Are you one of those who will soon post the “SOLD” sign in front of your property?

If so, be sure to add the discharge fees and fees to your budget. What is a receipt? A receipt is an act by which a person to whom you owe money confirms that your debt is paid in full. 

In real estate, this implies that your lender releases your property. He renounces taking it as collateral and selling it in the event of a default. The lender is often your financial institution, and getting a discharge is the only way to assure your buyer that their new property won’t be foreclosed to pay off your debts. 

Who is responsible for obtaining it? Promises to purchase generally state that the seller is responsible for obtaining the discharge from your lender. He has to pay the related costs and fees, which usually amount to several hundred dollars. Even if it is you who pay to obtain the discharge, it is your buyer who chooses the notary who will do the deed of sale, the mortgage and your discharge. How do you get your discharge?

To obtain a discharge, the notary performs several steps: He obtains the balance of your mortgage loans from the lender. He obtains a written commitment from the lender to sign the discharge act when he receives the last sums due. He submits a draft deed of discharge to the lender once everything is fully paid off. He has the deed signed by an authorized representative of the lender. He has the signing of the deed certified by an official. He publishes the deed of discharge in the land register to let everyone know that your mortgage is inactive. On your side, you have nothing to do other than give the mandate to the notary.

Remember: Even if the buyer pays Are you one of those people who will soon be posting the “SOLD” sign in front of your property? If so, be sure to add the costs and discharge fees to your budget. What is a receipt? A receipt is an act by which a person to whom you owe money confirms that your debt is paid in full.

 In real estate, this implies that your lender releases your property. He renounces taking it as collateral and selling it in the event of a default. The lender is often your financial institution, and getting a discharge is the only way to assure your buyer that their new property won’t be foreclosed to pay off your debts. Who is responsible for obtaining it? Promises to purchase generally state that the seller is responsible for obtaining the discharge from your lender. He has to pay the related costs and fees, which usually amount to several hundred dollars.

 Even if it is you who pay to obtain the discharge, it is your buyer who chooses the notary who will do the deed of sale, the mortgage and your discharge. How to obtain your discharge? To obtain a discharge, the notary performs several steps: He gets the balance of your mortgage loans from the lender. He obtains a written commitment from the lender to sign the discharge act when he receives the last sums due. He submits a draft deed of discharge to the lender once everything is fully paid off. He has the deed signed by an authorized representative of the lender. He has the signing of the deed certified by an official. He publishes the deed of discharge in the land register to let everyone know that your mortgage is inactive. On your side, you do not have to do anything other than to entrust the mandate to the notary. Remember: even if it is the buyer qthe notary for the deed of sale, you will have to foresee sums to pay for get your receipt.

Source: Éducaloi

In the mortgage loan market, the big Canadian banks, which are well established, are in competition with so-called “virtual” lenders.

Some of these virtual lenders specialize in mortgages and offer the same services as the bank on the corner of the street, with one difference: there is no branch, since everything is done over the phone and over the internet.

In Canada, for example, there are First National Financial, MCAP, Paradigm Quest and MERIX Financial, to name a few.

Would you be afraid to borrow money from these financial institutions? In fact, there is no real reason to be afraid, since virtual lenders are governed by the Bank Act, the same that governs major Canadian banks. Plus, the process is the same as applying for a loan from the bank on your corner, except that everything is done virtually and through a mortgage broker.

In deciding whether or not to opt for a virtual mortgage lender, you have to consider the pros and cons.

Benefits

Lower costs: Virtual lenders have lower fixed costs and can lower their fees as a result. Sometimes the rates are better. But beware, this is not always the case.

Less solicitation for other products: Lenders who specialize in mortgages and have nothing else to sell will not push you to sell you other products, such as a savings account, a margin. credit or credit card.

The disadvantages

The product mix is ​​limited: You may not have access to a home equity line of credit.

Can’t pay in cash: Do you often handle banknotes? If you are considering doing business with a virtual lender, be aware that it will not be possible to stop by the counter to make an advance payment in cash.

More difficult to centralize your finances: Some people prefer to centralize their mortgage, investments and bank accounts in the same institution. But is it really a good idea to centralize everything?
By decentralizing, you could fetch better deals left and right.

In short, deciding whether or not to opt for a virtual mortgage lender, you should not stop at the interest rate. You have to consider the other loan conditions. It’s a bit like buying your home; you won’t buy the cheapest just because it’s the cheapest, since you might end up with a few little surprises …

Advice

No matter who you are dealing with for your mortgage, take the time to read the fine print on your contract.

To find a virtual mortgage lender, you can use an online rate comparator or you can call on a certified mortgage broker directly. You can validate their right to practice by checking the website of the Autorité des marchés financiers (AMF).

Everything is negotiated, even the terms of your mortgage. No matter which lender you do business with, don’t hesitate to negotiate, both with the virtual bank and with the more established bank.

information of this article Ghislain Larochelle is a professional registered with the Order of Engineers of Quebec as well as the OACIQ.