Want me to personally review your mortgage situation? Drop your info below and I'll call you within a few hours. No pressure, just expert guidance.
Receiving a power of sale notice is one of the most stressful experiences a homeowner can face. But it is not the end. In Ontario, you have legal rights and real options to stop the process and keep your home — even if you are already behind on payments and your lender has started proceedings.
Power of sale is the legal process by which a mortgage lender can sell your home to recover the money owed to them when you default on your mortgage payments. Unlike foreclosure (which is more common in other provinces), power of sale in Ontario does not require a court order. The lender can proceed after giving you proper notice, which typically includes a demand letter followed by a Notice of Sale, after which you have a redemption period of at least 35 days.
Understanding the timeline is critical because time is your most valuable asset in this situation. After you miss payments, the lender will typically wait 15 to 90 days before sending a demand letter requiring you to bring the mortgage current. If you do not respond, they issue a Notice of Sale Under Mortgage, which gives you 35 days to pay the full amount owing (not just the arrears, but the entire mortgage balance). After the 35-day redemption period, the lender can list and sell your property.
The total timeline from first missed payment to actual sale is typically 4 to 8 months, though it can vary. The key point is that at almost every stage, you still have options.
Option 1: Bring your mortgage current. If you can catch up on missed payments plus legal costs, the power of sale process stops immediately. This is the simplest solution but requires having access to the funds.
Option 2: Refinance with a new lender. This is the most common solution we arrange. A new mortgage pays off the existing lender in full, stopping the power of sale. The new mortgage covers the outstanding balance, arrears, and legal costs. B-lenders and private lenders specialize in these situations and can often close within 2 to 3 weeks.
Option 3: Second mortgage for arrears. If your first mortgage has a good rate, a second mortgage can provide the funds to pay the arrears and legal costs without disturbing your existing mortgage. Private lenders can fund second mortgages in as little as 48 hours in urgent situations.
Option 4: Sell the property yourself. If keeping the home is not feasible, selling it yourself will almost always get a better price than a power of sale. You control the process, hire your own realtor, and retain any equity above the mortgage balance. A lender selling under power of sale is not required to get market value — only a reasonable price.
Private lenders are the most common solution for stopping power of sale because they can move fast and they base their decisions on your home equity rather than your credit score or income documentation. Here is how the process works: we assess your property value and equity position, find a private lender willing to provide new financing or a second mortgage, the lender conducts a property appraisal, legal documents are prepared and signed, and funds are released to pay off the arrears or the full existing mortgage.
In urgent cases, this entire process can be completed in 1 to 3 weeks. The private mortgage is a short-term solution, typically 1 to 2 years, giving you time to stabilize your situation and transition to better financing.
Even after the redemption period expires and the property is listed, you may still have options. Until the sale closes, it is sometimes possible to arrange financing to stop the process. However, the further along the process is, the more difficult and expensive it becomes. This is why acting immediately when you receive any notice from your lender is critical.
If you have received a demand letter, a notice of sale, or are behind on mortgage payments, time is your most important resource. Contact Mortgagefy immediately for a free emergency assessment. We have helped hundreds of Ontario homeowners stop power of sale and keep their homes. Call +1 (647) 637-6052 now — we respond to power of sale inquiries within hours, not days.
If you are searching for a mortgage broker near you in the Greater Toronto Area, you want someone who knows the local market, has access to the right lenders, and will actually fight for your best rate. Here is why thousands of homeowners across Markham, Toronto, Scarborough, Mississauga, Brampton, and the surrounding areas trust Mortgagefy with their mortgage needs.
A local mortgage broker understands your market. We know that property values in Markham differ from those in Hamilton. We know which lenders are actively lending in specific GTA neighbourhoods. And we understand the unique challenges that GTA homeowners face — from high property costs to competitive bidding situations to the realities of buying in one of the most expensive housing markets in Canada.
Unlike a bank mortgage specialist who can only offer that one bank’s products, we shop your application across over 100 lenders — including major banks, credit unions, B-lenders, and private lenders. This means you get the best rate and terms available, not just the best one bank can offer.
