What Is Power of Sale in Ontario? Complete Durham Buyer Guide
A practical breakdown of the Ontario power of sale process, timelines, and buyer due diligence.
Updated: 2026-02-20
What power of sale means in Ontario
A power of sale property is sold by a lender after a borrower defaults on mortgage payments. In Ontario, this process is more common than court foreclosure and is governed by mortgage law and the listing agreement process.
For buyers, these properties are often listed on MLS and sold through regular real estate channels, but with stricter lender terms and less flexibility around repairs.
How the buying process differs from a normal resale
The lender is usually selling as-is, where-is. That means you should expect fewer representations and warranties compared to a standard owner sale.
Offer strategy matters: include financing, inspection, and legal review conditions when possible, and work with professionals who understand lender schedules and documentation.
What to check before you submit an offer
Review comparable sales, property condition, title matters, and renovation risk. Some homes may need immediate capital improvements, so estimate total carrying and rehab costs before you bid.
Speed matters in competitive Durham submarkets. Be mortgage-ready and decide your maximum purchase price before negotiations begin.
Frequently Asked Questions
Are power of sale homes always cheaper?
Not always. Some list below market, but final value depends on condition, local demand, and offer competition.
Can I still do a home inspection?
Often yes, but it depends on the offer structure and lender response. You should attempt to include an inspection condition whenever possible.
How fast can these deals close?
Closings can be quicker than standard transactions, especially when lender paperwork and financing are prepared in advance.