1. What is a NOSI?
A Notice of Security Interest (NOSI) is a legal instrument that was historically registered against the title of a residential property in Ontario to record a security interest in fixtures attached to the home — typically rented or financed equipment such as a furnace, water heater, heat pump, air conditioner, HEPA air purifier, or water filtration system.
In plain terms: a NOSI is a way for the company that financed your equipment to publicly stake a claim against your house in connection with that equipment. It is not a mortgage. It is not a tax lien. But it shows up on your parcel register, and in practice it functions as an encumbrance that almost always has to be addressed before you can sell or refinance.
For years, NOSIs were the silent partner of Ontario's door-to-door HVAC sales industry — quietly placed on tens of thousands of homes, often without homeowners fully understanding what was being filed.
2. Why a NOSI ended up on your title
If you signed a long-term rental or financing agreement for home equipment — particularly during the 2008-to-2018 period when door-to-door sales of furnaces, water heaters, heat pumps, and filtration equipment were at their peak — there is a meaningful chance that a NOSI was registered against your home as part of that transaction. The contract paperwork rarely highlighted this clearly. The salesperson rarely explained it. In many cases the NOSI was filed days or weeks after the sale, by an entity the homeowner had never heard of.
The companies most frequently associated with NOSI registrations from that era include sales operators such as Ontario Green Savings, Simply Smart Home, EcoHome, National Home Services, SmartCare, Ontario Consumer Home Services, Right Choice, NOMI, Iceberg, and Smart Home Heating & Cooling — and finance entities such as CHICC, SNAP Home Finance, Crown Crest Capital, VaultPay, Financeit, Eco Home Financial, Home Trust, Ontario Financial Group, and EcoCapital. (See our company pages for more on each.)
3. The 2019 NOSI ban — what changed
On 1 March 2019, Ontario amended the Personal Property Security Act to prohibit the registration of new NOSIs against residential real property. The change was a direct response to widespread concern about how NOSIs were being used in connection with door-to-door home equipment sales — concerns documented by CBC Marketplace, the Toronto Star, and the Ministry of Government and Consumer Services.
The ban is forward-looking: it prohibits new registrations from that date forward. It does not, on its own, remove NOSIs that were registered before the ban took effect. Those remain on title — sometimes for years — until they are discharged through one of the paths below.
Important: a NOSI registered before 1 March 2019 is not automatically void or unenforceable. It still has to be actively cleared.
4. How to find out if a NOSI is on your home
The authoritative way to check is to pull a parcel register (a title search) for your property. You can request one through ServiceOntario or your local land registry office. The parcel register lists every instrument registered against your property identifier number, including NOSIs. Each NOSI entry identifies the secured party — frequently a finance company rather than the installer.
Common signals that a NOSI may be on your home even before you pull a search:
- You signed a long-term rental or financing agreement for a furnace, water heater, heat pump, AC, HEPA filter, or water filtration system between roughly 2008 and 2018
- You receive monthly statements from a finance company you do not recognise
- A previous attempt to refinance or sell ran into a title issue you could not get a clear answer about
- Your buyout figures from the company holding the contract seem disproportionate to the equipment's value
5. The three paths to NOSI removal
Path 1: Negotiated discharge through the secured party
The simplest path is direct negotiation with the secured party named on the NOSI. Where the underlying agreement is clearly completed, paid out, or otherwise no longer in force, the secured party should be willing to file a discharge.
In practice this is rarely simple. Secured parties on older NOSIs are often finance companies that have changed hands, merged, or moved files several times. Locating the right contact, securing a discharge statement, and then registering the discharge against title takes persistence. This is the path most appropriate where a buyout has been agreed.
Path 2: Discharge tied to a CPA-grade challenge of the underlying agreement
Where the agreement that gave rise to the NOSI was itself unenforceable under the 2018 amendments to Ontario's Consumer Protection Act — door-to-door sale, unconscionable pricing, misrepresented energy savings, unfulfilled rebates, unfulfilled maintenance, or improper installation — the discharge of the NOSI follows from the resolution of the underlying contract. (See our six grounds page for detail.)
This is the path most homeowners with door-to-door HVAC contracts ultimately take. The NOSI is not the problem in isolation — it is a symptom of an agreement that was never valid. Resolving the contract resolves the NOSI.
Path 3: Court-ordered discharge
Where the secured party is unresponsive, defunct, or refuses to acknowledge the issues with the underlying contract, an application can be brought in the Ontario Superior Court of Justice for an order discharging the NOSI. The court has jurisdiction to grant this relief, and there is now a meaningful body of case law concerning NOSIs registered in connection with door-to-door HVAC sales.
This path takes longer and involves court costs. It is the right path when other avenues stall. Where it is necessary, our process prepares the case file fully so that the involvement of a licensed legal representative is focused and efficient.
6. NOSI at refinance, mortgage renewal, or sale
The most painful moment to discover a NOSI is the day you list your home — or the day your mortgage broker tells you the refinance you were counting on cannot close until the title is cleared. This is one of the most common ways homeowners come to us. The clock is short, the lender is firm, and the buyout figure quoted by the finance company is often disproportionate to the equipment.
If you are in this situation, a few things help:
- Get the parcel register and the buyout statement from the secured party in writing as soon as possible.
- Do not sign a buyout under pressure without a second opinion — the figures quoted are frequently negotiable, and in many cases the underlying agreement is challengeable outright.
- Loop in a representative early. A negotiated discharge or a CPA-grade resolution moves faster when it starts before the closing date is fixed.
7. Frequently asked questions
Are NOSIs banned in Ontario?
Yes. As of 1 March 2019, the registration of new NOSIs against residential property in Ontario is prohibited under amendments to the Personal Property Security Act. The ban does not automatically remove NOSIs that were registered before that date — those still need to be discharged through one of the three paths below.
How do I find out if there is a NOSI on my home?
Pull a parcel register (also called a title search) for your property through ServiceOntario or your land registry office. NOSIs appear as instruments registered against the property identifier number (PIN) and will list the secured party — often a finance company you may not have heard of.
Does a NOSI block me from selling my home?
It does not legally block a sale, but in practice it almost always must be discharged at closing. Buyers' lawyers routinely require it to be cleared, and lenders will not advance funds against a property with a NOSI in place. Many homeowners only discover their NOSI for the first time during a sale or refinance.
Can I just stop paying and the NOSI will go away?
No. The NOSI is independent of the payment relationship. Stopping payment can lead to collection efforts, enforcement, or court proceedings, and the NOSI itself stays on title until it is discharged. Address the underlying agreement first.
How long does NOSI removal take?
It depends on the path. A negotiated discharge through the secured party can take a few weeks. A discharge tied to a CPA-grade challenge of the underlying agreement can take longer if the matter is contested. A court-ordered discharge typically takes the longest, but is sometimes the only path when other avenues stall.
