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Buying a Power of Sale Home in Belleville or Quinte West? Line Up Your Financing First
October 4, 2026 | Posted by: Craig Nickerson
Power of sale listings in Belleville, Quinte West and the surrounding area can look like a bargain. Sometimes they are. But these purchases work differently from a regular sale, and the financing needs to be planned before you make an offer, not after.
How a power of sale purchase is different
In Ontario, when a homeowner falls behind on their mortgage, the lender can sell the property under power of sale. The lender has usually never lived in the home and knows little about it, so it's typically sold 'as is, where is,' with a Schedule A added to the offer that protects the lender.
• No warranties about the condition of the home, its appliances or its systems.
• The property may have been vacant for some time, or have deferred maintenance or damage.
• The original owner may still be able to bring the mortgage back into good standing before closing, which can cancel your purchase.
• Closing dates and terms are often set by the lender's lawyer and can move.
Why the financing can be tricky
Your lender will want an appraisal, and a home that needs significant work or has been sitting empty can come in lower than expected or fall outside a lender's guidelines. Insured mortgages generally require the home to be in livable condition. If the numbers or the condition don't line up, a buyer who thought they were approved can be left scrambling just days before closing.
Plan before you offer
• Get a full pre-approval, and talk with your broker about the specific property before you write the offer.
• Budget for repairs, a larger cushion for surprises and insurance on a vacant home.
• Ask about purchase-plus-improvements financing if the home needs updates.
• Have your deposit ready and understand when it could be at risk.
Practical experience, not just theory
I've bought several power of sale homes myself as investment projects, so my advice comes from first-hand experience on the buyer's side: writing offers around a Schedule A, dealing with homes sold 'as is,' budgeting for the surprises and getting the financing to close. I know where these deals tend to go sideways, and how to plan for it.
When in-house private funds can help
Some power of sale homes won't fit a bank's guidelines on day one. Because Simpligo Mortgages also lends its own private funds, we can sometimes provide short-term financing to close the purchase and complete the repairs, with a clear plan to move into a regular mortgage once the property is back in good shape. It's not the right tool for every buyer, and we'll tell you honestly if it isn't for you.
Questions to ask your lawyer
• What does the Schedule A in this offer mean for me?
• Are there title issues, work orders, liens or tax arrears to watch for?
• What happens to my deposit if the owner redeems before closing?
• How flexible is the closing date?
Found a power of sale listing you like? Let's look at the numbers together before you make an offer.
Buying in Belleville? Learn more about working with me on my Belleville mortgage broker page.
Call or text Craig at 613-394-5810 or email craig@simpligomortgages.com.
This article is general information, not legal advice. Financing is subject to lender approval, property valuation and program requirements. Please speak with a real estate lawyer before buying a power of sale property.
