Receiving a prior notice of exercise, commonly called a "60-day notice", is a shock. But here is the most important thing to remember: this notice is not the end. It is a deadline. Quebec law gives you this time precisely so you can react. Every day counts, but options remain, often more than you think.
What exactly is a 60-day notice?
In Quebec, a hypothecary creditor (your bank or another lender) that wants to exercise its rights on your property must first serve you a prior notice of the exercise of a hypothecary right and register it at the land register. For a residence, the law sets a minimum period of 60 days before the creditor can move to the next step, usually taking in payment (the creditor becomes the owner) or a sale under judicial authority.
In practical terms: during this period you keep your rights, including the right to remedy the default, meaning you pay the arrears and costs to stop the process.
Every legal situation is different. To understand your rights precisely, consult a notary or a lawyer quickly. Many offer a first consultation at a reasonable cost.
Step 1: Don't ignore the notice
This is the most expensive mistake. The clock runs whether you act or not. The owners who come out best are the ones who move in the first days, not the last weeks. Open the document and note the date of service and the amount claimed.
Step 2: Understand what the creditor is claiming
The notice states the default (usually missed payments) and the amount needed to remedy it: arrears, interest and certain costs. This amount is often much smaller than the total mortgage balance, and that is the key. In many cases, settling the arrears is enough to stop the process.
Step 3: Take stock of your resources
Three questions to ask yourself honestly:
Can I pay the arrears myself? Savings, family help, selling an asset. If so, that is usually the simplest path.
What is my property worth, and how much do I owe on it? The difference, your equity, is your main lever. An owner with equity has options, even with damaged credit or income that is hard to document.
Do I want to keep the property? This is not a question of pride but of numbers. Sometimes selling yourself (at market price, on a timeline you control) protects your equity better than a forced sale.
Step 4: Know your financing options
If you want to keep the property but cash is short, a private mortgage is the tool most often used in this situation. Why? Because the decision rests mainly on the property's equity, not on the credit score, which is often already affected at this stage.
In practice, a private loan can repay the arrears (or the whole creditor), which ends the process once payment is made. With a direct private lender, the eligibility decision can be made in under 48 hours and funds released in as little as 5 business days, a pace compatible with the 60-day period, as long as you don't wait until the last minute.
Let's be transparent about costs, because it matters: a private loan costs more than a bank mortgage. Indicative rates are around 12% on a 1st mortgage and 15% on a 2nd, plus lender fees (usually 2 to 5% of the loan) and notary fees. That is the price of speed and flexibility, and it is designed as a transitional solution, not a permanent one: we stabilize the situation, then plan the return to conventional financing or a sale at a time you choose.
Step 5: Build what comes next, starting now
Whatever path you choose, insist on a clear exit plan. If you take a private loan, ask this on the very first call: "How do I get out, and when?" Healthy answers: rebuilding credit over 6 to 24 months followed by a bank refinance, a sale at market price, or a broader consolidation of your situation.
Key takeaways
A 60-day notice is a deadline, not a verdict. The earlier you act, the more options you have: paying the arrears, private financing based on your equity, or a controlled sale. At every step, surround yourself with the right people: a notary or lawyer for the legal side, and a lender who explains the costs in writing before anything is signed.
Frequently asked questions
Is it too late if the period has already started? Often not. As long as the process isn't complete, options usually exist, but they shrink over time. A file started in week 2 has more room than one started in week 8.
Does a private loan automatically stop the process? The process ends when the default is corrected, meaning when the creditor receives payment. A private loan is a way to get there quickly; coordination is handled with your notary.
Will my credit score prevent approval? With a private lender, the property's equity is the main criterion. Damaged credit alone does not prevent financing. Every file is assessed individually.
How much equity do I need? Generally, total financing does not exceed 75% of the property's value. Example: a $500,000 home allows up to about $375,000 in total financing, all mortgages combined.
Going through this right now? Vortex Finance is a direct private mortgage lender in Quebec. A free first assessment, no credit impact, in under 48 h. Check your eligibility or call us: files with a deadline get priority.
The information above is general and provided for information only; it is not legal or financial advice. The rates and fees mentioned are indicative and vary by file; all terms are confirmed in writing before signing. Consult a notary or a lawyer about your particular situation.
