Mortgages and Refinancing
When should I secure financing for the deal?
It is strongly recommended that you meet with your bank or financial lender before you start shopping for a home. This is not only important for determining your budget, but also because mortgage approval is generally the longest contingency to satisfy in an Agreement of Purchase of Sale. Obtaining pre-approval on financing can make the process less stressful and more streamlined.
Are there any special requirements my lender will require before closing?
Once you are approved for a mortgage, your lender will require you and your lawyer to satisfy a number of conditions prior to advancing the funds. These include:
- Proof of your identity with two supporting pieces of identification, one of which must be government issued with a photo;
- A fire insurance binder for the property (not required for a condominium);
- Title insurance, if required; and
- A Status Certificate will also be required if you are purchasing a condominium.
When you are selling your property, you will need to provide your lawyer with details of any mortgages or lines of credit secured against the home as these will need to be discharged upon closing. A mortgage payout statement will be obtained to show exactly how much is outstanding on your mortgage and what penalties, administration fees, discharge fees, etc. will be charged to release you from your mortgage.
Closing – When will I receive my keys? My sale monies?
These are probably the two most frequently asked questions on a purchase and sale. There are a sequence of steps that must occur before the deal can close. As a result, it is very difficult to predict exactly when the funds can be released or when the keys are available for pickup. It is often mid-afternoon by the time the transaction is complete.
