Contractual power of sale: minimum 15-day default before notice
Under section 32 of the Mortgages Act, where a mortgage contains a power of sale clause, notice cannot be given until default has continued for at least 15 days.
The same section requires that the sale not be made until at least 35 days after the notice is given. That is the legal minimum, not a promise of immediate eviction or immediate closing.
Statutory power of sale: different trigger, longer notice
Where the mortgage relies on statutory power (section 24 framework), the Act provides a different path: power may arise after three months of default, and section 26 requires 45 days notice before sale.
Most modern institutional mortgages include contractual power of sale language, but lawyers should still analyze which section governs the specific file.
Practical timeline is usually longer than legal minimum
Even after the notice periods, lenders still need listing preparation, marketing, offer review, title work, and closing logistics. Occupancy disputes can add further delay.
The legal message for owners is urgent but not fatalistic: the right move is early legal and brokerage intervention before the statutory clocks become irreversible.
Action Checklist
- Read the notice date and expiry date carefully.
- Request an exact payout/arrears statement immediately.
- Confirm whether the mortgage terms triggered acceleration.
- Get legal advice before the sale process advances.
Frequently Asked Questions
Can one missed payment trigger power of sale?
Default can start quickly, but statutory notice and sale timing still apply. The legal minimum periods in the Mortgages Act must be respected.
Does the borrower always have to pay the entire mortgage balance to stop a sale?
Not always. It depends on the mortgage terms, acceleration language, and what the notice demands. Section 22 relief can be relevant before sale.
Is a sub-90-day sale possible?
Possible in some files where timelines are tight and uncontested, but many files run longer due to practical and legal steps.
Sources
Legal Notice
This publication is general information only and is not legal advice. Obtain Ontario legal advice for your specific mortgage, tenancy, and litigation facts.