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The Private Reverse Mortgage Contract serves as a crucial financial instrument in the Canadian lending landscape, specifically designed for homeowners aged 55 and above who wish to access their home equity while remaining in their homes. This document is essential when arranging private (non-institutional) reverse mortgage lending, establishing the legal framework for a loan that doesn't require regular payments but instead accumulates interest over time. The agreement must comply with Canadian federal legislation such as the Interest Act and provincial mortgage regulations, while incorporating specific protections for senior borrowers. It details all aspects of the lending arrangement, including property valuation, interest calculation, disbursement methods, borrower obligations, and termination conditions. This type of contract is particularly relevant in situations where traditional reverse mortgage products from major financial institutions may not be suitable or available.

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

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

3. Definitions: Key terms used throughout the agreement, including technical and financial terminology

4. Loan Amount and Interest: Details of the principal amount, interest rate calculation method, and compound interest provisions

5. Property Details: Legal description of the mortgaged property and confirmation of ownership

6. Term and Maturity: Duration of the mortgage and conditions that trigger maturity

7. Disbursement Provisions: Method and timing of loan disbursement (lump sum or periodic payments)

8. Occupancy Requirements: Conditions requiring the borrower to maintain the property as primary residence

9. Property Maintenance Obligations: Borrower's responsibilities for maintaining the property and paying related expenses

10. Insurance Requirements: Mandatory insurance coverage for the property

11. Payment Terms: Explanation that no regular payments are required and how interest accumulates

12. Events of Default: Circumstances that constitute default and trigger repayment obligations

13. Remedies on Default: Lender's rights and remedies in case of default

14. No-Negative-Equity Guarantee: Assurance that borrower's debt won't exceed property value

15. Representations and Warranties: Statements of fact and promises made by both parties

16. General Provisions: Standard contract clauses including governing law, amendments, and notices