Our office is located at 55 Renfrew Dr, Suite 201, Markham, ON, and we serve clients across the entire Greater Toronto Area and beyond. Our clients come from Toronto and the downtown core, North York, Scarborough, Etobicoke, Markham, Richmond Hill, Vaughan, Mississauga, Brampton, Oakville, Burlington, Ajax, Pickering, Whitby, Oshawa, Newmarket, Aurora, and all surrounding communities. We also serve clients across Ontario and Canada through virtual consultations.
Access to 100+ lenders: We are not limited to one bank’s products. Our network includes every major bank, leading credit unions, regulated B-lenders, and vetted private lenders across Canada.
Specialization in alternative lending: Many of our clients come to us after being declined by their bank. We specialize in finding solutions for self-employed borrowers, new Canadians, bad credit situations, debt consolidation, and urgent equity needs.
No cost to you: Our services are free to borrowers. We are compensated by the lender when your mortgage funds — you pay nothing extra for having a broker shop 100+ lenders on your behalf.
FSRA licensed: We are a fully licensed mortgage brokerage regulated by the Financial Services Regulatory Authority of Ontario. Your interests are legally protected.
Getting started takes just a few minutes. You can fill out our online assessment form to tell us about your situation and goals. One of our licensed agents will review your file and contact you within 2 business hours with your options. From there, we handle the lender shopping, paperwork, and follow-up — so you can focus on what matters to you.
Whether you are buying your first home, renewing your mortgage, consolidating debt, or dealing with a challenging credit situation — contact us today or call +1 (647) 637-6052 to speak with a licensed mortgage agent near you.
One of the most common questions we hear is “can I get a mortgage with bad credit?” The short answer is yes — but your options depend on how low your score is, how much equity or down payment you have, and which type of lender you work with. Here is an honest breakdown of what to expect at different credit score levels in Canada.
In Canada, credit scores range from 300 to 900. For mortgage purposes, lenders generally group borrowers into three tiers. Scores of 680 and above qualify for prime A-lender rates from major banks and credit unions. Scores between 500 and 679 fall into B-lender territory, where alternative lenders offer slightly higher rates but more flexible approval criteria. Scores below 500 typically require private lender financing, which is equity-based rather than income or credit-based.
Credit score 600-679: You have solid options. Several B-lenders specialize in this range and offer rates that are only 0.5% to 1.5% above prime bank rates. You will need to demonstrate stable income and your debt ratios need to be reasonable, but approval is very achievable. Many clients in this range are surprised at how competitive their rate can be.
Credit score 500-599: B-lender options still exist, though they become more selective. Private lenders also serve this range well, especially if you have home equity or a larger down payment (20% or more). The focus shifts from your credit history to your ability to make payments and the security of the property.
Credit score below 500: Private lenders are your primary option. These lenders approve based on your home equity and property value rather than your credit score. If you own a home with equity, you can likely access financing regardless of your score. Rates are higher (typically 7% to 12%) but these are designed as short-term solutions.
Lenders evaluate the reason behind credit issues, not just the number. A bankruptcy or consumer proposal tells a different story than a few late payments during a temporary job loss. Medical debt, divorce-related credit damage, and identity theft are all situations lenders see regularly and have programs to accommodate. Being upfront about what happened helps us match you with the right lender.
When you apply directly to a bank with bad credit, you get a yes or no answer from one lender. When you work with a mortgage broker, your application is assessed against the criteria of over 100 lenders. Each lender has different thresholds, different weighting of credit factors, and different programs. A broker knows which lender is most likely to approve your specific situation.
Importantly, a broker submits your application strategically — we do not shotgun it to dozens of lenders, which would further damage your credit. We identify the best 1 to 2 options and submit targeted applications.
Getting a mortgage with bad credit is not the end of the story — it is the beginning of your recovery plan. Making consistent mortgage payments is one of the most powerful ways to rebuild your credit score. Many of our clients who start with a B-lender or private mortgage transition to prime rates within 2 to 3 years simply by making payments on time and following a basic credit improvement plan.
Do not assume you cannot qualify. At Mortgagefy, we have helped thousands of Canadians with imperfect credit find mortgage solutions. Request your free, no-obligation assessment and find out what is actually possible for your situation.
Being self-employed in Canada comes with many advantages — flexibility, independence, and the ability to write off business expenses. But that last one creates an ironic problem when it comes to getting a mortgage: the same deductions that save you taxes also reduce your reported income on paper, making it harder to qualify with traditional banks.
