The Mortgage Commitment Simplified…

No matter how long or short the mortgage commitment is, there are 4 promises you make as the mortgagor to the lender when you take on the responsibility of owning real estate:

  1. You promise to repay the loan amount – the loan repayment includes the debt plus accrued interest.
  2. You promise to pay the property taxes – some lenders require that you  include a portion of the annual taxes with your payments.  When the taxes are due the lender pays the taxes from a tax account maintained by them.   This ensures that there are funds available to pay the taxes when they are due so that the property doesn’t fall in arrears.  This arrangement is easier for you, as you don’t have to provide a lump sum payment when taxes are due.

If you pay the property taxes on your own,  the lender will check annually to make sure the taxes are being paid.

  1. You promise to keep the property adequately insured with home insurance.   The insurance will protect you against fire and other specified hazards to the full insurance value of the real estate.  The policy should say the proceeds are payable to the lender by their specified name.
  2. Your last promise to the lender is to keep the property in a reasonable state of repair.  You will keep the property maintained in a manner that will preserve the value of the real estate.

In return for keeping your 4 promises, the lender promises the following in return:

  1. To discharge the mortgage upon full repayment.
  2. To leave you allow in “quiet possession” of the property, and not interfere with your use and enjoyment of the real estate.


Do you know what your mortgage options are?  I Do!


If you have any questions in regards to your mortgage options, please call, text or email.


Elise Hildebrandt, AMP

Mortgage Associate

The Mortgage Centre


C: 306-221-2373

E: elise@mortgagecentre.com


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