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Here is a list of potential Mortgage Conditions you may have to fulfill quickly along with outlining many particulars and details regarding each condition that can assist you with your document collection.

Important

Please provide ALL required mortgage documents (Conditions) as soon as possible. The Lender can take up to 5 business days and sometimes even more to accept, review and approve supporting documentation depending on their current volumes. The Lender may also add additional conditions if the documentation provided for review doesn’t meet their expectations.

If Purchasing a new property, it is critical that documentation is supplied to the Lender quickly so they may review and approve prior to your Condition of Finance [COF] Day as outlined on your Purchase Agreement. We MUST work together to ensure ALL the Financing Conditions are submitted to the Lender quickly.

If Refinancing or Switching/Transferring, it is important to have ALL the Conditions approved by the Lender so that the mortgage can be Instructed to the Lawyer / Legal Servicing Company as soon as possible to ensure the file can be completed to meet the scheduled Closing Date.

Please provide the Outstanding Mortgage Conditions directly to Your CML Mortgage Professional.

Income Documentation

Income Documentation is a critical condition for mortgage financing as it can make or break a mortgage. To minimize this from happening, your CML Mortgage Professional collects ALL Income Documentation upfront that they feel is required by the Lender prior to your application submission to the Lender. This generally minimizes these critical documents from having to be collected after a Conditional Approval is in place. Having these documents upfront, better ensures that the best and accepted income can be used for qualifying purposes and that the income is fully supported via accepted documentation. This documentation is still subject to the Lenders review and approval so additional documentation may be required.

Down Payment Documentation

This is another critical Condition as Lenders must confirm all aspects of the funds being used for the down payment under the Anti-Money Laundering Act [AML]. If the down payment is from saved funds such as savings or investments, the last 90 days of the account transactions must be disclosed to demonstrate the accumulation of funds. If there are any large deposits during that time, they must be explained and proven. You must demonstrate account ownership. If pulling them from web banking, please send a copy of the main profile. If a Gift is being issued for the down payment, the applicable Lender Gift Letter must be completed and signed by all applicable parties and a bank statement or transaction document from the bank must be issued to confirm the deposit into your bank account. If ALL or PART of the down payment is being sourced from selling a property, you must provide the MLS Listing (Realtor Version), Completed & Signed Purchase Agreement as well as the Completed & Signed Conditions Waiver. This document confirms that ALL Purchase Agreement Conditions have been waived by the buyers and that the sale is considered FIRM. Please be advised that additional documentation may be required by the Lender depending on the source of the down payment and documents provided.

Gift Letter

If you have indicated that all or part of your down payment is being gifted by an immediate family member (Parents, Grandparents or Siblings), the Lender's Gift Letter has been included in your Conditional Mortgage Approval Package. Please Read, Complete, Date and have it signed by ALL applicable parties. Supporting Bank Account Documentation must also be supplied that confirms the gift has been deposited to the mortgage applicant's bank account. The documentation being provided to confirm the Gift's deposit must also confirm that account is owned by the applicable applicant on the mortgage. Occasionally, the Lender may request account history from the individual(s) making the gift.

Appraisal Report

If an Appraisal Report is required by the Lender, as outlined within the Mortgage Commitment, CML Canadian Mortgage Lender or the Lender will coordinate and order the appraisal to ensure all Lender Appraisal Requirements are fulfilled correctly. As the mortgage clients, you are responsible to pay all the associated costs for the appraisal. The mortgage may need to be revised based on the appraised value of the property and all appraisals must be reviewed and approved by the lender. Further details and costs of the appraisal will be communicated to you as the mortgage condition process is coordinated.

Note - Appraisal Reports are the property of the Appraiser and the Lender so a copy of the report may not be available for your viewing.

Market / Economic Rent Report

If you own a Rental Property or are converting your current Primary Residence to a Rental Property and there is not a Lender Acceptable Lease Agreement available for the rental property, a Market / Economic Rent Report may be required. This report is to be done by a Lender Accepted Appraiser. The report will outline and support a market rent amount for the subject property that will be used in the final affordability ratios for final mortgage qualifying. The Lender or your CML Mortgage Professional will order and coordinate the Market Rent Report and you will be responsible for all associated costs. Further details and costs will be communicated to you once the report has been ordered.

Note - Market Rent Reports are the property of the Appraiser and the Lender and a copy of the report may not be available for your viewing.

Final Inspection Report

If your mortgage is a Purchase Plus Improvements Product, a Final Inspection will generally be required. Once you have closed on your new property and the previously quoted Improvements are completed, a Final Inspection Report will be required. This report confirms the work described in the original quotes has been done and fully completed. This report is done by a Lender Approved Appraiser and upon confirmation by the appraiser to the Lender that the improvements are 100% complete, the Lender will advise your Lawyer that they are clear to release the holdback of funds to you. The Lender or CML Mortgage Professional will order and coordinate the report once you have confirmed the improvements have been completed. All associated costs for this report are your responsibility and further details and costs will be communicated to you once the order has been made.

Note - Final Inspection Reports are the property of the Appraiser and the Lender and that a copy of the report may not be available for your viewing.

Lawyer

If you are purchasing a home, you will require Legal Representation to complete your transaction. Your lawyer will represent you, your best interests along with preparing all the legal mortgage documentation, searches, title insurance and registration as per the Lender's Mortgage Instructions.

Your lawyer will then meet with you to review all the documentation and have you sign them and answer any further legal questions you may have at the time. The lawyer and/or their paralegal will advise you on what to bring to their office for your appointment. The common items required are:

• Remaining Down Payment
• Legal Fees
• Home Insurance Policy
• Government Photo ID
• VOID Cheque for your mortgage payments.

