Mortgage payments can sometimes be a tricky topic for some homeowners, leading to confusion about when payments are due and what time period they cover.
Recently, we watched two client misunderstandings unfold, highlighting the need for clear, calm communication. Let’s delve into their cases and clarify why mortgage payments are made in arrears, not in advance.
Note to our readers: For client privacy, the names of the subjects in this story have been changed. The values mentioned in this story are accurate and true. The case studies in the article below are presented to educate Canadians regarding mortgage payments and their timing.
Case study 1: Agatha’s private mortgage confusion
Agatha accepted a 1-year private first mortgage on May 31, 2023, providing 12 post-dated cheques from July 1, 2023, to June 1, 2024.
When her lender…
