Document background
The Residential Mortgage Contract is a fundamental document in Canadian real estate financing, used when an individual or family seeks to purchase residential property with borrowed funds from a financial institution. This contract type is essential for securing the lender's interest in the property while protecting borrower rights under Canadian law. It must comply with federal regulations including the Bank Act and Interest Act, as well as provincial property and consumer protection laws. The document typically includes detailed terms about the loan amount, interest rates, payment schedules, default provisions, and property requirements. It's particularly important in Canada's regulated mortgage market, where both federal and provincial oversight ensure consumer protection and financial system stability. The contract must incorporate specific provisions required by Canadian law, including prepayment rights and cost of borrowing disclosures.
