All power of sales in Ontario start with the lender sending a “Notice of Sale Under Mortgage” to the property owner, the notice can be sent once the property has been in default for longer than 15 days. The property owner then has about 30 days to respond to the notice, if the property owner does not respond within 30 days the lender can send out a “Statement of Claim”, this will outline how much money is required to bring the mortgage into good standing or to pay or the claim.
The Statement of Claim begins a mortgage action1 under Ontario’s Rules of Civil Procedure. A property owner served in Ontario has 20 days to deliver a Statement of Defence2, and filing a Notice of Intent to Defend3 can provide additional time to respond. If no defence is delivered in time, the owner can be noted in default4, which allows the lender to seek default judgment.
If the property owner does not pay the “Statement of Claim5” within 30 days a Notice of Possession can be granted by the courts. After an additional 30 days the lender can ask the local sheriff to issue a “Notice of Eviction”. The sheriff usually evicts all occupants of the property within a week or two and gives the lender possession of the property. To stop an eviction from your home can be difficult. The lender has the option to accept payment from the borrower or to continue with the eviction.
Notice of Sale vs. Statement of Claim vs. Writ of Possession
These three documents mark the escalating stages of the Ontario power of sale process. The earlier the document you have received, the more options you still have.
| Aspect | Step 1 · Early Warning Notice of Sale | Step 2 · Court Action Statement of Claim | Step 3 · Final Enforcement Writ of Possession |
|---|---|---|---|
| What it is | A legal notice from your lender warning that the power of sale process has started. | A court document claiming the mortgage debt and possession of the property. | A court order that lets the sheriff remove occupants and hand the property to the lender. |
| Who issues it | The lender, usually through a lawyer, sent by registered mail. | The lender’s lawyer, issued through the Ontario Superior Court of Justice. | The court, after the lender obtains judgment on its Statement of Claim. |
| When it arrives | At least 15 days after your mortgage goes into default — the first step of the process. | After the Notice of Sale period passes without payment. | After judgment — the sheriff schedules the eviction once the writ is received. |
| Your time to respond | About 30 days to bring the mortgage back into good standing. | About 30 days to pay the claim, or 20 days to file a Statement of Defence. | Very little time — the sheriff usually acts within a week or two. |
| What you can still do | Most options are still open: pay the arrears, refinance, negotiate with the lender, or sell on your own terms. | Options are narrowing: pay the claim, refinance quickly, or file a defence — acting fast matters. | Urgent: only immediate payment, refinancing, or emergency legal action can stop the eviction. |
References
- Rules of Civil Procedure, R.R.O. 1990, Reg. 194, Rule 64 — mortgage actions ↩︎
- Rules of Civil Procedure, R.R.O. 1990, Reg. 194, Rule 18.01 — time for delivering a Statement of Defence ↩︎
- Rules of Civil Procedure, R.R.O. 1990, Reg. 194, Rule 18.02 — Notice of Intent to Defend and the additional time it can provide ↩︎
- Rules of Civil Procedure, R.R.O. 1990, Reg. 194, Rule 19.01 — being noted in default ↩︎
- Rules of Civil Procedure, R.R.O. 1990, Reg. 194, Rule 14.03 — an action is generally commenced by a Statement of Claim ↩︎