Mortgage Blog

Why Do I Need a Lawyer When Getting a Mortgage?

September 7, 2018 | Posted by: Brandi Pierik and Matthew Pierik - Red Deer and Calgary Mortgage Brokers

Why Do I Need a Lawyer When Getting a Mortgage?

Since buying a home is among the largest financial investments you’ll make throughout your lifetime, it’s important that the proper financing process is followed and you fully understand your obligations as a borrower. If you’ve ever had a mortgage, you’ll remember the stack of paperwork you’re directed to review before you sign. And, if you are a first time home buyer, you’ll quickly understand why you must set an appointment with your real estate lawyer to take care of all the signing.

As your Red Deer Mortgage Broker, as much as I can explain what all the mortgage rates, terms and details contained within your mortgage agreement mean, when it comes time to sign, it’s your real estate lawyer who will go over the final details before you enter into the binding agreement.

Lawyers understand the way lenders draft mortgage documents and what to look for from a legal standpoint to ensure your best interests are always front and centre. Your lawyer will review: Specifics surrounding your mortgage loan; Security you’re providing to the bank in exchange for the loan (down payment); Lender’s standard charge/mortgage terms (including what recourse the lender can take if you fail to make your mortgage payments or other payments, such as property taxes, on time); and What’s currently listed on the home’s title.

Among the documentation you’ll sign at your lawyer’s, expect to see:
- Direction to the lender instructing where the money being loaned must go (eg, to pay creditors, if applicable, or in full to your lawyer’s trust account)
- Lender’s standard charge/mortgage terms
Title insurance statutory declaration

Your lawyer’s job is to also ensure that any outstanding mortgages are paid out using the money included in the new mortgage and then discharged from the title to your property.

Have questions about what to expect during mortgage signing with your lawyer, or your Red Deer mortgage in general? Answers are just a call or email away!

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