the arrears, and is there a realistic exit within the next 12 months?
What You Should Know Before You Call
Equity and Exit, Not Credit
No minimum credit score. Approval turns on the equity available after the payout and a credible exit: a sale at full market value, or a refinance back to a bank once the arrears history is behind you.
What to Send
The power of sale notice or demand letter, your current mortgage statement, the property address, and your most recent Notice of Assessment, which is always requested to confirm no CRA arrears rank ahead of the mortgage.
Speed Is About Lawyers
A term sheet typically within 24 hours, and funding in as little as 48 hours once both sides have legal counsel ready. Retaining a real estate lawyer the same day you call is the single biggest thing you can do.
Frequently Asked Questions
Can a private lender really stop a power of sale in Ontario?
How much time do I have after a Notice of Sale?
My credit is wrecked and my income was interrupted. Does that stop me?
How fast can the refinance close?
What if the arrears push the loan above what the house supports?
What does it cost, and what happens afterwards?
Common Questions
The step-by-step answer, including how the redemption period works.
How Do I Stop a Power of Sale in Ontario Using a Private Lender?Holding a Power of Sale Notice?
Send the notice today. Get matched with a Stonefield-approved broker who lends on your equity, not your payment history, and runs the file against the deadline.