Whether you are the first time real estate buyer or refinancing an existing mortgage, one of the issues that always bothers most Canadians is the mortgage financing. In order to have peaceful transaction completed you should always consider the following steps besides others:
- Mortgage should be arranged well in advance, preferably before you sign the agreement of purchase and sale. You would know where you stand.
- Always obtain a mortgage pre-approval confirmation in writing.
- All the terms and conditions should be discussed in details specially with regard to the rate of interest, term of mortgage, whether your mortgage is open or close,variable or fixed, pre-payment and penalty clauses, CMHC fee.
- Make sure to confirm dollar to dollar amount to be adjusted towards any HST, property tax hold back, interest adjustment, first installment, etc. This would give you a fair idea of the amount of finance being sent to law office and how much, if any, you would be arranging from personal sources.
- For existing homeowner, before your mortgage is due for renewal you should check up with the existing financial institution and compare with the other institutions offer. When homeowners consider refinancing, they usually look at the interest rate of the existing mortgage and the interest rate of the new mortgage, the cost of borrowing and any accumulated equity in their homes.
- Whether you are dealing directly with the financial institution or through a mortgage broker, make sure that all the requirements and documentation are satisfied much before the scheduled closing date.,eg. proof of income, proof of funds, proof of employment, proof of cash down payment, payment of other debts obligations, if any, appraisal, etc.
- Always stay in touch with financial institution representative or mortgage broker with whom you are dealing to make sure that the mortgage instructions are sent to your lawyer well in advance of the closing date. Sometimes I have seen clients struggling up to the last moment to complete the requirements of the lender which sometimes results in delay in closing due to non availability of funds from the lender.
It is always a good idea to communicate in confidence with the concerned representative and seek his/ her guidance and opinion. .
Do not hesitate calling me or having an appointment before you finalize.
WHETHER YOU ARE FINANCING FIRST TIME OR REFINANCING BEFORE TERM OR ON RENEWAL, CONSULT WITH ME AND ANY SUCH CONSULTATION IN MY OFFICE WILL BE FREE FOR YOU.
DO NOT HESITATE TO CALL ME FOR ANY QUESTION. Please note: the information contained in this newsletter is not legal advice