If you have been turned down or told you do not earn enough on paper, you are not alone. And you are not out of options.
Major banks use your Notice of Assessment (NOA) and T1 General tax returns to verify income. If you are a smart business owner, you are likely deducting vehicle expenses, home office costs, meals, supplies, and other legitimate business expenses. The result is that your taxable income — the number the bank sees — may be significantly lower than what you actually earn and take home.
For example, a contractor who grosses $150,000 per year might show only $65,000 after deductions. A bank underwriting to that $65,000 figure may only approve a mortgage of $300,000 to $350,000, even though the borrower comfortably manages expenses based on their true $150,000 gross revenue.
This is where alternative lenders and specialized programs make the difference. Several options exist for self-employed Canadians:
Stated income programs: Some B-lenders allow you to state your income rather than prove it through tax returns. You still need to demonstrate that the income is reasonable for your industry and occupation, but you are not penalized for aggressive tax deductions.
Bank statement programs: Instead of tax returns, some lenders review 6 to 12 months of business bank statements to verify cash flow. If money is consistently flowing in, that serves as proof of income.
Add-back programs: Certain lenders will add back specific deductions — like depreciation, one-time expenses, or home office costs — to your declared income, giving you a higher qualifying income without changing your tax filing.
Gross revenue qualification: Some private and alternative lenders look at gross business revenue rather than net income, especially for borrowers with strong equity positions.
The documentation requirements vary by lender type. For A-lenders with BFS (Business for Self) programs, you typically need 2 years of T1 Generals and NOAs, a business license or articles of incorporation, and 6 months of business bank statements. For B-lenders with stated income, you may need only 1 year of tax returns, proof of business existence (business license, GST registration, or contracts), and 3 to 6 months of bank statements. For private lenders, the focus shifts almost entirely to your property value and equity, with minimal income documentation required.
Most A-lenders require a minimum of 2 years of self-employment history. B-lenders are often flexible at 1 year. If you have recently started your business, private lender options may still be available based on your equity and overall financial picture. Having prior experience in the same industry, even as an employee, can also help your application.
If you qualify through an A-lender BFS program, your rate will be similar to any other prime borrower. B-lender rates are typically 0.5% to 1.5% higher than prime rates, which is still significantly better than any unsecured borrowing. Private lender rates are higher (typically 7% to 12%) but are designed as short-term solutions while you build the documentation needed to move to better rates at renewal.
For self-employed borrowers who start with a B-lender or private mortgage, we create a roadmap to transition to prime rates. This might include adjusting your tax strategy to show higher income for 1 to 2 years, building a longer track record of business bank statements, or using the equity growth in your property to qualify for better terms at renewal.
Do not let your tax returns define what you can afford. At Mortgagefy, we specialize in matching self-employed Canadians with lenders who understand business income. Get your free assessment today and find out what you actually qualify for.
Buying your first home in Canada is one of the biggest financial decisions you will ever make. Between saving for a down payment, understanding government programs, and navigating the mortgage approval process, it can feel overwhelming. This guide breaks down everything you need to know in 2026 — from how much you actually need saved to the programs that can give you a significant head start.
The minimum down payment in Canada depends on the purchase price. For homes priced at $500,000 or less, you need a minimum of 5%. For homes between $500,000 and $999,999, you need 5% on the first $500,000 and 10% on the remaining amount. For homes $1 million and above, the minimum is 20%.
For example, on a $600,000 home, you would need $25,000 for the first $500,000 (5%) plus $10,000 for the remaining $100,000 (10%), totalling $35,000. With CMHC mortgage insurance, this smaller down payment gives you access to competitive insured mortgage rates that are often lower than conventional rates.
First Home Savings Account (FHSA): This is the most powerful new tool for first-time buyers. You can contribute up to $8,000 per year (lifetime maximum $40,000), get a tax deduction on contributions like an RRSP, and withdraw the funds tax-free for a qualifying home purchase — combining the best features of both an RRSP and a TFSA.
Home Buyers’ Plan (HBP): Withdraw up to $60,000 from your RRSPs ($120,000 per couple) to use toward your down payment. The withdrawal is tax-free as long as you repay it to your RRSP over 15 years. You can use both the FHSA and HBP together for maximum down payment power.
