A pre-authorized debit form (PAD form) is a form that is produced by your financial institution in lieu of a void cheque. It will have your name, along with your banking details. This form will be used to set up automatic payments from your account.
When obtaining a mortgage, this will be required by your solicitor and also often by your Mortgage Broker. It is important to note that some lenders also require that your financial institution stamp the form when the provide it to you (so it is best to ask for this if you are requesting one in person).
There will also be a separate form provided by your lender which gives them authorization to withdraw your mortgage payments directly from your account.
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I am very Glad to see your informational Post! Many people are under the false assumption that it is expensive to use a mortgage broker. In fact, most brokers do not charge any fees because they are paid by the banking institutions for bringing them in business.
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