What Is a Power of Sale in Ontario?

In Ontario, a power of sale occurs when a lender sells a property after the homeowner defaults on their mortgage. Unlike a foreclosure (which transfers ownership to the lender), a power of sale keeps the title with the homeowner—but the lender has the right to sell it to recover funds.

For buyers, this usually means:

• Faster closing timelines
• Opportunity to buy below market value
• Properties often sold “as-is,” with less flexibility for repairs or conditions

Benefits of Buying a Foreclosure or Power of Sale Home

• Potential savings on purchase price
• Opportunity to build equity through renovation
• Access to neighbourhoods otherwise outside your budget
• Ideal for investors, flippers, and first-time buyers with vision