Facing Mortgage Difficulty? You Have More Options Than You Think

A Message to Homeowners — and the Lenders Who Work With Them

Nobody takes out a mortgage expecting to fall behind. Life happens — job loss, illness, divorce, interest rate shock. If you’re struggling to keep up with your payments, I want you to know: you’re not alone, and you have options.

At the same time, I want to speak to the lenders reading this. I understand your position too. You didn’t get into lending to take people’s homes — you got into it to help people access capital. When loans go sideways, it’s stressful for everyone involved.

I’ve spent 26 years in GTA real estate, working with clients across every type of transaction — including many who’ve used private or alternative financing to bridge gaps, consolidate debt, or get into a home when traditional lenders said no. I’ve seen when these loans make sense, and I’ve also seen what happens when circumstances change and payments become unmanageable. That experience shapes how I approach this work today.

Quick answer

• Power of sale is a remedy that lets a lender in Ontario sell a mortgaged property to recover what is owed. Any surplus after the debt and costs are paid belongs to the homeowner.
• A Notice of Sale starts a redemption period, typically 35 to 45 days, during which the mortgage can be brought back into good standing.
• Falling behind does not mean losing the home. Options include a payment arrangement with the lender, refinancing, or selling on your own timeline.
• Selling before power of sale begins usually protects more equity because you control the timing, preparation, and marketing.
• Speaking with your lender and a real estate professional early keeps the widest range of options open.

For Homeowners: What You Need to Know

Power of sale activity is rising. According to Teranet’s Market Insight Report, certain regions like Peel are seeing disproportionately high activity. TRREB data analyzed by Valery Real Estate shows active power of sale listings in the GTA more than doubled between 2023 and 2024.

But here’s what the statistics don’t tell you: most homeowners who end up in power of sale waited too long to act.

If you’re behind on payments — or worried you might be soon — please understand:

• You have a redemption period. Even after a Notice of Sale is issued, you typically have 35-45 days to catch up or find a solution.
• Selling on your terms beats selling under pressure. If you sell before power of sale, you control the timeline, the marketing, and you maximize your equity.
• Your equity is yours. In a power of sale, any surplus after the lender is paid goes back to you. But a rushed sale often means less money in your pocket.
• There’s no shame in asking for help. I’ve helped families navigate these moments with dignity. A difficult chapter doesn’t have to define your story.

If you’re facing hardship, please reach out. A confidential conversation costs nothing, and knowing your options is the first step to taking back control.

For Lenders: A Resource for Your Portfolio

I understand the lender’s perspective — the legal obligations, the timeline pressures, the need to recover capital while meeting fair market value requirements. I also understand that how a distressed sale is handled reflects on your institution.

Here’s how I can help:

Early intervention referrals: If you have borrowers showing signs of distress, referring them to me early can result in a clean sale before formal proceedings begin. This often recovers more value, faster, with less legal expense.

Power of sale listings: When you need to move an asset, I offer:

• Fast listing activation and aggressive, professional marketing
• Pricing strategies designed to meet your FMV obligations
• Responsive communication — I return calls within hours, not days
• Discretion and sensitivity in how the property is presented

Markets I cover: Oakville, Burlington, Milton, Mississauga, Brampton, Toronto, and GTA-wide. Halton and Peel are my home base.

Why I understand your side: Over 26 years, I’ve worked with countless clients who used private and alternative financing. I’ve seen these loans from the borrower’s perspective — the paperwork, the terms, the circumstances that lead to them. That means I understand the sensitivity required, the timeline pressures you face, and why getting fair market value matters for everyone involved.

The Market Reality: Why This Moment Is So Challenging

Here’s the hard truth that both borrowers and lenders are facing right now: this is a buyer’s market, and buyers know it.

With inventory at 15-year highs and prices down across the GTA, buyers have leverage — and many are specifically targeting distressed properties hoping to get a deal. Power of sale listings attract lowball offers. Buyers see the words “power of sale” and assume desperation.

For borrowers, this means your equity can evaporate quickly. A property that might have sold for full value two years ago now sits longer, gets hit with aggressive offers, and often sells below what you need to walk away whole.

For lenders, it’s a different kind of pain. You have a legal obligation to demonstrate you sought fair market value — you can’t just accept the first lowball offer and move on. But in a soft market, even proper marketing and reasonable timelines often result in sales that don’t fully cover the outstanding debt. Equity gets wiped out for the borrower, and lenders still face shortfalls they may never recover.

This is why speed and strategy matter more than ever. The longer a distressed property sits, the more aggressive the offers tend to get. The right pricing, marketing, and negotiation approach can mean the difference between a manageable loss and a disaster for everyone involved.

The Numbers Behind the Pressure

• 80% of power of sale properties in downtown Toronto sold below asking price since January 2022, with an average discount of about 5% from list price (TRREB data via Valery Real Estate)
• Approximately 60% of mortgages are renewing in 2025-2026 at higher rates than borrowers originally locked in (LendToday.ca)
• Ontario’s 90-day mortgage default rate hit 0.27% in Q2 2025 — up 11 basis points year-over-year and 50% higher than pre-pandemic (Equifax Canada via Ira Smith Trustee)
• Private lender defaults are underreported — FSRA confirms these aren’t included in published statistics, meaning the real picture is likely worse (Ira Smith Trustee)
• GTA home prices remain approximately 22% below the February 2022 peak, making refinancing difficult for those who bought at the top (The Globe and Mail)
• CMHC projects peak delinquency of 0.30% by mid-2026 (Royal Canadian Realty)

With the right approach, difficult chapters can still have good outcomes.

Let’s Talk

For homeowners: If you’re worried about your mortgage, call me for a confidential conversation. No judgment, no pressure — just a clear look at your options. Sometimes the best move is to stay and fight. Sometimes it’s to sell on your terms while you have the most choices. I’ll help you figure out which path makes sense for you.

For lenders: I’d welcome the opportunity to be a resource for your portfolio. Whether it’s an early-stage referral or a property that needs to move, I’m here to help you recover value while handling the process professionally

Want to stay informed? I share market updates, insights, and opportunities regularly.

Written by Damir Strk, Broker with RE/MAX Realty Specialists Inc., Brokerage, serving Oakville, Mississauga, Milton, and Burlington for more than 25 years.