Document background
The Owner Financing Mortgage Contract is utilized in situations where traditional bank financing is either not preferred or not available, allowing property sellers to act as direct lenders to buyers in Canadian real estate transactions. This arrangement requires careful documentation to protect all parties' interests while ensuring compliance with Canadian federal regulations such as the Interest Act and provincial property laws. The document outlines crucial elements including property details, loan terms, security arrangements, payment schedules, default provisions, and remedies. It's particularly relevant in markets where alternative financing options are sought, or when sellers wish to generate ongoing income through interest payments. The contract must be structured to comply with both federal and provincial requirements, including interest rate restrictions, property transfer regulations, and mortgage registration requirements.
