Power of Sale vs Foreclosure in Ontario: Key Differences

Why Ontario buyers usually see power of sale

In Ontario, power of sale is typically the primary remedy lenders use after mortgage default. Judicial foreclosure is less common in day-to-day residential listings.

As a buyer, this means most distressed opportunities are marketed as power of sale listings rather than U.S.-style foreclosures.

Pricing, negotiation, and condition risk

Lenders focus on recovering outstanding debt and reducing carrying costs. They may price aggressively, but they also follow internal approval processes.

Many properties are sold as-is. You should budget for repairs and complete due diligence on title, financing, and property condition before removing conditions.

How to reduce risk when buying distressed inventory

Use a disciplined buy box: neighborhood, max budget, renovation ceiling, and exit strategy. Avoid emotional bidding and evaluate each property as an investment decision.

Partner with a local team familiar with Durham lender sales so you can move quickly without sacrificing risk controls.

Frequently Asked Questions

Is foreclosure the same as power of sale in Ontario?

No. They are different legal remedies. Most distressed mortgage resale inventory in Ontario is sold through power of sale.

Do lender-owned homes come with warranties?

Usually not. Many are sold in current condition, so inspections and legal review are important.

Which is better for investors?

Either can work, but success depends on your due diligence, renovation costs, and purchase discipline.