We are all faced with many questions when our mortgages are up for renewal:
1. Should I stay with the same mortgage company?
2. Should I increase my mortgage to payout some unsecured/secured debt?
3. Will I get a better rate if I change my mortgage company?
The following information will help you through each process, let you know what to expect, and the steps you will need to take.
Stay with the Same Company and Renew
If you decide to stay with the same mortgage company, your mortgage company will provide you with a renewal form from 1 – 3 months before your term is up for renewal. They will advise you of any interest changes and the amount owing should you decide to pay out the mortgage or switch to a different lender. Whenever a mortgage is up for renewal we would suggest researching the interest rates at other lenders as you may be able to get a better rate and negotiate a better rate with your current lender. Always remember it is better to begin the process as soon as you receive the renewal
notice as it will give you enough time to do your research and decide the best route you would like to take. A lawyer’s office is not usually involved with this scenario.
Increase Mortgage Amount or Switch to New Mortgage Company
Should you decide to change your mortgage company or refinance your mortgage and increase your principal amount to payout outstanding unsecured debt (ie. credit cards) or secured debt (ie. car loan). Make sure you discuss what you would like to payout or paydown with your mortgage broker or mortgage lender. You should also have all your recent statements ready so you know approximately how much is owing on each debt you would like to payout. In most cases, your mortgage company will need you to hire a lawyer to assist you with this process. Once the mortgage company has instructed
your lawyer with the documents they will need and provided them with instructions on what needs to be paid out, your lawyer’s office will contact you to make sure the instructions they received are correct. Our legal fee for handling mortgage refinancing is $750.00 plus disbursements and GST. The disbursements will vary depending on how much your principal mortgage amount is and how many debts there are to payout. Our typical turnaround time for mortgage refinancing can be anywhere from 2-3 days or 1-2 weeks, depending on your lender and what debts need to be paid out. It is always best if you have all your up-to-date statements available and a Real Property Report with Compliance (if your property is a house or a bare land condominium). If your property is a condominium, please be aware that there will be the extra cost of obtaining an Estoppel Certificate and Certificate of Insurance (confirmation you are up-to-date on your condominium fees) as all lenders require this.
When the closing date (funding date) arrives, our office typically pays out all debts instructed by the mortgage company and client, submits documents for registration at the Alberta Land Titles Office and then deposits any excess mortgage funds to the client’s account (as instructed by the client). Once we have obtained confirmation of registration from the Alberta Land Titles Office, we will send a full reporting package (enclosing all documents you signed at your appointment and your new title).
We like to make this process as smooth as we can for every client. We are here to help you navigate your refinance – contact us.