Standard Residential Mortgage Commitment

Lender Information

Reference

Name

Address

Borrower Information *

Name

Co-Applicant

First

Last

Guarantor(s)

Property Information *

Address

Terms *

Mortgage loan amount

Registered collateral charge

Prior charges combined

Appraised value

Appraisal company

Appraisal date

Purview value

Purview date

Applicable LTV

Borrower credit score(s)

Property details

Mortgage details

Lender commitment fees

Term type

Interest

Payment type

Retainer deposit required

Closing date

Conditions Precedent Prior to Funding and Closing (PLEASE NOTE that funds for this loan will not be advanced by the Lender until all of the following conditions are met and maintained. The Lender may terminate the Commitment or decline to advance all or any part of the mortgage until these conditions are satisfied to the Lender’s strict satisfaction):

1. Appraisal: Lender must directly receive the appraisal (60 days) from a certified/ licensed appraisal company (must be on Home Trust’s list of qualified appraisers).
2. Deposit: Receipt of the deposit by lender as required (1% or $1500.00, whichever is greater).
3. First /Prior mortgage/charge(s): First must be in good standing and up to date - not exceeding the first charge {or Prior charges combined} as set forth above.
4. Submission: Direct broker submission of most recent Equifax credit report, mortgage application, borrower application, co-borrower application, employment proof, and debt account payoff statements, as well as proof of property insurance, realty taxes paid off and other requirements as requested by the lender. Absolute Minimum beacon score of 600 is required for each.
5. Lender’s solicitor approval: The Lender’s lawyer is to conduct legal due diligence and must approve of this deal in its entirety.
6. Adequate identification: The Borrower and each Co-Applicant and/or Guarantor to provide two government-issued IDs for each individual. It is a condition of this commitment that the lender’s solicitor confirms that (i) they have reviewed and verified the identity of the mortgagor(s) and any spouse consenting to the mortgage by means of 2 pieces of identification (one must be primary identification) acceptable to the mortgagee, (ii) the identification appears to be genuine, (iii) the identification belongs to the mortgagor(s) and consenting spouse and (iv) copies of the identification showing a true likeness of the originals will be submitted to the mortgagee. The lender’s accepted forms of identification will be communicated to the solicitor upon instruction. All IDs must pass proprietary ID verification and confirmation system.
7. Title insurance: This transaction must be title insured by First Canadian Title or as directed. The borrower is responsible for the payment of the applicable premiums.
8. Valid and satisfactory title: This transaction is contingent upon valid/satisfactory title/deed to the subject property (satisfactory to the lender)-completely title-insurable.
9. Maturity: If the loan is not repaid on maturity, a 3-month interest bonus will be paid to the lender pursuant to Section 17 of the Mortgage Act.
10. Payment upon sale: The outstanding amount of the mortgage loan may be prepaid only at the closing of a bona fides open market sale of the property and the payment of the prepayment charge. In case of capitalized interest payments, all such payments for the entire term shall be deducted from the advance along with other applicable fees. All such fees and also capitalized and deducted interest payments will be deemed fully earned in case the borrower decides or requires to discharge, sell, transfer, divest or payoff the mortgage. That is, all payments shall be deemed fully and completely earned by the lender once the closing and registration of the charge is complete to the strict satisfaction of the lender’s lawyer.
11. Environmental: Prior to funding, the lender requires evidence by way of statutory declaration from the mortgagor(s) that the premises being mortgaged are not and never have been: insulated with urea formaldehyde foam insulation, have no prior environmental issues, have never been utilized as grow-op for growing of crops, including marijuana, or manufacture or synthesis of drugs.
12. Prepayment: Open with 3 Months Interest Penalty, plus full interest amount for month of repayment unless specifically mandated ‘open’ or ‘open thereafter’.
13. Renewal: Any renewal will be solely at the discretion of the lender. Lender renewal fees will apply. 30 days written advanced notice of renewal is required (upon the expiry of the term) and the lender shall- at its sole discretion - grant or refuse the said request. If renewal is granted, the lender shall be entitled to and receive a renewal fee in the amount of 4% of the total value of the outstanding mortgage at the time of renewal.
14. Clear and/or satisfactory execution certificate: This transaction is contingent upon valid and satisfactory execution certificate for each and every Borrower/Applicant/Co-Borrower/Co-Applicant.
15. Spousal consent: Spousal consent, if applicable, is required and mandatory.
16. Borrower interview: Satisfactory interview of the borrower is mandatory.
17. Property inspection: Satisfactory inspection of the property is required.
18. Realty taxes: Satisfactory tax clearance certificate and/or must show realty taxes are fully paid and up to date. Signed borrower disclosure forms: It is a condition of this commitment that the mortgage broker provides a copy of the Borrower Disclosure Statement fully executed by all parties involved.
19. Interest adjustment: Solicitor to disburse a cheque for interest adjustment to the first of the next month.
20. Credit bureau: A new credit bureau check will be run 5 days prior to the advance of funds. The credit must remain the same as or be better than the credit bureau check run at the date of approval of the transaction. Should the credit not remain the same, this commitment will be subject to review and terms may be changed accordingly. Minimum beacon score of 600 applies.
