What is a power of sale?

Power of Sale is a clause written into the Mortgage Commitment document that allows the lender to sell the property if the Mortgage payments are not met.

If a borrower, in Mortgage arrears, defaults on his/her Mortgage payment, the lender sends the borrower a Notice of Default in the mail. It is typically sent 15 days after the Mortgage default has occurred. Once the notice of default is received, the borrower has up to 30 days to respond to the notice and pay the lender the full balance owing in order to remove themselves from the Power of Sale process.

If the default payments are not remedied after the 30 day period, the lender issues a statement of claim to all parties that have any investment in the property, including the homeowner and any other Mortgage lenders/Banks.

How to stop power of sale?

In order to stop the Power of Sale process, it is advisable to engage the services of an expert Mortgage Broker. To help Stop Power of Sale or Foreclosure, the Mortgage Broker effectively negotiates with lenders/Banks and lawyers in order to reach a resolution on the borrower’s behalf.

Following a specific timeline of events, the Mortgage Broker presents Solutions to the lender and their lawyer in order to resolve the matter. The lenders generally cooperate with the Mortgage Brokers and work together to avoid further costs associated by the lender and to Stop the Power of Sale process.

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In a Power of Sale, the homeowner under the Power of Sale process still has the opportunity to save their property, up until it’s sold. Depending on the area in which the property is located, the homeowner may be able to use their own Real Estate Agent in order to sell the property.

After a Power of Sale, the lenders are paid off in full and if there are any funds remaining from the sale proceeds, they would go directly to the homeowner. If there is a shortfall of funds after the Power of Sale process, it’s the responsibility of the homeowner to pay that amount to the lender.


15 days after Mortgage default, a notice is given by the lender to the borrower. This notice is called a Notice of Sale under a Mortgage. Once the notice is received by the homeowner, they have 30 calendar days to remedy the Mortgage default and bring the Mortgage payments up to date. If the borrower fails to remedy the Mortgage default after 30 days, the lender files a statement of claim with the Court. This statement is sent to all the people who have an interest in the property.


A statement of claim is a legal claim filed by the lender against the borrower to initiate a lawsuit against them as a part of the Power of Sale process. It is usually filed with a local small claims Court or the Superior Court of Canada. It is filed so that the Courts can pass judgement on the default of the Mortgage and rule in favour of the lender to take possession of the property.

Hamilton, Ontario

I had a very pleasant experience working with Shawn Sef at Equity Mainly Matters Loans. We contacted Shawn looking for help in order to pay off our high interest credit card debts. Shawn made the process very easy for us by explaining the Mortgage loan details for the Debt Consolidation Mortgage Solution which he recommended for us. Shawn was actively present every step of the way and was very knowledgeable. I will definitely recommend Shawn to my peers due to his knowledge, professionalism and expertise.

Brampton, Ontario

Shawn is extremely passionate about his job. Shawn always demonstrates a positive and professional attitude. His easy going and friendly personality always makes the experience of working with him fun and stress free. Shawn made the entire Mortgage loan process very simple for me to which I’m thankful for. Shawn is very proactive and updates me on a regular basis in regards to my file.

Markham, Ontario

Me and my husband had never worked with a Mortgage Broker before. I needed to consolidate all of my debts. I was paying high monthly interest fees to my creditors and my bank informed me that I couldn’t get approved with them because of my low credit score. Shawn did an excellent job by helping me consolidate and pay off all of my various high interest debts. I’m now debt free. My credit score has improved and I don’t owe creditors any monthly high interest payments. We went from paying $1,650 month towards our credit card debts and loans, to now paying only $520 month which helped us build up a good savings. Shawn rescued us from our creditors and helped us save an extensive amount of money for our families future.


As a first time home buyer, we required a Mortgage broker who was willing to be very patient with us and to explain every detail of the Mortgage loan process and provide us with as much information as possible. Shawn informed us of the exact required down payment amount (based on the types of lenders that we qualified for), fees, closing costs, Land Transfer tax etc. Shawn was very good in providing us with accurate rates, figures and calculations which we realized we could afford the monthly Mortgage payments and make the Home Purchase work. One other important factor was that Shawn kept on top of our file by updating the progress every step of the way which was very important to us. Shawn is very proactive which we appreciated!

Toronto, Ontario

Shawn helped our family obtain a low rate 2nd Mortgage from a Private Lender. Banks turned us down as we failed to meet their requirements for the stress test, income and credit criteria. However, Shawn was able to find various Private Lenders/Investors that were interested in making us an offer and we ended up taking a great offer for a 2nd Mortgage which made the most sense for us. We will definitely refer our family and friends to Shawn in the near future. I can’t say how much I appreciate all the time and effort Shawn put into our file.

Mississauga, Ontario

Shawn demonstrates excellent customer service skills. He’s always very quick to respond to my emails and calls. Shawn helped me get approved twice in the past year alone and I hope to work with him again in the near future. Shawn was very friendly, attentive and dedicated his time and effort by providing me with solid knowledge, expertise and advice which in return helped the process of purchasing my first home very easy and stress free. Shawn even followed up on my behalf with my lawyer in order to finalize all the details. I would highly recommend his services.

Ottawa, Ontario

From the first time I spoke with Shawn Sef, I felt comfortable and at ease which was due to his calm and patient personality and attitude. He was also very understanding and caring to our current situation and needs by providing the best course of action for us to take which made the most sense for our family. Shawn is very knowledgeable within the mortgage field and delivered exactly what he said he would. He even provided us with accurate closing/funding dates from day one. I would definitely recommend Shawn Sef to any borrower looking for a good
Mortgage broker.

Toronto, Ontario

Shawn had helped my wife and I obtain a 2nd Mortgage from a Private Lender last year. We used the majority of the Mortgage loan proceeds to help renovate/upgrade our home. Once the refurbishments had concluded, we ordered a new appraisal and noticed that our house value had increased substantially. The following year, Shawn helped us refinance both our Institutional and Private Mortgages into a new low rate, 1st Mortgage with an A Lender (Bank) which is going to help us save an extensive amount of money in monthly payments moving forward. I’m very thankful for Shawn’s knowledge, skills and expertise within the mortgage industry which ended up helping us save thousands of dollars.