Legal Insights

A mortgage is a loan that is secured against real estate. If you want to purchase a home, it is always a good idea to get pre-approved on a mortgage. The pre-approval will outline how much, based on your qualifications and personal credit ratings, the bank feels you can afford to borrow. By being pre-approved, you will then know in advance what funds you will have available in order to negotiate your purchase price.  Additionally, if the property is very desirable you can put in an offer without it being conditional on financing and then the vendors (or the party selling the property) may be more inclined to negotiate an offer of purchase with you. There are many different kinds of mortgages a person can obtain. A conventional mortgage is a mortgage that does not exceed 80% of the purchase price of the property. Accordingly, this type of mortgage does not need to be insured against default. A high ratio mortgage is a loan that needs to be insured against loss by either Canada Mortgage and Housing Corporation (CMHC), a Federal Government Corporation, or GE Capital, a private insurer. If you don't have 20% of the lesser of (a) the...

Whether you are buying a property, or selling your house, you will need a lawyer to represent you and your interests. In Ontario, the recording system for land ownership is computerized in such a way that lawyers are allowed to enter this system to change ownership over land as well as to register and delete mortgages relating to the land in question. Lawyers hold this role and are supposed to guard against fraud in order to make the system safer. The seller of the land also has to assure the purchaser that he or she is in a position whereby “good title” is transfered with respect to the land in question. In order to do so, the seller needs to understand both real estate law and procedure. The lawyer who is representing the purchaser will be aware of the appropriate concerns about the land that is in question. Lawyers will also ensure that the proper papers are prepared and signed prior to the transfer of the land. Having a lawyer helps guide you through the process of buying or selling a home, ensuring that your legal rights and financial interests are protected. The Rules of Professional Conduct have certain requirements...

Mortgages are loans that are secured against homes. There are many different kinds of mortgages a person can obtain. There are three types of mortgages: a closed mortgage, a convertible mortgage, and an open mortgage. A closed mortgage cannot be changed. In this regard, the buyer is not allowed to prepay or renegotiate the terms of a closed mortgage until the term outlined has been completed. The only way that a borrower may be able to convince the lender to alter the mortgage is by paying an interest penalty. A convertible closed mortgage is a closed mortgage whereby the borrower is able to change the mortgage from a short-term mortgage, to a long-term mortgage, depending on the financial needs of the borrower. An open mortgage is one that can be prepaid, paid off, or renegotiated at any time and in every amount without interest or penalty. Usually, even if the term in both the closed and open mortgages are the same, the interest rate on an open mortgage is higher than it is on a closed mortgage. A pre-approved mortgage is obtained before you go looking for the home you wish to purchase. It outlines how much, based on your qualifications and...

Each party (the vendor and the purchaser) to a real estate transaction needs a separate, independent real estate lawyer in order to close a real estate transaction in Ontario. In addition, you will have questions with regard to what your legal rights are and what the best way is for you to proceed with the buying and/or selling of the property. Not only will hiring a real estate lawyer relieve stress that comes along with the legal transaction, but they will also ensure that you are fully aware of the implications of your actions and aware of what you are entitled to. A real estate lawyer serves a number of roles in the legal process of obtaining and selling a property: Help you prepare the purchase contact; Ensure that you understand the purchase contact; Prepare and register all other legal documents; Negotiating terms and conditions on your behalf; and, Review contracts prior to the closing. A real estate lawyer should be involved in the process as soon as possible, so that he or she can begin to start working to protect your interests. It is suggested, however not mandatory, that you obtain a lawyer before you sign any agreements with real estate...

When one refers to the mortgage amortization period, they are referring to the amount of time that it will take until the entire mortgage debt will be repaid. The mortgage amortization period is important, as it affects the amount of interest one will be required to pay on their mortgage, as well as the amount that they will have to put down on their home when they sign the mortgage. If you obtain an amortization period of less than 25 years, then you will be obligated to pay less interest on your mortgage each month, and will be required to make monthly mortgage payments for a shorter period of time. If you choose to do this, then you will be required to put down more money when it comes to the principal balance, however this means that you will be mortgage free sooner rather than later. If, however, you choose to have a 25 year long amortization period, you would pay a larger interest rate over a longer period of time. This means that the amount owed monthly would be less, however due to the extension of the pace of the mortgage, you would end up paying a larger amount...

An offer to purchase is also commonly referred to as an agreement of purchase and sale. An offer to purchase (or agreement of purchase and sale) outlines the terms upon which the buyer agrees to purchase the property from the seller. It takes the form of a written legal contract between two parties, being the buyer and the seller. Usually, an offer to purchase is a legal document drafted by a lawyer and witnessed by a third party. That means that the contract is legally binding, and that the purchase is subject to the terms outlined in the offer to purchase. In addition, it often outlines the price upon which the buyer will buy the property from the seller. An offer to purchase can come in one of two forms. It can be firm, or conditional. A firm offer contains no conditions. The agreement is straightforward and clear cut. It outlines that the sale will take place and the way in which the sale will proceed. This type of offer does not outline specific conditions that need to be met in order to go ahead with the sale. A conditional offer is another type of offer to purchase. This type of...