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Mortgage Purchase Agreement Template for Canada

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Key Requirements PROMPT example:

Mortgage Purchase Agreement

"I need a Mortgage Purchase Agreement for the acquisition of a portfolio of 50 residential mortgages by our investment fund from ABC Bank, with closing planned for March 2025, including CMHC-insured mortgages and specific provisions for ongoing servicing arrangements."

Document background
The Mortgage Purchase Agreement is a crucial document used in Canadian financial markets when one institution seeks to transfer mortgage rights and obligations to another. This agreement type is commonly employed in portfolio sales, securitization transactions, or strategic restructuring of mortgage assets. The document must comply with Canadian federal legislation including the Bank Act, Interest Act, and provincial property laws, while also addressing specific requirements for mortgage transfers in different provinces. A well-structured Mortgage Purchase Agreement includes detailed provisions for the transfer process, representations about the mortgage quality, compliance with Canadian mortgage underwriting guidelines, and arrangements for ongoing servicing. It's particularly important in the Canadian context due to the unique regulatory framework governing mortgage lending and the involvement of entities like the Canada Mortgage and Housing Corporation (CMHC).
Suggested Sections

1. Parties: Identification of the seller and purchaser of the mortgage, including full legal names and addresses

2. Background: Context of the transaction, including brief description of the underlying mortgage and purpose of the purchase

3. Definitions: Definitions of key terms used throughout the agreement

4. Purchase and Sale: Core transaction terms including purchase price, payment terms, and closing conditions

5. Representations and Warranties of Seller: Seller's assertions regarding the mortgage, underlying property, and legal compliance

6. Representations and Warranties of Purchaser: Purchaser's assertions regarding authority and capacity to complete the transaction

7. Closing Conditions: Conditions that must be satisfied before the transaction can complete

8. Closing Procedures: Step-by-step process for completing the transaction

9. Post-Closing Obligations: Ongoing responsibilities of parties after closing

10. Servicing Arrangements: Terms regarding the ongoing servicing of the mortgage

11. Indemnification: Provisions for compensation in case of breach or misrepresentation

12. Governing Law and Jurisdiction: Specification of applicable law and courts

13. Notice Provisions: Methods and addresses for formal communications between parties

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Portfolio Sale Provisions: Used when multiple mortgages are being sold as a portfolio

2. Custodial Arrangements: Required when a third-party custodian will hold mortgage documents

3. Secondary Market Trading: Included when the mortgage may be traded on secondary markets

4. Environmental Matters: Required for commercial properties or when environmental risks are identified

5. CMHC Insurance Provisions: Included for CMHC-insured mortgages

6. Cross-Border Provisions: Required when parties are in different jurisdictions

7. Default Management: Special provisions for managing defaulted or non-performing mortgages

8. Privacy Compliance: Enhanced privacy provisions for sensitive data handling

Suggested Schedules

1. Schedule A - Mortgage Details: Detailed description of the mortgage(s) being purchased, including principal amount, interest rate, term, and maturity date

2. Schedule B - Property Description: Legal description and details of the underlying property

3. Schedule C - Due Diligence Documents: List of required due diligence documents and their status

4. Schedule D - Purchase Price Calculation: Detailed calculation of the purchase price including any adjustments

5. Schedule E - Closing Documents: List of documents required for closing

6. Schedule F - Transfer Documents: Forms and documents required for legal transfer of the mortgage

7. Appendix 1 - Form of Transfer: Standard form for the transfer of mortgage

8. Appendix 2 - Servicing Standards: Detailed standards for ongoing mortgage servicing if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























































Clauses





































Relevant Industries

Banking

Financial Services

Real Estate

Mortgage Lending

Investment Management

Insurance

Legal Services

Property Management

Relevant Teams

Legal

Finance

Risk Management

Compliance

Real Estate

Treasury

Credit

Investment

Portfolio Management

Operations

Due Diligence

Documentation

Servicing

Underwriting

Relevant Roles

Chief Financial Officer

Mortgage Portfolio Manager

Real Estate Finance Manager

Legal Counsel

Compliance Officer

Risk Manager

Portfolio Analyst

Mortgage Underwriter

Investment Manager

Treasury Manager

Due Diligence Specialist

Transaction Manager

Credit Risk Officer

Documentation Specialist

Servicing Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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