If you do not have a lawyer that does real estate and/or do not know one, your CML Mortgage Professional will be happy to provide a few lawyers you can contact. Legal Costs do vary from lawyer to lawyer so your CML Mortgage Professional is unable to provide any pricing for their services.

Note - If you are building a home, most Builders will pay your legal fees if you use their appointed Lawyer. This may sound like a good deal as it won't cost you anything but you should still consider hiring your own Lawyer as they will look out for your best interests not someone else's.

Legal Services Company

All mortgage financing transactions require legal services but not necessarily a lawyer. If your mortgage is a Refinance or a Switch / Transfer, a Title Insurance Company such as First Canadian Title (FCT), may be available to use. A company like FCT will handle all the legal service requirements a lawyer can provide other than advice.

The advantage of using such a company for a Refinance is that they generally offer better pricing than Lawyers as well as home signing via a Remote Signor. If you are having a Switch/Transfer completed, a company like FCT is used by the Lender for efficiency and cost.

Note - Legal Servicing Companies may not be available to use if the refinanced mortgage is being funded by a Non-Prime or Private Lender. These Lenders generally require a Lawyer.

Title Insurance [Lender]

Your Mortgage Lender will request your Lawyer or Legal Service Company to secure Title Insurance for your property. The Title Insurance requirement is generally noted within the mortgage commitment under Solicitor Conditions. This type of Title Insurance helps reduce risk to the lender by protecting them against losses associated with the priority, validity and unenforceability of a residential mortgage. It also helps guard against claims that challenge their interest in the title. This Title Insurance Policy lasts as long as this mortgage remains registered against title. There is a one-time premium charged and you will be charged for the premium in conjunction with your final legal bill.

Your Lawyer or Legal Service Provider is who coordinates and secures the Title Insurance Coverage. Please refer to your Lawyer or Legal Services Company for further information and/or pricing. For additional information, please refer to the link below:

https://fct.ca/lending-professionals/residential-title-insurance/

Title Insurance [Homeowners]

Your Mortgage Lender has requested Title Insurance on your subject property so they are protected but this coverage does not protect you as the homeowner. You should consider getting Property Owner Title Insurance so we recommend you discuss this further with your Lawyer or Legal Services Company and determine the premium cost for the coverage.

Property Owner Title Insurance has a one-time premium and protects the homeowner(s) against losses associated with Title Fraud as well as Survey and Title Issues/Defects. For further information, please refer to the following link:

https://fct.ca/property-owners/

Property Taxes

Property Taxes are municipality taxes that you must pay on your property annually. Property Taxes are calculated by the municipal government through a formula that factors in the property's Assessed Value, a Council Approved Tax Rate (Mill Rate) and in Alberta, it also generally includes a School Tax Rate. Other Taxation Fees may also be included so check with the municipality that your property is located for a more detailed list of taxes included.

When purchasing a new home, your Lawyer will make the Property Tax Adjustments based on how they stand between the municipality and the seller. Your Lawyer will detail the taxes and explain these adjustments. Your CML Mortgage Professional must advise the Lender regarding the method in which the Property Taxes will be paid by you moving forward after closing. Mortgage Lenders quite often have their own policies surrounding Property Tax Payment Methods so be sure you advise your CML Mortgage Professional how you wish to pay them so the method can be approved by the Lender.

Most Mortgage Lenders DO NOT allow borrowers to pay property taxes once annually when they are actually due. You generally must either have your Property Taxes added to your mortgage payment so the Lender will manage your Tax Roll with the municipality or you may pay them monthly directly to the municipality. This program is known as the Tax Installment Payment Plan [TIPP]. In order to apply for TIPP, you must contact the municipality and complete their application and provide a VOID Cheque for the account you wish to have them debit.

Note - Not ALL Municipalities offer TIPP so check with the municipality to see if they do. Municipalities that offer TIPP generally supply an online sign-up from their website.

Homeowner Association [HOA] Fees

It is becoming more common that properties are within a community that have Titled Homeowner Association Fees. Known as HOA Fees, these are an amount of money that is generally due annually by the community homeowners and payable to the Community Association. You may need to pay them directly to the Community Association or they may be collected via a Property Management Company hired by the Community Association. These fees vary across communities and are generally based on the services the Community Association provides to their homeowners.

When purchasing a home on the MLS Listing, the HOA Fees are disclosed. You may also want to inquire with your Realtor as well. It is recommended you look into where, when and how these fees are collected.

Note – HOA Fees differ from Condo / Strata Fees as you may have both to pay by owning the subject property.

Home Insurance

You will be required to secure Home Insurance (Personal Liability & Fire) for the property if you are purchasing a new home and if you are refinancing or switching an existing mortgage, you must advise your current Home Insurance Company of the new mortgage details. Your Home Insurance provider will require the mortgage company name, address and other contact information so they can properly list them as the Loss Payee under your policy.

If you do not have Home Insurance or are looking to potentially change companies and not sure who to contact, please let your CML Mortgage Professional know as they can provide some Insurance Agents to contact for quotes.

Note - Your Home Insurance Policy is required to be provided to your Lawyer or Legal Servicing Company when signing the final legal documents.

Conditions Removal / Waiver

When Purchasing a property and the Lender has confirmed they have all the required documents (conditions) and they have all been approved, you can contact your Realtor and discuss removing the Financing Condition in your Purchase Agreement.

Important - Upon you removing the Financing Conditions, you will be legally committed to purchasing the home. Remember, if you seek and/or secure additional credit between then and your closing date, you may put your mortgage financing in peril.

DO NOT or ATTEMPT TO borrow funds until your mortgage has fully been funded and the transaction finalized.

Once ALL Mortgage Conditions have been supplied to, reviewed by and approved by the Lender, they will move forward with "Instructing" your mortgage to the Lawyer or Legal Servicing Company you have chosen.