When you accept a mortgage offering from a mortgage lender, you are also accepting the standard charge terms created by the lender and outlined in the mortgage contract.
The standard charge agree outlines the rights and responsibilities of the borrower during the time the mortgage is outstanding.
Failure to comply with all the listed requirements can put the mortgage into default, allowing the lender to exercise their rights which are also outlined in the document.
Once the mortgage contract is signed by the borrower, the borrower agrees to and promises to uphold each of obligations or covenants that are outlined in the mortgage contract.
Here are a list of the basic mortgage covenants that are likely to appear in the standard charge terms that a borrower will need to sign to receive mortgage funding.
Failure to comply with any and all of these covenants will result in the lender considering the borrower to be in default at which time the lender can exercise its rights which have been agreed to by the borrower when the mortgage contract was signed.
The lender also has a number of covenants that they must agree to as well.
While the above borrower and lender covenants are going to be standard in just about any mortgage, the important thing to understand is your obligations as a borrower and the rights of the lender that you are agreeing to on signing.
You may not be able to alter any of these covenants or requirements, but you do need to understand them and comply with them in order to avoid the lender taking action against you in a situation of covenant default.
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I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel