Negotiating mortgage terms

The focus of this guidance note is negotiating covenants that may be of concern.

A covenant is an agreement creating an obligation contained in a deed or land title. Generally, promises in a mortgage are referred to as covenants. There are a number of covenants that may be found in the mortgage (or in a collateral document, such as the loan agreement) that may be of particular concern to a mortgagor, and which the mortgagor might seek to have removed before entering into a mortgage transaction.

This guidance note identifies the common examples of such covenants, and assists legal practitioners to negotiate them via the provision of commentary and practice tips.

See Negotiating mortgage terms.