Stop power of sale in Ontario, or foreclosure in BC and Alberta (2026): the timelines, and what to do today
How many days you have in each province, what to send today, and what a rescue mortgage must cover.
Written and reviewed by Asim Ali, Mortgage BrokerUpdated 5 November 2026
Licensed: BCFSA (BC) · RECA (Alberta) · FSRA (Ontario) · check our licences
You can almost always stop an enforcement if you act inside the window and the equity is there. Ontario: a lender can serve a Notice of Sale after 15 days in default and you have 35 days to redeem. BC: the lender must petition the court; you have 21 days to respond, and the Order Nisi usually gives a six-month redemption period. Alberta: a Statement of Claim gives you 20 days to defend and the court usually sets a 3-6 month redemption period. A private "rescue" first mortgage pays the arrears, the lender's legal costs and the balance. The total must fit under about 75% of appraised value. It funds in 5-12 days. The sooner you call, the less you pay in legal costs.
Send these three things today, by photo or PDF, and we tell you the same day whether a rescue mortgage is realistic: (1) the notice, petition or claim you received, (2) your most recent mortgage statement, (3) the address and a few photos of the property.
The three provinces side by side
| Ontario: power of sale | BC: judicial foreclosure | Alberta: judicial foreclosure | |
|---|---|---|---|
| Court needed? | No | Yes, BC Supreme Court | Yes, Court of King's Bench |
| First formal step | Notice of Sale after 15 days in default | Petition served | Statement of Claim served |
| Your response deadline | 35 days to pay in full | 21 days to file a response | 20 days to file a defence or demand of notice |
| Redemption period | The 35 days | Usually 6 months from Order Nisi; shorter with thin equity | Usually 3-6 months; shorter with thin equity |
| Time to a forced sale | As little as 2-3 months | 6-12 months | 10-18 months |
| Shortfall after sale | Lender can sue you | Lender can sue you | Often barred on conventional owner-occupied mortgages; not for insured, corporate or most private mortgages |
| Legal costs added | $2,500-7,000, rising weekly once listed | $3,000-8,000 through Order Nisi | $3,000-8,000 through the order |
What a rescue mortgage must cover
The private lender pays out the enforcing lender in full. The new mortgage has to cover the balance, the arrears, penalty interest, the lender's legal costs, property tax arrears (which rank ahead of everyone), the new lender's fee, our fee, your legal costs and a small buffer. A Hamilton example:
| Item | Amount |
|---|---|
| Existing mortgage balance | $512,000 |
| Four months' arrears and penalty interest | $14,800 |
| Enforcing lender's legal costs | $4,800 |
| Property tax arrears | $3,900 |
| New lender fee (2%) and broker fee (1%) | $16,800 |
| Legal, appraisal, buffer | $4,700 |
| New private first mortgage | $557,000 |
| Appraised value | $780,000 |
| Loan-to-value | 71.4%: placeable |
| Monthly payment at 10.49%, interest-only | $4,869 |
At 71% loan-to-value this file is placeable in Hamilton. The same numbers on a $700,000 house would be 80% and would not be. Then the honest advice is a sale on your own terms during the redemption period, not a lender's sale after it. A sale you control nets you more almost every time.
Day by day, once you call
Triage
Notice, statement, photos. We confirm the deadline, estimate value and tell you if the numbers fit.
Payout figure
We ask the enforcing lender's lawyer for the payout statement. It fixes the number and the costs.
Commitment
Lender commitment and our fee sheet. Backup lender lined up on tight files.
Appraisal and your lawyer
Rush appraisal. You pick a lawyer for independent advice. Disclosure two business days before signing.
Funding and discharge
Lender's lawyer pays the enforcing lender. The action is discontinued or the notice withdrawn.
If the numbers do not fit
- Sell on your own timeline. In BC and Alberta the redemption period is long enough to list properly. In Ontario a lender will often agree not to list for 30-60 days if a real listing is already in place.
- A smaller second to cure the arrears. If only the arrears and costs are the problem and the first lender will reinstate, a $30,000-60,000 private second brings the mortgage current. Many lenders reinstate once. Ask before the notice period runs out.
- Talk to a Licensed Insolvency Trustee. A consumer proposal stops unsecured creditors but not a secured lender. It can free up cash flow so the mortgage can be caught up.
- Legal help. Legal Aid BC publishes "Can't pay your mortgage?". In Ontario and Alberta a real-estate lawyer's hour is worth paying for before the deadline, not after.
What if you are behind on mortgage payments but no notice has come yet?
