After signing a mortgage commitment for a new condo in Toronto, Maria, a client of ABC Mortgages, realizes she made a hasty decision and has found a more suitable option from another lender. Is there typically a legislated 'cooling-off period' during which she can cancel the mortgage commitment without penalty in Canada?

Question: After signing a mortgage commitment for a new condo in Toronto, Maria, a client of ABC Mortgages, realizes she made a hasty decision and has found a more suitable option from another lender. Is there typically a legislated 'cooling-off period' during which she can cancel the mortgage commitment without penalty in Canada?

Answer options:

• Yes, all mortgage commitments automatically come with a 10-day cooling-off period under federal law. ✅ No, there is generally no legislated cooling-off period for mortgage commitments in Canada.
• Only if the mortgage commitment was signed electronically, a 7-day cooling-off period applies.
• A cooling-off period exists, but only for first-time homebuyers and lasts for 5 business days.

Correct answer: No, there is generally no legislated cooling-off period for mortgage commitments in Canada.

Explanation: Unlike some other consumer contracts, mortgage commitments in Canada generally do not have a legislated cooling-off period, meaning a signed commitment is typically binding.