Real Estate

Is it necessary to hire a lawyer for mortgage lender switching?

  • Last Updated:
  • Jun 21st, 2019 11:52 pm
Newbie
Jul 31, 2018
94 posts
155 upvotes

Is it necessary to hire a lawyer for mortgage lender switching?

My term will end in August and I’ve got pre-approved for switching the loan to hsbc. They ask me to find a lawyer or notary to handle legal staff. Can I skip the lawyer and do it on my own? I will simply review the key features and sign everything they give me. Should I go cheap on this matter?
10 replies
Deal Fanatic
Jan 15, 2017
5750 posts
6123 upvotes
Ottawa
You absolutely cannot do it on your own as the mortgage has to registered against your home's title. What province are you in? I know in BC you can have a notary take care of it. In ON, it has to be lawyer as only lawyers have access to the land title registry.
Deal Addict
Nov 16, 2011
1535 posts
1256 upvotes
Hamilton
Come on, a house is the biggest purchase a person makes in their lives and you want to cheap out on something that important ???????

If you want to cheap out, shop for a cheap lawyer.

Where are your priorities .....................
Sr. Member
May 3, 2013
760 posts
475 upvotes
Toronto
luckystrike1 wrote: Come on, a house is the biggest purchase a person makes in their lives and you want to cheap out on something that important ???????

If you want to cheap out, shop for a cheap lawyer.

Where are your priorities .....................
I think OP's question is very valid. Just because a house is probably the biggest asset a person has doesn't mean one should splurge on it.

Your reply is excellent, a "cheap" lawyer should be able to register the mortgage just as effective as a cream-of-the-crop one can.
Newbie
Jul 31, 2018
94 posts
155 upvotes
I’m not buying a new house. I already paid the full legal fee when I purchased it. Why do I need to pay it again just for switching an existing mortgage? Shouldn’t it already be automated in the age like this? It’s only manual work which doesn’t require any expertise.
Newbie
Jul 31, 2018
94 posts
155 upvotes
Thanks for the references. Al though they are all posted by lawyers, so they really don’t say much over this matter.
Deal Fanatic
Jul 3, 2011
6517 posts
3798 upvotes
Thornhill
When someone buys a property that will be mortgaged their lawyer also acts for the mortgage lender.

If the HSBC 's internal lawyer is preparing the mortgage documentation they may all you need and if so they'll give you the usual 'you should seek independent advice' blurb first.

Check with the lender.
Member
Jan 16, 2008
345 posts
137 upvotes
Chatham
OP, sound like a mortgage renewal, albeit different lender (HSBC). If HSBC demand/require this, then you should get it done. I don't understand how your term end and pre-approval is related. I always thought pre-approval is for new purchase, and (current mortgage) term end is for existing property (that you purchased already). But, if I remember correctly, for mortgage renewal, I didn't need/required a lawyer for this (dealt with RBC/TD and other lenders also).
Deal Guru
User avatar
Feb 2, 2014
11233 posts
3350 upvotes
Toronto
yughred wrote: My term will end in August and I’ve got pre-approved for switching the loan to hsbc. They ask me to find a lawyer or notary to handle legal staff. Can I skip the lawyer and do it on my own? I will simply review the key features and sign everything they give me. Should I go cheap on this matter?
The point of the lawyer isn't to simply review stuff. They do a lot more than that for transfers (including title searches, receiving funds and paying out the current lender...).

Having said that, most lenders cover legal fees for transfers. HSBC really sucks when it comes to getting them to cover stuff.

Also, for transfers, you don't get pre-approved. Pre-approvals are when you're looking to buy a property and need to get pre-approved to determine your affordability. Lenders just approve you for transfers.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Jul 31, 2018
94 posts
155 upvotes
Okay, maybe it’s not called pre-approval. It’s approved with conditions. They give me $1000 as welcoming bonus. I guess it’s another way to cover legal and appraisal fee. Although other big banks (eg Scotia, BMO) will probably give you the bonus and cover legal fees. But their rates really suck. HSBC’s Rate is among the best that can be found on the market now. And they are more reputable internationally.

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