The Five Keys That Are Found In A Mortgage by real estate expert Kathy Mendham-Meathrel

There are items that I like to call the keys that are found in a mortgage. When discussing a mortgage, these are very important to understand. In our discussion we are going to talk about the responsibilities of both the mortgagor and mortgagee.

Key # 1 – Pay the main or principal mortgage debt.

This is one of the agreements that must be met by the person that is purchasing the house in London Ontario. This person is also known as the mortgagor. So basically this is saying that if you go to purchase a house in London Ontario and then borrow money, then it is your responsibility to pay the principal part of the debt.

Key #2 – Keep insurance

This key states that if you borrow some money for a mortgage, then it is your responsibility to carry insurance on your home in London Ontario and it must at least be insured against fire. Again, these are the responsibilities of the person purchasing the home or property in London Ontario.

Key #3 – Demolition

This third key protects the mortgagee if you decide that you want to tear your property in London Ontario down and start all over again. Basically you can’t do that without getting permission from the mortgagee first.

The question then becomes what happens if the mortgagor is unable to follow through on either one of these keys. If this is the case, then the mortgage agreement contains two keys that support the mortgagee.

Key #4 – The default key

This says that all of the costs involved with making a payment will have to be paid immediately if the mortgagor does not pay his monthly payments.

Key #5 – The foreclosure even

This key allows for the bank to do something if the monthly payment is not paid. This states that the mortgagor or the person living in the home in London Ontario will agree to a receiver if the mortgagee has to foreclose on the house in London Ontario.

There is a lot of free information available to you about buying, selling or investing in London Ontario real estate. For complete information about the London Ontario real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything London Ontario real estate at www.kathymm.ca. Please feel free to contact me with any of your real estate or mortgage related questions and I would be more than glad to answer your questions.

Kathy Mendham-Meathrel
Sales Representative
Realty Executives Elite Ltd. Brokerage
London Ontario Real Estate Agents
7-515 Wellington Road South
London Ontario
N6C 4R3
(519) 649-6900

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 Tags: London Ontario Real Estate, London Ontario real estate agents, London Ontario Foreclosed Homes

Article's Author

Kathy Mendham-meathrel
Realty Executives Elite Ltd Brokerage
London, ON

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