First-Time Home Buyers’ Tax Credit: A non-refundable tax credit of up to $1,500 to help offset closing costs like legal fees and land transfer taxes.
GST/HST New Housing Rebate: If you are buying a new construction home, you may qualify for a rebate of a portion of the GST or HST paid, which can amount to several thousand dollars.
A mortgage pre-approval tells you exactly how much you can afford and locks in an interest rate for 90 to 120 days. This protects you from rate increases while you shop for a home, and it signals to sellers that you are a serious, qualified buyer.
To get pre-approved, you will typically need proof of income (recent pay stubs, T4s, or a letter of employment), identification (two pieces of government-issued ID), proof of down payment (bank statements showing your savings), and a credit check. The process takes as little as 24 hours through a mortgage broker.
All federally regulated lenders in Canada require you to qualify at the higher of your actual mortgage rate plus 2%, or the Bank of Canada qualifying rate (currently 5.25%). This means even if your actual rate is 4.5%, you need to prove you can afford payments at 6.5%. The stress test reduces your maximum purchasing power compared to your actual payment, so it is important to know your qualified amount before you start house hunting.
Beyond your down payment, plan for closing costs of approximately 1.5% to 4% of the purchase price. These include land transfer tax (varies by province — Ontario offers a rebate of up to $4,000 for first-time buyers), legal fees ($1,500 to $2,500), home inspection ($400 to $600), title insurance ($200 to $400), and CMHC insurance premium (if putting less than 20% down, this is added to your mortgage).
A mortgage broker shops your application across multiple lenders at no cost to you — we are paid by the lender, not by you. As a first-time buyer, this is especially valuable because you get access to rates and programs from over 100 lenders, guidance on which government programs you qualify for, help structuring your application for the best approval, and an advocate who works for you rather than for a bank.
The journey to your first home starts with a conversation. Get pre-approved in as little as 24 hours and find out exactly what you can afford, which programs you qualify for, and what your monthly payments will look like.
If your mortgage is coming up for renewal in 2026, you are part of one of the largest renewal waves in Canadian history. Hundreds of thousands of Canadians who locked in during the ultra-low rate era of 2020 and 2021 are now facing significantly higher rates — and your bank is counting on you to simply sign and send back their renewal letter without shopping around.
Between 2020 and 2021, Canadian mortgage rates hit historic lows, with many homeowners locking in 5-year fixed rates under 2%. Those mortgages are now coming up for renewal into a very different rate environment. The Bank of Canada has adjusted rates multiple times since then, and while rates have come down from their 2023 peaks, they remain well above pandemic-era levels.
For many homeowners, this means renewal shock — monthly payments that could increase by $300, $500, or even $1,000 or more depending on your mortgage size and the rate difference.
When your lender sends a renewal letter, the rate they offer is typically their posted rate or close to it — not the best rate available in the market. Banks know that most Canadians simply sign and return the form without negotiating or shopping around. Industry data shows that roughly 60-70% of borrowers renew with their existing lender without exploring alternatives.
The difference between your bank’s initial offer and the best available rate can be 0.25% to 0.75% or more. On a $400,000 mortgage, even a 0.30% difference saves you approximately $1,200 per year — that is $6,000 over a 5-year term just for taking the time to compare.
The ideal time to start is 120 days before your renewal date. Most lenders offer rate holds that last 120 days, which means you can lock in a competitive rate early and still benefit if rates drop further before your actual renewal date. Starting early gives you leverage and time — two things that work in your favour.
Many homeowners assume switching lenders is complicated or expensive. In reality, at renewal time, you can transfer your mortgage to a new lender with zero penalty. The new lender typically covers the legal and appraisal costs. The process is handled by a lawyer and takes 2 to 3 weeks. You do not need to re-qualify under the stress test if you are switching to a federally regulated lender at or below your current balance.
Life changes between mortgage terms are common — job changes, self-employment, credit issues, divorce, or increased debt. If your financial situation looks different than it did 5 years ago, a major bank may tighten their criteria at renewal. This is where having a mortgage broker matters.
We work with over 100 lenders including credit unions, B-lenders, and alternative lenders who have different qualification criteria. A change in your circumstances does not mean you are stuck with a bad rate — it means you need the right lender match.
