Served with a mortgage statement of claim in Ontario: what to do

Last reviewed October 2026 · General information, not legal advice

If your lender has sued you over a mortgage default, the clock started the day you were served. Here is how the process works under Ontario's Rules of Civil Procedure, and what you can raise in your defence.

What the claim usually asks for

A mortgage enforcement claim typically asks the court for some or all of:

• Payment of the amount owing under the mortgage, including interest and costs;
• Possession of the property, so the lender can sell it under its power of sale;
• sometimes foreclosure or a judicial sale, though these are less common in Ontario.

Your deadline

You have 20 days after service to deliver a statement of defence if you were served in Ontario. The period is 40 days if you were served elsewhere in Canada or the US, and 60 days if you were served outside Canada and the US. Delivering a notice of intent to defend within the original period gives you 10 more days.

How you were served changes the start date. Service by mail takes effect on the fifth day after mailing. The court deadline calculator counts this for you, including weekends and court holidays.

If you miss the deadline

The lender can ask the court registrar to note you in default. Once noted in default, you are deemed to admit the facts in the claim and are not entitled to notice of later steps. The lender can then get default judgment, often without a hearing.

A noting in default or default judgment can be set aside, but you must bring a motion and usually show that you moved promptly, have a reasonable explanation for the delay, and have an arguable defence. It is far easier to file on time.

Defences and issues worth checking

Many borrowers do owe the money. Even so, the amount claimed and the steps taken are often worth checking.

The amount claimed

• Interest on arrears. Section 8 of the Interest Act bars a higher rate, fine or penalty on arrears than on money not in arrears.
• Interest disclosure. Under sections 6 and 7 of the Interest Act, a blended-payment mortgage must state the rate calculated yearly or half-yearly. If it doesn't, interest above 5% a year may not be recoverable.
• Fees and legal costs. Each charge must be authorized by the mortgage, and notice-of-sale costs are regulated.
• Prepayment charges. Section 10 of the Interest Act lets an individual borrower with a mortgage term over five years pay it off after five years with three months' interest.

The enforcement steps

• Was a proper notice of sale given to everyone entitled to it?
• Did the lender start proceedings during the notice period, contrary to section 42 of the Mortgages Act?
• Was the claim served properly?

Payment and dealings with the lender

• Payments the lender has not credited.
• A forbearance or payment agreement the lender has not honoured.

What to put in a statement of defence

A statement of defence states which allegations you admit, which you deny, and which you don't know about, followed by the facts you rely on. It must be served on the lender's lawyer and filed with the court. Keep it to facts; arguments come later.

Defending is not the only goal

Filing a defence protects your position and buys time to reinstate, refinance, or sell on your own terms. Many mortgage actions settle once the borrower shows a credible plan. Use the time well:

1. Request a current payout statement and a reinstatement statement.
2. Run the numbers with the power of sale calculator.
3. Speak to a lawyer or licensed paralegal about your defence.

This is general information. Every mortgage and every file is different. Speak to an Ontario lawyer or licensed paralegal about your situation before you act.