Real Estate Law
Private Mortgages / Charges

Private mortgages/charges financing is growing exponentially and is now one of the most preferred options for purchasers looking to finance their needs.

Private mortgages/ charges are short-term loans (most are interest only), ranging in length from 1 to 3 years. It’s a fact that conservative lending guidelines used by banks and conventional lenders exclude many individuals who are otherwise perfectly capable in paying back loans.

Considering how frustrated the stock market is, and how frequent the Bank of Canada raise the interest rate, lending your hard earned money out as private mortgages/ charges is gaining popularity at an exponential rate.

HTW Law holds the belief that the first step in creating a Private Mortgage/ charge is to help the potential lender understand that: Existing relationships between the borrower and seller may change; the lender might be unable to retire and suffer significant financial lost if the borrower defaults; the fluctuations in property value might amount to tens or hundreds of thousands of dollars.

HTW Law holds the belief that the second step is to have a well-drafted Private Mortgage/ Charge Agreement. A good loan agreement is a must and is required to protect the financial interests of both the seller and the buyer. For instance, interest rate, accepted payment method, payment frequency, notice requirements, actions to be taken in case of default and other relevant terms should be reduced to writing.


HTW Law holds the belief that the third step is to make sure that the private mortgage/ loan is secured by collateral of a sufficient amount to recover not only just the amount outstanding, but also lawyer’s fee and other administrative fees in case of a default.

HTW will diligently and meticulously perform credit check of the potential borrower, a title search on the property the potential borrower intends to use as collateral, review mortgage/ charges and other instruments registered on title to make sure the collateral to be used is of a sufficient amount.

HTW Law holds the belief that the final step is to make sure that an instrument regarding such a private mortgage/ charge is correctly registered on title, and everything is exactly at where they should be, no more, no less.

To ensure that the private mortgage/ charge is duly executed and enforceable in a court of law, HTW Law will ensure that all parties involved are signing the loan agreement with full appreciation of the rights and responsibilities. HTW Law will also make sure the borrower and his/ her spouse have obtained independent legal advice and have full appreciation of the agreement that they are signing and that they are fully aware of the legal consequences in case of a default.

HTW Law can help. Call us now at 647-849-6582 or send us a message if you have some legal questions / inquiries or want to schedule an appointment with HTW Law.


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