Call your lender and us now, before a demand letter arrives. Once a lender starts enforcement, its legal costs are added to what you owe, and each week makes a rescue mortgage more expensive. Falling behind is becoming more common. In August 2026, 0.30% of Canadian bank mortgages were three or more months behind, up from 0.24% a year earlier. Ontario rose fastest:
Canadian Bankers Association, mortgages 90+ days in arrears, August 2026. CMHC expects Ontario arrears to keep rising into mid-2027.
If you are one or two payments behind, the cheapest fixes come first: a payment arrangement with your lender, a longer amortization at renewal, or a B-lender refinance. A private mortgage is for when those are closed and the deadline is real.
What happens if you don't pay your property taxes?
Your mortgage lender can pay them and add the cost to your mortgage. Many standard mortgage terms allow this, and some lenders then treat it as a default. If nobody pays, the municipality can sell the home at a tax sale. Each province works differently:
| BC | Ontario | Alberta | |
|---|---|---|---|
| When it starts | Taxes unpaid at the end of the second year become "delinquent" | A tax arrears certificate can go on title after about two years of arrears | A tax recovery notice goes on title after more than a year of arrears |
| The sale | Annual tax sale, last Monday in September (Vancouver: November) | Public auction or tender if not paid within one year of the certificate | Public auction, usually the year after the notice |
| Getting it back | One year after the tax sale to redeem | Pay the full "cancellation price" within the year | Pay before the parcel is declared sold. No redemption year after |
| Interest | 7.45% in 2026 (prime + 3%) | Up to 1.25% a month | Set by each municipality |
A private mortgage or second can pay tax arrears at funding, through the lawyer, so the notice comes off title. In Alberta, act before the auction: a buyer at a tax sale takes the land free of most mortgages.
Province pages
BC: petition, Order Nisi, redemption and court-ordered sales · Alberta: Statement of Claim, redemption order, the non-recourse rule · Ontario: Notice of Sale, the 35 days and the Mortgages Act.
Foreclosure and power of sale questions
What is the power of sale process in Ontario?
After 15 days in default the lender serves a Notice of Sale. You have 35 days to pay the arrears, interest and costs. After that the lender can list and sell the property without a court order, keep what it is owed plus costs, and pay you any surplus. If there is a shortfall the lender can sue you for it.
How fast can a power of sale be stopped in Ontario?
Inside the 35-day notice period if a payout funds before it expires, and afterward until the lender accepts a firm offer. A rescue mortgage funds in 6-12 days, so calling in the first two weeks is the difference between an easy file and a race.
Can I refinance or sell during the redemption period in BC or Alberta?
Yes. That is what the period is for. You can pay the amount in the court order from a new mortgage or a sale any time before it expires. The court can shorten the period if there is little equity. Act early.
The lender says it is too late. Is it?
Rarely, until a firm sale is accepted (Ontario) or the court has approved a sale (BC and Alberta). Lenders' lawyers are not obliged to tell you your options. Get the payout statement and call.
Will the private lender foreclose on me next year?
Only if you miss payments. The 12-month term exists to give you time to refinance or sell with equity intact. The plan for that is written before funding, and we check in at month nine. The exit plan.
Sources. Mortgages Act (Ontario) ss.24, 31, 32, 42 · BC Supreme Court foreclosure procedure and Legal Aid BC · Court of King's Bench of Alberta foreclosure practice · Hoyes Michalos, power of sale vs foreclosure · broker power-of-sale index, Ontario, October 2026 · Business Examiner, BC court-ordered listings, 2026 · CBA mortgage arrears, August 2026 · CMHC, 27 October 2026 · BC municipal tax sales · Ontario Municipal Act, 2001, Part XI · Alberta Municipal Government Act.
Talk it through with a licensed broker before you decide
Tell us what is going on in a few lines. We call you back the same day with what lenders will say, what it costs in dollars, and how you get back to a bank. If private is the wrong tool, we say so.
- Your full cost, in dollars, before you commit
- The lender named on your commitment letter
- A written plan to exit within 12-24 months
Asim Ali, Mortgage BrokerSurrey office · BC, Alberta and Ontario
Tell us three things. A licensed broker calls you today.
No credit check. No ID. No date of birth. We ask what a lender decides on: the property, the equity and the deadline.
- 1Same-day call from Asim Ali or a licensed colleague
- 2A range for rate, fees and APR on the call
- 3Written commitment in 1-2 business days if you go ahead
- 4Nothing to pay until the mortgage funds
Asim Ali, Mortgage Broker
Licensed in BC, Alberta and Ontario · (604) 591-3590