When borrowers default, Canadian lenders usually use one of two methods to recover mortgage debt:
- Judicial sale
- Traditional foreclosure via the courts
- Used in BC, Alberta, Saskatchewan, Manitoba, Nova Scotia, and Quebec
- Power of sale
- Liquidation with minimal court involvement
- Used mainly in Ontario, Newfoundland, New Brunswick, and PEI
Below are estimates from DBRS of the time it takes to foreclose on a typical property in each province (in months).
| Province | Foreclosure Period |
| AB | 4 |
| BC | 8 |
| MB | 1 |
| NB | 2 |
| NL | 6 |
| NS | 3 |
| NT | 10 |
| NU | 10 |
| PE | 2 |
| ON | 4 |
| QC | 9 |
| SK | 4 |
| YT | 4 |
Keep in mind, there are several variables, as well as additional collection times, that often apply. DBRS estimates that these factors could add up to 10 months to the total liquidation time.
Here’s more about the (Ontario) liquidation process from Blakes…
Very interesting!
will overdue porperty taxes cause a default situation on an RBC mortgage? the current mortgage is up for renewal at the end of the year and we were wondering what difficulties we are faceing
Technically it probably will. Read your RBC mortgage agreement.
You will need to prove your taxes are up to date if you plan to renew with another lender.
Thanks for your post.
I have a weird question. I was 2 months late on my mortgage with City financial and they foreclosed on my property. the problem is that way 19 months ago and Im still getting property tax bills. I went to Service NB and paid for a registry search. There are no traces whatsoever of any kind of legal action, no efforts from them to sell, no adds in papers…Could it be that the owed taxes and the value of the house compared to the debt wasnt worth it for them to pursue things….Honestly when I found this out I moved back in and have been there for 3 months but always looking out my door, can you give me some indication of the statu of limitations for a debtor to close a foreclosure, its been 19 months and registry is clean.
Thank you in advance