Lender Disclosure
Understand lender disclosure in Canadian real estate, what it includes, why it’s legally required, and how it protects mortgage borrowers.
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
- Broker Disclosure
- Mortgage Application
- Prepayment Penalty
- Interest Rate
- Loan Origination
An overview of Hedge Road Landing. (Alliance Homes)
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.