Skip to main content

What is a PAD form?

By
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.

www.christinebuemann.ca



Comments

  1. AnonymousAugust 7, 2022 at 9:01 AM

    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.

    ReplyDelete

Post a Comment

Popular posts from this blog

Who is Computershare and why are they registered on title?

By
If you are using a non-bank lender for your mortgage, you may notice that your mortgage has been registered in the name of “Computershare Trust Company of Canada”. This registration does not affect the terms and conditions of your mortgage in any way. Computershare holds no beneficial interest or rights to the mortgage loan. This is merely a third party, custodial arrangement which means that your lender has used Computershare to review the mortgage and provide custodial certification to Canada Mortgage and Housing Corp (CMHC) for their government securities program. Computershare is the largest provider globally of many of the services they offer and the largest corporate trust service provider in Canada. They have successfully provided this custodial service to many Canadian bank and non-bank lenders for many years and they play a very important role in the Government of Canada’s NHA Mortgage-Backed Securities Program. Computershare has served as the exclusive Central Payor and Tr...
28 comments
Read more

How to Save Thousands On Your Mortgage Renewal

By
What could you do with an extra $15,000? If I were to offer you a cheque for $15,000 or even $2300 in exchange for a few documents would you turn in down because it was easier to simply renew your mortgage at your current lender? There are numerous published reports that confirm that most borrowers simply sign and return their bank's offer letter upon their mortgage renewal. More often than not, the rates they offer you are not the lowest available rates and they are definitely not as low as a Mortgage Broker could get you. If you take it upon yourself, you may very well be able to negotiate a better rate with them but how will you know if it is the best you can get? Here is an example… If your lender is offering you 4.24% for a 5 year fixed on a $250,000 mortgage* you would be paying roughly $15,600 more in interest than the standard 2.89% that most brokers are offering for the same term.    Now let’s say you negotiated with your lender and they were willing to drop you...
4 comments
Read more

Did you know that we can refinance up to 95% in order to remove someone from title?

By
Did you know that we can refinance up to 95% in order to remove someone from title?  Not only are we seeing more separations than ever, we are also seeing more co-signing required from family. This means that we needed a simple and useful too for removing one person from title, without being limited to the 80% refinance rule . Here is what you will need: A purchase agreement confirming the current value Current mortgage statement A legally binding agreement by the two parties detailing the buyout For more information on this or if you have any questions or concerns - please feel free to contact me. www.christinebuemann.ca 
13 comments
Read more