Financing

While your lawyer is completing his initial searches, it is your responsibility to make necessary arrangements for financing. You should have decided, prior to signing the Agreement of Purchase and Sale, the amount of financing you will qualify for and the amount you will require to complete the transaction. There are a number of expenses that you may not expect on the day of closing that relate to mortgage financing. Your lawyer should advise you of these costs when the financial institution that you chose provides you with a Mortgage Commitment Letter. Prior to signing the Mortgage Commitment Letter it is advisable that you consult with your lawyer to review the contents of the letter and the results of signing it.

Once you have signed the Mortgage Commitment Letter you should provide your lawyer with a copy of it. Your financial institution will provide the lawyer with a copy of the Mortgage Commitment Letter and ordinarily your financial institution will allow your lawyer to act on their behalf as well, in order to reduce your costs. Ensure that you notify your financial institution of the name, address, phone number and fax number of your lawyer as soon as you have arranged the financing.

If your solicitor is acting on behalf of the financial institution, he will be provided with a package prepared by them together with instructions and conditions with respect to the mortgage. Your solicitor will prepare all necessary documentation for the mortgage and will be required to submit them to the financial institution for approval prior to closing. Your solicitor must ensure that all conditions of the Mortgage Commitment Letter are met and must also certify title of the property the financial institution on closing.

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