Power of Sale is one of the few ways to buy below market in the GTA — but only if you understand what you're walking into. I broker these deals on both sides, so I'll give you the real picture, not the hype.
What "Power of Sale" actually means
In Ontario, when a homeowner falls far enough behind on their mortgage, the lender doesn't take ownership of the home (that's foreclosure, which is rare here). Instead, the mortgage gives the lender the power to sell the property to recover what they're owed. The lender lists it, sells it, takes back the outstanding balance plus costs — and any surplus legally belongs to the original owner.
That last point matters: because the lender only wants to recover the debt (not profit), these homes are often priced to sell quickly rather than for top dollar. That's where the opportunity comes from.
Are they really cheaper? The honest answer
Sometimes — but forget the "50% off" stories. In a normal GTA market, a realistic Power of Sale discount is roughly 5%–15% below comparable sales, occasionally more when a property needs work or the lender wants a fast close. The discount usually reflects two things:
- Condition. Many are sold by owners who couldn't afford upkeep — expect deferred maintenance.
- Speed and certainty. Lenders favour clean, firm offers and quick closings, and they price for that.
My job is to tell you the real number on each one — what it's actually worth after repairs — so you don't overpay for a "deal."
The risks nobody mentions
- Sold "as-is, where-is." The lender never lived there, so you typically get no representations or warranties about the home's condition.
- The lender's contract favours the lender. Their schedule replaces the standard one, deposits can be strict, and conditions are limited. Your lawyer needs to review it before you sign.
- Possible occupants. Sometimes the previous owner or a tenant is still in the home.
- Limited inspection access. You may have less time and access than a normal purchase.
You still need financing ready
A Power of Sale is still a normal purchase in the eyes of your lender. Have your financing and deposit lined up before you offer — and remember that a property's condition can affect your mortgage appraisal. Get pre-approved first; the good ones move fast.
How to actually get these deals
The hardest part isn't buying — it's finding them early. Power of Sale and bank-sale listings come and go quickly, and the best ones are often gone before the public notices. I keep a running list across Mississauga, Brampton, Oakville, Milton, Burlington, Toronto and Hamilton, with my honest read on each one.
Register for the weekly list below and I'll send what's available — and call you the moment one fits what you're looking for.