The Truth About Power of Sale Listings in the GTA:

As headlines continue to stir anxiety about “over a thousand power of sale properties” in the Greater Toronto Area, it’s easy to believe the market is on shaky ground. But are those numbers telling the whole story?

In this week’s episode, I sat down with trusted mortgage expert Dion Beg to uncover what’s really happening in the market and how buyers, sellers, and homeowners can navigate the months ahead with confidence.

The Real Numbers Behind Power of Sale Listings

A viral social media claim recently suggested there are more than 1,000 “power of sale” listings on the Toronto Regional Real Estate Board (TRREB). But when Dion and I dug into the data directly from the backend MLS system, the truth painted a very different picture.

Across all Ontario boards combined, there were about 1,074 listings that matched power of sale criteria. However, when narrowed down to the Toronto Real Estate Board area — which includes Toronto, York, Peel, and Durham Regions — the actual number dropped to approximately 460 listings.

That’s about 1.7% of all active listings, a far cry from the alarming numbers circulating online.

As Dion put it, “Gary, you and I will never make it big on TikTok because we don’t say the hysterical stuff. We just deal with facts.”

Understanding the Shift: Confidence Returns to the Market

Since the Bank of Canada’s recent rate drop, Dion has noticed a sharp increase in purchase activity.

“More buyers are moving forward with confidence,” he explained. “We’ve seen more purchase transactions in the last month than in the previous two months combined.”

This uptick tells me that the real estate market, particularly here in Ontario, is regaining stability after several slow quarters. However, prices remain mixed. In some smaller pockets, average sale prices have edged up by $15,000 to $20,000, while the overall number of transactions remains slightly lower.

Buying and Selling Acreages: What Lenders Really Look At

One of the most insightful parts of our discussion focused on acreage properties — rural homes outside major city centres. These types of properties became especially popular during the COVID years, but selling or refinancing them now can be more complex.

Dion explained that when assessing value, lenders typically only consider about five acres surrounding the main residence, even if the property sits on 50 or 200 acres.

“From a buyer’s perspective, that extra land might seem valuable,” he said. “But from a lending perspective, it’s the immediate five acres that count.”

He also cautioned that wells, septic systems, and outbuildings can impact lending terms. Major banks often lend up to 80% loan-to-value on such properties, but alternative or “B” lenders might cap that at 65–75%, requiring much larger down payments.

What About Secondary Buildings?

Many rural properties include outbuildings or secondary residences, such as workshops, barns, or carriage houses.

While these add value in a buyer’s eyes, lenders and appraisers often ignore these structures in their valuations.

“Appraisers are instructed to focus solely on the main dwelling,” Dion explained. “Even if there’s a second residential unit worth $300,000, it usually doesn’t factor into the appraised value.”

This same logic often applies to insurance. I’ve worked with homeowners who needed separate commercial insurance policies for their additional buildings because insurers view them differently from the primary residence.

Power of Sale Situations: What’s Really Driving Them

While power of sale properties are up from historical norms, they’re not skyrocketing.

The causes remain largely consistent: divorce, death, disease, or financial distress. But the recent financial pressures have added a fifth “D” — debt strain.

Dion has seen more homeowners facing temporary financial stress, needing short-term loans to bridge gaps. “Sometimes we give clients $50,000 to help them get through the year,” he said. “But that’s a band-aid solution, not a long-term fix.”

Mortgage Renewals: Don’t Wait Until the Last Minute

One of Dion’s strongest pieces of advice was about mortgage renewals.

Too many homeowners wait until 30 days before renewal to explore their options, and that can be costly.

“Start the conversation months in advance,” he advised. “If your mortgage matures in February, reach out in October. We can lock in rates now and adjust if they drop before renewal.”

I completely agree. In one example Dion shared, he helped a recently divorced client lower her payments by $600 a month through proactive planning and refinancing ahead of time. These are the kinds of early steps that can make a big difference for homeowners under pressure.

Key Takeaways

• The number of power of sale listings in the GTA is around 1.7%, not the 1,000+ being reported online.
• Buyer activity is rebounding after rate cuts, but price growth remains modest.
• Acreage and rural properties face stricter lending scrutiny, especially with wells, septics, or outbuildings.
• Appraisals focus on the main home only, not extra structures or land.
• Plan early for mortgage renewals to avoid financial stress and secure better rates.

Final Thoughts

The real estate market is always evolving, and while online chatter can sometimes fuel fear, the real data tells a more balanced story. These are big decisions that affect families and finances, and the more informed you are, the better choices you’ll make.