120 days before renewal: Contact us for a free rate comparison. 90 days before: Review your options and decide whether to stay or switch. 60 days before: If switching, your new lender begins the transfer process. 30 days before: Legal work is completed and everything is set for a seamless transition on your renewal date.
Do not leave money on the table. Whether your credit is strong, your income has changed, or your bank has offered you a rate that feels too high — we can help. Request your free renewal rate comparison and see what 100+ lenders are willing to offer you.
If you are carrying high-interest credit card balances, car loans, or lines of credit alongside your mortgage, you are likely paying far more in interest than you need to. A debt consolidation mortgage lets you roll all of those debts into one low-rate mortgage payment — and for most Canadians, the savings are significant.
A debt consolidation mortgage uses your home equity to pay off high-interest debts. Instead of juggling multiple payments at rates of 15%, 20%, or even 29%, you combine everything into your mortgage at a fraction of the cost. The result is one monthly payment, one interest rate, and in most cases, hundreds or thousands of dollars saved every month.
Consider a common scenario: you owe $25,000 on credit cards at 20% interest, $15,000 on a car loan at 8%, and $10,000 on a line of credit at 12%. Your combined monthly payments on these debts alone could be $1,500 or more. By consolidating $50,000 in debt into your mortgage at 5%, your payment on that portion drops to roughly $290 per month — a savings of over $1,200 monthly.
Over a year, that is $14,400 back in your pocket. Even after accounting for the longer amortization, the interest savings are substantial because mortgage rates are dramatically lower than consumer debt rates.
You do not need perfect credit to qualify. The primary requirement is home equity — the difference between your home’s value and what you owe on it. If you own a home in Canada and have built up equity, you likely have options.
Home equity: Most lenders allow you to access up to 80% of your home value through a refinance, or up to 85% through a second mortgage with alternative lenders. Income verification: A-lenders require standard income documentation, but B-lenders and private lenders offer stated income and alternative verification programs. Credit score: Major banks typically want 650 or higher, but B-lenders work with scores in the 500s, and private lenders focus almost entirely on your equity position.
Mortgage refinance: Break your current mortgage and replace it with a new, larger one that pays off your debts. Best when rates have dropped or you have significant equity. Second mortgage: Keep your existing mortgage and add a second loan behind it. Ideal when your current mortgage has a good rate you want to keep. HELOC: A revolving line of credit secured by your home. Good for ongoing access to funds with interest-only payment flexibility.
The process is straightforward. First, we assess your full financial picture — all debts, income, property value, and goals. Then we shop your file across our network of over 100 lenders to find the best option. Once approved, the lender pays off your existing debts directly, and you start making one simple mortgage payment. From first call to funding typically takes 2 to 4 weeks, though private lender approvals can happen in as little as 48 hours.
Will it hurt my credit? Actually, consolidating debt often improves your credit score. By paying off revolving balances, your credit utilization drops significantly, which is one of the largest factors in your score.
Is there a penalty to break my mortgage? There may be, but we calculate this upfront. In many cases, the monthly savings far exceed the one-time penalty cost.
What if I have been turned down by my bank? Banks are just one type of lender. We work with credit unions, B-lenders, and private lenders who have different approval criteria. Being declined by a bank does not mean you are out of options.
If your monthly debt payments are stretching your budget, a consolidation mortgage could be the solution. At Mortgagefy, we specialize in finding the right lender match for your situation — whether your credit is excellent or needs work. Get your free assessment today and find out how much you could save.
Canada’s mortgage market is bigger than most borrowers realize. While the big banks get the most attention, B-lenders and private mortgage lenders approve billions of dollars in mortgages every year — often for clients the banks declined. If you have been turned down, this guide is for you.
Banks and federally regulated lenders must follow the federal mortgage stress test (B-20 guidelines). This means they have to qualify you at a rate roughly 2% above the contract rate — even if you can clearly afford the payments. They also heavily penalize:
B-lenders (also called alternative lenders) are provincially regulated financial institutions — typically trust companies and credit unions — that use more flexible underwriting guidelines than banks. They can approve clients who do not pass the stress test, have bruised credit (typically 550–600+ score), or have non-traditional income. B-lender rates in Canada typically range from 5.5% to 8% depending on the scenario.
