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    Leasing your Primary Residence

    When purchasing a house, a bank or mortgage company will typically have a set of Standard Charge Terms (SCT) that form part of the mortgage security for the home.  If you purchase a home and later decide to move out but want to retain the home as a rental property, it is important to review the SCT to ensure that you are allowed to rent the property.

     

    Many SCTs will allow conversion from owner-occupied to tenant-occupied, but require the lender to be informed of this change.  In addition they will also require the lender to consent.  Some lending institutions may require some forms to be completed, and your interest rate may change.

    The reason why a lender reserves the right, through the SCTs, to deny you the ability to rent your home is that lenders will typically have a higher monetary investment in your home.   The lender needs to protect that investment by knowing who lives in it.  An owner-occupied home is less risky than a tenant-occupied home.

    Reading the SCT incorporated into your mortgage is one method to determine what are your rights with respect to renting your own property.  If you would like us to tell you what are your rights under the SCT, call Noah Potechin at 613-563-6692.

    The content on this website is for information purposes only and is not legal advice, which cannot be given without knowing the facts of a specific situation. You should never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. The use of the website does not establish a solicitor and client relationship. If you would like to discuss your specific legal needs with us, please contact our office at 613-563-7544 and one of our lawyers will be happy to assist you.

    Posted By: Merovitz Potechin

    Merovitz Potechin LLP has been serving the business and personal needs of the Ottawa area since 1976. Our lawyers will work directly with you throughout your legal matter.

    We are committed to asking the right questions so you obtain the best advice. We are responsive to your needs, and you can trust that we will give you the care and attention you deserve.

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