
Undertaking
What is it?
Undertaking is a guarantee given by a borrower to First National to complete mandatory repairs on the property by a certain date.
However, an undertaking is not exclusive to mandatory repairs. It may also include rental achievement, zoning, work orders, fire department inspections, property management, property tax confirmations, BCA Report, Asbestos Survey and property being leased.
Canadian Mortgage Housing Corporation (CMHC)
If the loan is CMHC insured, the mandatory repairs are outlined in Schedule B of the CMHC Certificate of Insurance (COI) Conditions.
Conventional
If the Loan is Conventional, the mandatory repairs are outlined in the Phase 1 Environmental Report or the Building Condition Report.
Why is it important?
The undertaking helps to ensure that:
- The property is being maintained to high standard
- The property is being properly managed
- Health and Safety repairs are completed to municipal standards
- No liens are registered on title as a result of non- payment of property taxes or violation of work orders
View our other mortgage servicing areas
Financial requirements
Insurance requirements
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.