Document background
The Family Mortgage Agreement is essential when family members wish to establish a formal, legally-binding mortgage arrangement in Canada. This document is particularly relevant when parents, siblings, or other family members provide mortgage financing instead of traditional lending institutions. The agreement ensures compliance with Canadian federal and provincial regulations while addressing the unique aspects of family lending. It includes crucial elements such as loan terms, interest rates, payment schedules, and security provisions, while also incorporating specific clauses related to family dynamics, potential gift considerations, and estate planning implications. The Family Mortgage Agreement helps prevent future disputes by clearly documenting the terms of the arrangement and protecting all parties' interests through proper legal structure and documentation.
