Lender Disclosure

Understand lender disclosure in Canadian real estate, what it includes, why it’s legally required, and how it protects mortgage borrowers.

Lender Disclosure

May 30, 2025


What is Lender Disclosure?

Lender disclosure refers to the legal obligation of a lender to provide transparent information about the terms, costs, and conditions of a mortgage or loan agreement.

Why Does Lender Disclosure Matter in Real Estate?

In Canadian real estate, lender disclosure protects borrowers from hidden fees, interest rate changes, and unfavorable terms.


Lender disclosures typically include:
  • Interest rates (fixed or variable)
  • Prepayment penalties or privileges
  • Mortgage term, amortization, and payment schedule
  • Fees such as appraisal, underwriting, or legal costs



Federal and provincial laws (e.g. the Cost of Borrowing Regulations) require disclosures to be presented clearly and in writing.



Understanding lender disclosure helps borrowers compare offers, avoid surprise charges, and make fully informed mortgage decisions.

Example of Lender Disclosure in Action

The borrower receives a disclosure statement outlining their interest rate, term, and penalties, helping them choose between lenders.

Key Takeaways

  • Explains mortgage terms and costs.
  • Required by law to protect borrowers.
  • Includes rates, fees, and conditions.
  • Enables accurate lender comparisons.
  • Prevents hidden charges or surprises.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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