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The First Payment Letter Mortgage is a standard document used in Canadian mortgage transactions to establish and communicate the crucial details of mortgage payment commencement. This document is typically issued after mortgage registration and before the first payment is due, serving as a formal confirmation of payment terms and schedules. It's particularly important in cases where there's an interest adjustment date that affects the timing and amount of the first payment. The letter includes essential information such as payment amounts, dates, frequency, and how payments are applied to principal and interest. Used across all Canadian provinces, though specific requirements may vary by jurisdiction, this document ensures compliance with federal and provincial lending regulations while providing borrowers with clear, documented payment terms. The First Payment Letter Mortgage is an integral part of the mortgage documentation package, helping prevent misunderstandings about payment obligations and serving as a reference point for both lender and borrower throughout the mortgage term.
