What Happens if a Mortgage Has No Maturity Date in Ontario?

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When reviewing a mortgage or charge registered on title in Ontario, one of the most important terms is the maturity date—the date on which the full principal becomes due. But what happens if the lender’s charge does not set out a maturity date? Can the lender still enforce the mortgage if the borrower defaults?

At Rabideau Law, we are often asked about this situation, particularly in the context of private mortgages where a maturity date may have been left blank, omitted by mistake, or intentionally left open. Here’s what Ontario law says.

The Legal Framework

Mortgages registered in Ontario are governed primarily by the Mortgages Act, R.S.O. 1990, c. M.40 and the Land Titles Act, R.S.O. 1990, c. L.5.

  • A mortgage with a stated maturity date clearly sets the point in time when the principal is repayable.
  • If no maturity date appears, Ontario law generally treats the mortgage as a demand mortgage.

A demand mortgage means the lender can call the loan due at any time by making a written demand for repayment.

This principle is confirmed by the Supreme Court of Canada in Royal Bank of Canada v. W. Got & Associates Electric Ltd., [1999] 3 S.C.R. 408, which held that demand loans are payable immediately once demand is made. Ontario courts apply the same reasoning to mortgages registered on title.

Default and Power of Sale

In Ontario, a lender can only exercise power of sale after a borrower is in default. For a mortgage with no maturity date:

  • Written Demand Required – The lender must first make a clear written demand for repayment of the entire outstanding balance.
  • 15-Day Waiting Period – Under s. 24 of the Mortgages Act, the borrower must be in default for at least 15 days before the lender can serve a Notice of Sale.
  • Notice of Sale – The lender then serves a Notice of Sale Under Mortgage (Form 1), giving:
    • 35 days’ notice if mailed to the borrower,
    • 40 days’ notice if mailed to subsequent encumbrancers or the sheriff.

Only after these statutory timeframes expire may the lender proceed to sell the property under power of sale.

Practical Impact

The absence of a maturity date does not make the mortgage unenforceable. Instead, it shifts the mortgage into the category of demand debt. The main practical difference is procedural:

  • The lender must take the extra step of issuing a demand letter before alleging default.
  • The borrower may sometimes argue “no default” until such demand is made.
  • To protect against disputes, lenders should serve a written demand in clear terms and keep evidence of service.

Key Takeaways

  • A charge with no maturity date is legally valid in Ontario and it is treated as a demand mortgage.
  • The lender must issue a written demand and allow the statutory 15-day default period before serving a Notice of Sale.
  • Purchasers or investors acquiring such mortgages should be aware that the enforcement timeline starts only once demand is made.

How Rabideau Law Can Help

ortgage enforcement is a technical process, and small oversights can create major delays. At Rabideau Law, our team regularly assists lenders, private investors, and borrowers with mortgage enforcement and power of sale proceedings across Ontario.

Whether you are a lender seeking to enforce your rights or a borrower defending against proceedings, we can provide the clarity and strategy you need.

Contact us today to schedule a consultation and discuss your mortgage enforcement options.