Well-known Canadian B-lenders include Equitable Bank, Home Trust, CMLS, First National (Alt program), and Haventree Bank.
Private lenders are individuals or corporations that lend their own capital secured against real estate. They base decisions almost entirely on equity — meaning your credit score and income matter far less. Private mortgages are typically short-term (6–24 months) at rates of 8%–14%+ and are used as bridge solutions while a borrower cleans up their credit or income situation to qualify for a better rate down the road.
Most clients who come to Mortgagefy after a bank decline do not stay in alternative financing forever. The typical roadmap looks like this:
Our agents specialize in building this roadmap with you — not just placing you in a loan and walking away.
Mortgagefy has access to 100+ lenders including A-lenders, B-lenders, MICs, and private lenders across Canada. We are paid by the lender — not you. No upfront fees for most scenarios. Licensed under 8Twelve Mortgage Corporation (FSRA Lic# 13072).
Get a Free Alternative Mortgage Assessment →
Receiving a power of sale notice is one of the most stressful experiences a homeowner can face. But here is what most people do not know: receiving the notice does not mean you will lose your home. With the right mortgage strategy, you can stop the process, pay out the arrears, and keep your property — even at the last minute.
Power of sale is a legal process that allows a lender to sell your property to recover an outstanding mortgage debt when you fall into default. Unlike foreclosure (which is rarely used in Ontario), power of sale moves quickly. Under the Mortgages Act (Ontario), once the redemption period expires, the lender can list and sell your home — often below market value.
Time is your most valuable asset here. The moment you receive a notice, you need to start exploring your mortgage options.
The most effective way to stop power of sale is to pay out the mortgage arrears — the missed payments plus penalties and lender legal costs. If you do not have cash on hand, you can accomplish this through:
Most banks will not touch a power of sale situation. That is why Mortgagefy works exclusively with B-lenders, MICs (Mortgage Investment Corporations), and private lenders who base their decision on your equity — not your credit score. If you have 25–30% equity in your property, there is a very strong chance we can get you funded.
A client in Brampton came to us with 28 days remaining on their redemption period. Their bank had refused to help. We arranged a private second mortgage within 8 business days — covering $43,000 in arrears and lender penalties — and the client kept their home.
Mortgagefy is licensed under 8Twelve Mortgage Corporation (FSRA Lic# 13072). Every call is completely confidential. There is no judgment — just solutions. Our agents have helped hundreds of Ontario homeowners navigate power of sale situations and come out the other side.
Call +1 (647) 637-6052 Now — We Answer Fast
If you own a home in Ontario and need access to cash, a second mortgage could be the solution you have been looking for. Whether you are dealing with unexpected expenses, debt consolidation, home renovations, or an investment opportunity, a second mortgage lets you tap into the equity you have built — without touching your first mortgage.
A second mortgage is a loan secured against your property that sits behind your primary (first) mortgage. Because it is backed by real estate equity, lenders can approve clients who may not qualify for traditional unsecured loans or lines of credit. The amount you can borrow depends on how much equity you have in your home.
Most lenders allow you to borrow up to 80–85% of your home’s appraised value, minus the balance of your first mortgage. For example, if your home is worth $800,000 and you owe $500,000 on your first mortgage, you could access up to $180,000–$200,000 through a second mortgage.
At Mortgagefy, 90% of our second mortgage clients get approved — even after being declined by banks. We work with A-lenders, B-lenders, and private mortgage lenders across Ontario to find the right fit for your situation.
Second mortgage rates in Ontario typically range from 7% to 14% depending on your equity position, credit profile, and the lender type. Private lenders tend to charge higher rates than institutional B-lenders, but they also approve clients that banks and credit unions will not touch.
With a private lender, you can receive funds in as little as 5–10 business days. Institutional B-lenders typically take 2–3 weeks. If you are facing a power of sale or urgent financial deadline, we can often arrange emergency bridge financing even faster.
Mortgagefy operates under 8Twelve Mortgage Corporation (FSRA Lic# 13072). Our licensed agents will review your situation at no cost and match you with the lender that makes the most sense — not the one that pays the most commission. No credit check required to get started.
Apply for a Second Mortgage → Free Consultation
Have questions about your mortgage options? Book a quick call with a licensed agent — no pressure, no obligation.
