Document background
The Contract Of Real Estate Mortgage is a fundamental document in Canadian real estate financing, used when a borrower seeks to secure a loan using real property as collateral. This document is essential for both residential and commercial property transactions across Canada, subject to both federal banking regulations and provincial property laws. It serves multiple purposes: establishing the legal security interest in the property, defining the terms of the loan, outlining the rights and obligations of both lender and borrower, and providing mechanisms for enforcement in case of default. The document must incorporate specific provincial requirements while adhering to federal banking and interest rate regulations. Typically used in property purchases, refinancing, or securing business loans, the Contract Of Real Estate Mortgage includes detailed property descriptions, financial terms, covenants, and conditions that protect both parties' interests throughout the loan term.
