Knowledge centre
Do not do it without independent legal advice. FCAC warns that foreclosure-rescue fraud can involve persuading a distressed homeowner to transfer title in exchange for a loan, after which the fraudster may resell or refinance the property.
Yes. CRA can register a lien or charge against property to secure an unpaid tax debt and may seize or force a sale. A registered claim must be addressed in the title, payout and lender-priority analysis.
For most municipal land, a tax-arrears certificate may be registered when arrears remain on January 1 of the third year after the taxes became owing. If the cancellation price is not paid within one year after registration, the municipality may proceed to public sale.
A properly preserved condominium lien has statutory priority over most registered and unregistered encumbrances, subject to the Act’s exceptions. That priority is why a mortgage lender may act quickly when notified of condo arrears.
The condominium corporation has a statutory lien when an owner defaults on common expenses. The lien expires three months after the default unless the corporation registers a certificate of lien within that period.
Sale money is applied in the legal priority order: enforcement expenses, the selling mortgage debt and later entitled claims, with any residue going to the mortgagor. If proceeds are insufficient, the borrower may still face a deficiency claim under the mortgage covenant.
Sometimes arrears and enforceable costs can reinstate the mortgage, but not always. If the debt has matured, been accelerated or reached a later enforcement stage, the lender may require the full redemption amount. Obtain the demand in writing.
Ontario law requires notice to specified people with registered or protected interests, including the mortgagor and certain later interest holders. A second mortgage holder may respond to protect its security, so the borrower should expect every registered lender to become involved.
No. Ontario’s Mortgages Act contains different routes. A contractual power of sale commonly uses the Part III notice framework, while the statutory power in Part II provides for 45 days’ notice. The mortgage, notice and dates must be reviewed—not guessed.
No, the home is not normally sold the day a payment is missed. But a missed payment can be a mortgage default, allowing the lender to start collection and eventually enforcement under the mortgage and Ontario law. Early action preserves more options.