Don't let your Mortgage Maturity Date surprise you in Nova Scotia
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Last Minute Rush Refinances are Usually Unnecessary
Our law firm often gets panicked correspondence from a mortgage broker or a client asking if we can do a refinance in a "rush" when people have left their mortgage renewal or refinancing with a new lender until the very last minute. This is putting unnecessary pressure on everyone involved in the process, not the least of which being the client, and it does not have to be like that.
Know Your Maturity/Renewal Date
Your maturity/renewal date on your mortgage should not be a mystery. It is in your paperwork when you get your mortgage - put it in a calendar or a reminder, or check periodically to remind yourself.
Refinancing is not something you “just do” in a couple of hours. In Nova Scotia the process requires your lawyer to get:
the old mortgage payout statement from your current bank, which can take several days (the window the bank provides can be anywhere from 3-5 to 10 business days),
current property tax certificate
payouts for any other debts you want to consolidate or are required to pay off before getting the new mortgage.
Avoidable Penalties
If you leave it too late, some lenders will lock you into a new term, even a short one. Some are flexible and will renew on an "open" term if they are on notice that you will be refinancing. However, some lenders will charge large penalties for prepayment on your new term, even though they know you intend to refinance with a new lender.
Depending on how quickly you need your refinance turned around, many law firms will also charge a ‘rush fee’ as they have to put their other work on hold to focus exclusively on getting your file taken care of.
Be prepared and make a plan
It is always best to plan ahead and touch base with your mortgage specialist or broker well ahead of your maturity date/deadlines, so that you can truly assess the best options for your next step, rather than taking on the loan from the bank that is happy to close sooner.
You can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $250+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.
By: Briana C. O’Grady J.D - Lawyer
The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. Nothing contained on this blog is legal advice or constitutes a legal opinion. While it is our goal to provide information which is current, legislative changes and court decisions, among other matters, may result in some information no longer being current or accurate. You should consult a lawyer before relying on any information. The views expressed herein by individual contributing lawyers posting entries to the blog are solely those of the authors and should not necessarily be attributed to or considered representative of the firm of Highlander Law Group Lawyers
