LawDepot’s Mortgage Agreement is ideal for private mortgages that do not involve federally-regulated financial institutions, such as banks or insurance companies. These institutions must often comply with additional regulations beyond this agreement's scope.
Mortgage laws vary by province. LawDepot provides customized Mortgage Agreements for all provinces and territories except Manitoba.
Our questionnaire will collect the following information to prepare the customized document:
Property details
Include all identifying information about the property, such as the property type, location, and legal land description. The borrower or lender can obtain the legal land description from the province or territory’s local Land Titles Office or online database, as follows:
Party details
Specify the names and addresses of all parties. Include whether the borrower is married, as their spouse’s legal rights to the property, if it qualifies as a matrimonial or family home, may require spousal consent for the mortgage, depending on provincial laws.
A lender might request a guarantor to provide further security for the loan. A guarantor, commonly known as a co-signer, may be held accountable for outstanding payments if the borrower fails to uphold the agreement.
Mortgage terms
Specify the mortgage amount, interest percentage, and interest adjustment date. The interest adjustment date is the official day the money is loaned, and interest will start accruing.
Payment details
Next, provide the payment details for the mortgage, including:
- The frequency of payments (weekly, biweekly, or monthly)
- The payment due dates
- The total amount of each payment
Also, you’ll be asked to identify the maturity date. This is the date the final payment will be made to repay the loan.
Outline whether the borrower can make annual prepayments and, if so, whether there’s a penalty. Annual prepayment will minimize the amount of interest incurred throughout the term.
Clauses
Add any additional provisions, such as a power of sale clause.
A power of sale clause permits the lender to put the property up for sale without a court order if the borrower defaults on their payments. The power of sale clause offers a more efficient recovery process if the borrower defaults on the mortgage.