Understanding Mortgage Contract Clauses

When getting a mortgage in Ontario, it’s crucial to know certain key details in the contract that affect your rights. Here are the important points:

1. Interest Rate and Payments: The contract should clearly say the interest rate, if it’s fixed or changes, and how much and often you pay.

2. Prepayment Penalties: Some contracts have fees for paying early or extra. Know these terms and fees.

3. Default and Foreclosure: Understand when the lender can declare you in default and take your property. Know the costs and consequences.

4. Mortgage Insurance: If needed, know the terms, costs, and what you must do for insurance.

5. Assumability and Transferability: Check if you can transfer or pass on the mortgage if you sell or give the property.

6. Discharge and Release: Know the steps and conditions to finish paying off the mortgage.

7. Renewal and Refinancing: Understand the terms for renewing or changing the mortgage at the end of the initial term.

8. Dispute Resolution: Know how problems between you and the lender will be solved, like through talking or mediation.

Before signing, carefully read the whole mortgage contract. If needed, ask for help from a professional at Integrity Tree Financial, to understand everything. Find one of our mortgage brokers at www.integritytree.ca today!

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