Mortgage Fee Agreement Template for Canada

The Mortgage Fee Agreement is a crucial document used in Canadian mortgage transactions to establish the financial relationship between mortgage professionals and borrowers. This agreement is essential when a borrower engages a mortgage broker or lender for mortgage services, whether for residential or commercial properties. It details all fees, charges, and services related to obtaining and administering a mortgage, ensuring compliance with federal legislation such as the Bank Act and provincial mortgage brokerage laws. The document serves as both a legal requirement and a protective measure, providing transparency in fee structures and clearly defining the roles and responsibilities of all parties involved. The agreement should be used at the beginning of any mortgage arrangement to prevent future disputes and ensure all parties understand their financial obligations.

1. Parties: Identifies and provides full legal details of the mortgage broker/lender and the borrower(s)

2. Background: Establishes the context of the agreement, including the purpose of the mortgage and the broker's/lender's role

3. Definitions: Defines key terms used throughout the agreement

4. Services to be Provided: Detailed description of all services to be provided by the broker/lender

5. Fee Structure: Comprehensive breakdown of all fees, including broker fees, administration fees, and any other charges

6. Payment Terms: Details of how and when fees are to be paid, including payment methods and timing

7. Obligations of the Broker/Lender: Specific duties and responsibilities of the broker/lender

8. Obligations of the Borrower: Requirements and responsibilities of the borrower

9. Representations and Warranties: Statements of fact and guarantees made by both parties

10. Term and Termination: Duration of the agreement and conditions for termination

11. Confidentiality: Provisions regarding the handling of confidential information

12. Governing Law: Specifies that the agreement is governed by Canadian law and the applicable provincial jurisdiction

13. Execution: Signature blocks and execution requirements