Document background
The Mortgage Indemnity Agreement serves as a critical risk management tool in Canadian mortgage lending transactions, providing additional security to lenders beyond the primary mortgage security. This document becomes necessary when there's a need to protect the lender against specific risks or potential losses related to a mortgage, such as default, property devaluation, or title issues. The agreement must comply with Canadian federal banking regulations and provincial property laws, making it essential to tailor the document to the specific province where the property is located. As a Mortgage Indemnity Agreement, it typically includes detailed provisions about the scope of protection, calculation of liability, and enforcement mechanisms, while ensuring alignment with both federal and provincial regulatory requirements.
