Toronto, October 10, 2025 — A growing number of financially strained homeowners are being forced to sell their properties through power of sale, a legal process that allows lenders to list a home for sale after mortgage payments are missed. While still a small fraction of total listings, power of sale properties in Toronto have risen sharply this year, creating cautious optimism among some buyers hoping to find bargains in a challenging housing market.
According to data from the Toronto Regional Real Estate Board (TRREB) analyzed by Valery Real Estate brokerage, there have been 49 power of sale listings in Toronto’s downtown core so far this year—more than four times the number recorded in all of 2023. This rise reflects mounting financial pressure on homeowners caused by higher interest rates and the elevated cost of living.
Power of sale listings are often perceived as an opportunity to purchase properties below market value. In reality, experts say the discounts are more modest than many buyers expect. By law, lenders are obligated to sell such properties at fair market value to avoid legal action from the original owners, who can sue if a property is sold below its appraised worth.
Recent data suggests some savings are possible. Between January 2022 and mid-2025, 80 per cent of downtown Toronto power of sale properties sold below asking price, with an average discount of five per cent. This compares to an average discount of about one per cent for standard sales over the same period. A condo listed at $500,000, for example, might sell for roughly $475,000 under a power of sale arrangement—not a rock-bottom deal, but potentially a modest saving.
Finding these listings is not always straightforward. While some appear through keyword searches such as “power of sale” on Realtor.ca or other public platforms, the majority are accessible only through real estate agents who can search MLS data directly. Condos, single-family homes, commercial buildings, and even parking spaces have appeared in power of sale listings across the city.
The properties vary widely in price and type. The average sale price for downtown Toronto power of sale properties since January 2022 was approximately $1.1 million. The most expensive was a mixed-use building on Queen Street West, which sold for $2.9 million, while the least expensive was a waterfront studio unit purchased for $360,000 earlier this year.
Despite the potential for savings, experts are warning buyers to approach with caution. Michael Clark, a senior partner at real estate law firm Korman & Company, said that power of sale transactions often involve significant legal and financial risks that cannot easily be mitigated. Unlike traditional sales, these properties are sold “as-is,” with lengthy contractual schedules that override standard buyer protections. This means purchasers could end up with unforeseen structural defects or outstanding debts tied to the property, with little legal recourse.
Another complication is that original owners can settle their debts right up until closing, voiding the sale at the last minute. Daniel Foch, Chief Real Estate Officer at Valery Real Estate, said this risk makes power of sale deals unsuitable for first-time buyers or anyone on a tight move-in schedule. “If you’re a first-time buyer and you’re planning to move into this house and you gave your landlord notice, it can still get taken away from you two days before that happens,” he explained.
Because power of sale listings remain relatively rare, they also offer less flexibility for buyers seeking specific neighbourhoods, layouts, or finishes. For these reasons, such properties tend to appeal more to seasoned investors than to families or first-time purchasers.
In short, while rising power of sale listings in Toronto may present some opportunities, they are far from the deep discounts some might imagine. For many buyers, they represent a calculated risk rather than an easy win. As the financial strain on homeowners continues, experts expect more of these listings to enter the market—but they stress that buyers should tread carefully, conduct thorough due diligence, and seek professional advice before making a move.