
Insurance requirements
What is it?
Commercial Insurance is a contract between an insurance company and a customer for a specified period. The insurance provides protection against risks associated with the physical structure and operating the property as a business.
First National insurance requirements include:
- Fire insurance
- Rental insurance (Loss of Income)
- Boiler and Machinery/Equipment Breakdown
- Flood and Earthquake insurance
- Water and Sewer Back up coverage
- Commercial General Liability insurance
- All Insurers must have an A.M rating of B+ or better
Why is it important?
Insurance helps to ensure that:
- The Borrower maintains adequate coverage to protect himself and the Lender
View our other mortgage servicing areas
Financial requirements
Undertaking
Property tax
Payments, pre-payments and banking changes
Mortgage information

Your commitment letter
The commitment is a contract between First National and the Borrower. First National uses this commitment as the source for all decision making throughout the duration of the mortgage amortization period. The commitment covers everything from payment type (fixed, floating, amortizing, interest only), pre-payment parameters, insurance requirements, type of annual review documents to be collected, undertaking requirements, etc.
Why is it important?
It is important to note that the commitment is attached to the mortgage (rather than the borrower) for the entire amortization period.
- If the loan is assumed the current Borrower is replaced by the Purchaser of the property.
- If the loan is renewed the terms and conditions of the commitment are extended for a new term in accordance with the renewal agreement.
- If the loan is refinanced the terms of the existing commitment is discharged and new terms are registered with the mortgage.