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Contract Of Loan With Real Estate Mortgage for Canada

Contract Of Loan With Real Estate Mortgage Template for Canada

A comprehensive legal document governed by Canadian federal and provincial laws that combines a loan agreement with a real estate mortgage security instrument. The document establishes the terms and conditions of a loan while simultaneously creating a security interest in real property to secure the loan's repayment. It complies with federal legislation such as the Bank Act and Interest Act, as well as applicable provincial property and mortgage laws. The agreement details loan terms, payment obligations, property requirements, default provisions, and enforcement mechanisms, while ensuring compliance with Canadian mortgage lending regulations and real estate security requirements.

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Contract Of Loan With Real Estate Mortgage

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What is a Contract Of Loan With Real Estate Mortgage?

The Contract of Loan with Real Estate Mortgage is a fundamental document in Canadian secured lending practice, used when providing financing secured against real property. This document serves dual purposes: it establishes the terms of the loan relationship between lender and borrower while creating a security interest in real estate to protect the lender's interests. The agreement must comply with both federal banking and interest rate regulations and provincial real estate and mortgage laws. It is commonly used in both residential and commercial lending contexts, requiring careful attention to provincial property laws, registration requirements, and enforcement procedures. The document includes essential provisions regarding loan terms, property descriptions, security arrangements, borrower obligations, default scenarios, and remedies. Given its complexity and legal significance, the Contract of Loan with Real Estate Mortgage typically requires legal review and proper execution in accordance with provincial requirements for real estate documents.

What sections should be included in a Contract Of Loan With Real Estate Mortgage?

1. Parties: Identifies and defines the Lender and Borrower with their complete legal names and addresses

2. Background: Sets out the context of the loan and the intention to secure it with real estate

3. Definitions: Defines key terms used throughout the agreement including Property, Principal Amount, Interest Rate, and Security

4. Loan Terms: Details of the loan including principal amount, interest rate, term, and repayment schedule

5. Security Interest: Description of the mortgaged property and creation of the security interest

6. Representations and Warranties: Borrower's declarations regarding their authority, property ownership, and financial condition

7. Covenants: Ongoing obligations of the Borrower including property maintenance, insurance, and tax payments

8. Events of Default: Circumstances that constitute default and trigger enforcement rights

9. Remedies: Lender's rights and remedies upon default, including power of sale

10. Payment Terms: Detailed payment obligations, including method, timing, and allocation of payments

11. Property Insurance: Requirements for property insurance and designation of loss payee

12. Tax Matters: Obligations regarding property taxes and tax escrow if applicable

13. Assignment and Transfer: Rights and restrictions regarding assignment of the mortgage or underlying loan

14. Notice Provisions: Requirements for giving notice under the agreement

15. General Provisions: Standard boilerplate provisions including governing law, amendments, and severability

What sections are optional to include in a Contract Of Loan With Real Estate Mortgage?

1. Guarantee Provisions: Required when there is a guarantor for the loan obligations

2. Environmental Matters: Required for commercial properties or when environmental risks are a concern

3. Property Management: Required for income-producing properties with specific management requirements

4. Construction Provisions: Required when the loan involves property construction or major renovations

5. Prepayment Terms: Required when specific prepayment privileges or penalties are to be included

6. Secondary Financing: Required when subordinate mortgages are permitted or prohibited

7. Condominium Provisions: Required when the mortgaged property is a condominium unit

8. Cross-Collateralization: Required when multiple properties secure the loan

9. Interest Rate Adjustment: Required for variable rate mortgages or when rate adjustments are permitted

What schedules should be included in a Contract Of Loan With Real Estate Mortgage?

1. Property Description Schedule: Legal description of the mortgaged property

2. Payment Schedule: Detailed amortization schedule showing payment amounts and dates

3. Insurance Requirements Schedule: Detailed insurance requirements including types and amounts of coverage

4. Permitted Encumbrances: List of permitted liens or encumbrances on the property

5. Environmental Reports: Summary or copies of environmental assessments if applicable

6. Property Condition Report: Description of property condition at time of mortgage

7. Standard Charge Terms: Standard mortgage terms as filed with land registry office

8. Cost Schedule: Breakdown of fees, charges, and costs associated with the loan

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions




































Clauses






































Relevant Industries

Banking and Financial Services

Real Estate

Mortgage Lending

Construction and Development

Commercial Property

Residential Property

Insurance

Legal Services

Property Management

Investment and Private Equity

Relevant Teams

Legal

Credit Risk

Mortgage Administration

Commercial Banking

Real Estate Finance

Compliance

Document Management

Property Services

Loan Operations

Risk Management

Relevant Roles

Loan Officer

Mortgage Specialist

Real Estate Lawyer

Property Manager

Commercial Banker

Credit Risk Manager

Legal Counsel

Mortgage Underwriter

Commercial Real Estate Officer

Banking Compliance Officer

Real Estate Development Manager

Financial Services Manager

Document Control Specialist

Property Appraiser

Mortgage Administrator

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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