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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…
