Personal Mortgage Loan Agreement Template for Canada

The Personal Mortgage Loan Agreement is a fundamental document in Canadian residential property financing, used when an individual seeks to purchase or refinance residential property with borrowed funds from a financial institution. This agreement serves as the primary contract governing the lending relationship, establishing the lender's security interest in the property while protecting both parties' rights under Canadian federal and provincial laws. It includes essential details such as loan amount, interest rates, payment schedules, default provisions, and property requirements, while ensuring compliance with Canadian mortgage regulations and consumer protection laws. The document is crucial for both secured lending and property ownership records, requiring registration with provincial land registry offices and incorporation of standardized charge terms as per provincial requirements.

1. Parties: Identification of the lender and borrower(s), including full legal names and addresses

2. Background: Context of the mortgage loan agreement, including purpose of the loan and property details

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Details: Principal amount, interest rate, term, and amortization period of the mortgage

5. Security: Description of the property being mortgaged and confirmation of the security interest

6. Payment Terms: Payment schedule, frequency, and methods of payment

7. Interest Calculation: Method of calculating interest and compounding frequency

8. Prepayment Rights: Terms and conditions for early payments or full discharge of the mortgage

9. Representations and Warranties: Borrower's declarations regarding their legal capacity, property ownership, and financial status

10. Covenants: Ongoing obligations of the borrower, including property maintenance and insurance requirements

11. Default Events: Circumstances constituting default and the lender's remedies

12. Enforcement Rights: Lender's rights and procedures in case of default

13. Property Insurance: Requirements for property insurance and handling of insurance proceeds

14. Property Taxes: Obligations regarding payment of property taxes and tax escrow if applicable

15. Notice Requirements: How and where notices must be delivered between parties

16. Assignment: Terms regarding the ability to assign or transfer the mortgage

17. Governing Law: Specification of applicable Canadian provincial law and jurisdiction

18. General Provisions: Standard clauses including severability, entire agreement, and amendments