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There are a number of obligations on the part of the borrower in a mortgage arrangement. Most commonly, it is a failure to make timely payments on the mortgage that will cause the lender to take action.  If a borrower defaults under the mortgage, the lender basically has two option either to proceed by way of power of sale or foreclosure.  Under power of sale proceedings any excess funds after paying out the encumbrances on title are returned to the borrower.  Whereas with foreclosure, the lender becomes the owner of the property.  We rarely see foreclosure proceedings because the legal costs are much greater and it takes quite a long time.  In contract, power of sale proceedings are relatively easy to commence and can be done very quickly.

It is fairly common knowledge that first time homebuyers in Ontario do not have to pay land transfer tax. What is not as commonly known, is that if you owned a home with a prior spouse, but end that relationship and meet the legal definition of a spouse with a new partner, then you can still qualify to be exempt from land transfer tax. When you purchase, you will be required to swear an affidavit confirming the purchase of your prior home, the end of the prior relationship and status of your new relationship (being spouses). Obviously, your new spouse must be a first time home buyer for this all to work. Knowing this information can save you hundreds or even thousands of dollars in land transfer tax.