21. Administration authorization: Direction authorization, administration fee and account management disclosure document to be signed by Borrower(s).
22. Lender authorization: All of our normal requirements and, if applicable, those of the mortgage insurer, must be met. All costs including legal, survey, appraisal, broker fee, etc., are for the account of the borrower and must be paid by the borrower(s). This mortgage is subject to the details and terms outlined as well as the conditions described on any attached Schedule A and the Mortgage Funding Agreement. In addition, the lender’s lawyer’s strict legal requirements and standards must be met in a satisfactory condition prior to funding.
23. Client acceptance: I/We the undersigned applicant(s) accept the terms of this mortgage as stated above and agree to fulfill the conditions of approval as outlined on any attached Schedule A to the lender’s satisfaction. I/We further certify that the information given on the mortgage application is correct. We further confirm that the provided deposit is non-refundable.
24. Retainer deposit upon signing: 1% or $1500.00 (whichever is greater) in order to render this commitment binding (to be deducted from lender fees). Lender’s standard internal evaluation, direct physical inspection & back office origination fee of $475.00 shall apply upon the closing. Upon discharge, discharge statement fee of $395.00 and discharge registration fee of $892.00 will apply. In addition, annual mortgage administration fee of $565.00 will apply. Further & applicable lender mortgage administration & management charges have been disclosed and provided in Schedule A “Mortgage Administration Schedule”. Legal fees shall always remain separate and in addition and must be paid by borrower.
25. Solicitor requirement: The Lender requires that each party (the lender and the borrower) is be represented by its own independent solicitor/lawyer or otherwise as the regulations permit. Borrower is responsible for both parties’ legal fees and disbursements. Lender’s lawyer will charge $1,500.00 legal fees plus disbursements/title insurance fees. Borrower’s solicitor shall charge its own.
26. Solicitor due diligence: Solicitor will be appointed to act on lender’s behalf in this transaction. All documentation including, but not limited to, delivery of evidence confirming valid title insurance with applicable schedules from a title insurer approved by the lender and property/casualty insurance must be acceptable to use prior to the advance of funds. Prior to closing, lender’s solicitor is instructed to notify the lender or an agent approved by us and the relevant underwriting department of the title insurer, of any concerns the solicitor may have regarding the identity of the borrower, the validity of prior registered instruments (particularly transfers and discharges), and any other matters that may affect the title of the subject property and/or the enforceability or priority of the lender’s this subject mortgage. In these circumstances, the lender’s solicitor may not proceed to complete the transaction until such time as the solicitor has obtained both the title insurer’s and the Lender’s written authorization to proceed.
27. Additional costs: Appraisal and/or direct transmittal costs, lender legal fees and disbursements, title insurance, borrower legal fees and disbursements, and broker fees all are extra.
28. Monthly payments: Payments due under this mortgage will be made by a pre-authorized payment debit system. This mortgage will be paid monthly unless otherwise indicated by the lender.
29. Undertaking for cost: Your acceptance of this commitment will be your undertaking to pay these costs together with all legal costs and fees incurred, whether or not this charge/mortgage is advanced. Please reference lender’s registered Standard Charge Terms.
30. Time of essence: IN ALL MATTERS, TIME SHALL BE OF THE ESSENCE.
31. Commitment fee: The initial deposit for the commitment fee is non-refundable. In addition, the lender’s lawyer costs will be deemed earned, and will be assumed by the borrower(s), if this commitment is rendered null and void as a result of actions, or failure of actions taken, or incorrect information supplied by the borrower(s).
32. Broker sign off: The mortgage broker/agent in charge must sign off on this commitment form to evidence the said party’s direct involvement in brokering this mortgage. It’s an essential condition of this commitment that the referring broker certifies the correctness and accuracy of all provided information.
33. The following Lender forms must be duly completed, initialed & signed prior to funding: Contact Information Form, Administration Schedule, Preauthorized Debit Form & Privacy Agreement.
34. Payable in full upon maturity: Renewal at the sole discretion of the lender and subject to 4% renewal fee. The borrower should arrange for a timely pay off of this mortgage upon maturity. The borrower must advise and update the lender 30 days prior to the maturity of this mortgage. Should this mortgage not be repaid or renewed upon maturity, the new interest rate of 39.99% Semi- Compounded Per Annum shall be charged from the date of the applicable renewal. The borrower consents to the aforementioned provisions. In case neither repayment nor renewal is arranged by the borrower- the lender shall swiftly move for the legal enforcement of this mortgage. All costs - including administration, management and legal shall be on the account of the borrower.
35. Mortgage Enforcement: The lender strictly reserves the right to exercise its legal right to enforce this mortgage upon non-payment, breach of covenants and/or upon expiry of the term (including but not limited to). The lender endeavors to keep borrowing charges reasonable for those who pay their mortgages on time. To accomplish this, it is the policy to recover the full costs incurred as the result of borrowers who do not pay on time and/or those who do not treat this legal obligation with full sense of responsibility.

