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Articles tagged with: mortgage

May23

Have a Mortgage on Your Property? Don't Forget to Read the Standard Charge Terms

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In the majority of residential real estate purchases, the purchaser must obtain a mortgage in order to finance the purchase of the property. In these mortgage transactions, the borrower is known as the “Chargor”, while the lender is called the “Chargee”. Most people understand the general concept of a mortgage: it is a type of loan where a lender agrees to loan a significant sum of money (at a specific rate of interest) towards a borrower’s purchase of a property in exchange for such property serving as the borrower’s collateral. Most people also understand the concept of interest rates, the term, amortization schedule, and approval process. However, for many Chargors, the extent of their knowledge and focus on mortgages ends there. Just as important to understand is that when a mortgage is registered on a property (called a “charge”) to secure the Chargee’s loan, a set of Standard Charge Terms (SCT) is also incorporated by reference into this registered charge. The SCT can vary from Chargee to Chargee, but there are key commonalities in most SCT that every Chargor should read and consider. 

Aug18

Vendor Take-Back Mortgages: An Alternative Home Financing Route

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With mortgage interest rates on the rise and the housing market shifting to a more buyer-friendly version, we may begin to notice a resurgence in vendor take-back (VTB) mortgages. Although more commonly used in commercial real estate transactions, a VTB mortgage can used as a creative financing strategy in residential deals as well. Prospective purchasers having trouble securing a mortgage with a traditional lender due to their poor credit or inability to make a large enough downpayment are prime candidates for a VTB mortgage.

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