BY: VLADO HAJTOL
This week’s Reader asks: My mortgage is up for renewal this summer. I will more than likely switch to a different lender. Would I need to use a lawyer to finalize my new mortgage?
While some banks and mortgage companies require that their clients retain a lawyer to finalize their mortgage refinancing transaction, it is now very common that some lending institutions would rather finalize it themselves or use a mortgage processing company. Nevertheless, most lenders will still give you an option of retaining your own lawyer to finalize the transaction.
Benefits of using a lawyer:
Your lawyer will help you to review and understand complex mortgage documents, such as the mortgage disclosure statement and standard mortgage terms, and will also explain to you your rights and obligations under the mortgage.
They will make sure that your old mortgage is discharged from the title to your property. As a lawyer, I regularly see mortgages registered on title that were paid off many years ago, but have never been discharged by the bank. Your lawyer will also go through the mortgage discharge statement with you to ensure that the payout amount to discharge your old mortgage is correct.
Finally, your lawyer will make sure that the terms for the mortgage being registered on title are the same terms you have negotiated with your lender. It is not uncommon for some people to later discover that the amount of the mortgage registered on title is a lot higher than the actual amount of the mortgage they received from the lender. This can negatively affect their chance of getting a second mortgage or adding a secured line of credit from a different lender.
Are you planning on buying or selling your home this spring or summer? We would like to invite you to our real estate seminar for local residents on Saturday, May 2nd, from 10am to 11am, at our offices located at 340 March Road, Kanata. If you are interested please RSVP by visiting our website www.complellingcounsel.com or sending an email to firstname.lastname@example.org.
EDITOR’S NOTE: This publication is the 25th installment of our firm’s Legal Matters series, which answers a reader’s question every week. If you have a general legal question that you would like to have addressed please send it via email to email@example.com.