Required Documents

Special Conditions and Requirements

The Mortgage/Commitment Letter/Agreement’s final approval by the lender at its sole discretion and strictly contingent upon the lender’s lawyer review and approval- shall- when approved, constitute and be contingent upon and subject to the following additional conditions precedent which shall each have been received, reviewed and/or met, as the context implies, to the satisfaction of the Lender in its sole, absolute and unfettered discretion. Any and all security to be inspected, reviewed, amended and/or extended, as applicable, at the sole discretion of the Lender and its legal counsel. Further, Any and all registration, postponement, subordination and/or standstill agreement(s) related to the Lender, the Property, or any other party(s) with a registrable interest on title to the Property shall be arranged to the full satisfaction of the Lender in its sole, absolute and unfettered discretion. In the event that the abovementioned Conditions Precedent have not been satisfied by (required date), at the exclusive option of the Lender, the Lender’s obligations under this Commitment and/or LOI or any subsequent offering, interest, agreement, original or amended and extension agreement related to this LOI, and/or the Mortgage, the Lender’s obligations under this LOI or any extension agreement amending shall cease and the Mortgage and/or its applicable funding/provision will become due and payable in accordance with the terms of the original Mortgage (if the case) and/or the discussed funding/mortgage provision shall become null and void without any obligation whether implied or explicit- that is- none whatsoever and as/if applicable its Schedules “A” and “B”. Notwithstanding the same, the Lender shall remain entitled to earn and receive full payment of the LOI issuance Fee and/or Amendment Fee as well as any other fees, expense or disbursements as well as loss of work hours- it may or may have incurred. This shall directly translate into fully recovering from the Borrower and/or Borrower Applicants and Guarantor any expenses incurred by the Lender (and/or anticipated Lender).

Acknowledgement, Authorization, and Consent *

Applicant name

Date

Applicant Acknowledgement and Consent *

As the above-stated applicant, I acknowledge to having read all the terms of this Residential Mortgage Commitment and provide consent to all its stated terms and conditions.

Co-applicant name

Date

Co-applicant Acknowledgement and Consent

As the above-stated co-applicant, I acknowledge to having read all the terms of this Residential Mortgage Commitment and provide consent to all its stated terms and conditions.

(Please fill this checkbox only if a co-applicant is a party to this agreement.)

Guarantor name

Date

As the above-stated Guarantor, I acknowledge to having read all the terms of this Residential Mortgage Commitment and provide consent to all its stated terms and conditions.

(Please fill this checkbox only if a guarantor is a party to this agreement.)

Broker Acknowledgement and Certification *

Broker name

Brokerage name

Brokerage FSCO #

Individual FSCO #

Date

As the above-stated broker of record, I hereby certify that I have read the above terms of this Mortgage Commitment and verify its accuracy and suitability for the above-stated Applicant(s). I further certify that I am duly registered, licensed and insured. I further certify that to the best of my knowledge all documents and material facts are accurate, correct and applicable.