Short answer
Be cautious when someone guarantees they can stop enforcement, asks you to transfer title, demands large upfront fees, discourages your own lawyer or rushes you into a sale-and-leaseback you do not understand. Get an independent mortgage and legal review before signing.
The client problem behind the question
A homeowner in arrears is frightened and accepts the first promise to “save the home,” even though the contract transfers control or equity to someone else.
What the official guidance establishes
Canadian fraud authorities warn that urgency, guaranteed outcomes, unusual payments and requests for sensitive information are common scam signals. Ontario property transfers and mortgages create binding legal rights that require independent advice.
Where the answer can change
A legitimate private mortgage, power of sale negotiation or sale-and-leaseback is not automatically a scam, but each carries cost and risk. The homeowner needs the net proceeds, payment, term, default clauses and realistic exit in writing.
A practical Ontario example
Illustration only: An owner owes $620,000 on a $900,000 home and signs a rushed agreement that pays arrears but transfers title at a steep discount. A structured second mortgage or negotiated sale might have preserved more equity.
What to do before committing
Ask the existing lender for a current payout and deadlines. Obtain independent legal advice, a second mortgage opinion and a market-value estimate. Do not sign away title or pay cash to stop an unnamed enforcement step.
Questions Rajiv would ask
- What deadline, condition or closing problem must be solved?
- Which facts are confirmed by original documents and which are still assumptions?
- Which law, insurer rule or lender policy applies to this exact transaction?
- What happens to the cash requirement and monthly payment if the first option fails?
- What is the practical route back to lower-cost financing, if temporary financing is used?
Rajiv’s broker perspective
A difficult mortgage can be solved only with accurate information. I would rather explain a real income gap, credit issue or closing shortfall to the right lender than submit a polished story that the documents do not support. The legitimate options may include another A policy, alternative/B lending, an MIC or private bridge, a larger down payment, a delayed closing or a lower purchase price.
Related: Mortgage declined? Start here · Mortgage Knowledge Centre · Real Estate Centre · Updates & Rules Centre
Would a second opinion help before you commit?
Send Rajiv the property, deadline, financing concern and the documents already available. He can identify the missing questions, compare practical mortgage routes and explain the next step in plain language.