When you first purchased your home, you most likely used a lawyer to complete the transaction. When you do your renewal or if you are considering refinancing, you may be able to complete the transaction without a lawyer, using First Canadian Title (FCT).
Renewals
If you decide to renew your mortgage with your current lender, you will not require a Lawyer or FCT to complete the transaction. This is because your current lender and mortgage are already registered to the property title. If you decide to renew your mortgage with a different lender, your renewal then becomes what is known as a ‘switch’ in the mortgage industry, and FCT is often an option offered.
Refinancing
When refinancing your mortgage (which involves dissolving your mortgage and replacing it with a new one, even if you are not changing lenders), you are given the choice to use FCT or a Lawyer depending on your preferences.
Pros and Cons?
FCT
- significantly less costly
- costs sometimes covered by lender for a new mortgage
- able to offer additional flexibility in meeting dates/times
- provides insurance to protect lenders against various risks, such as title defects, liens, and fraud
- one fee for all payouts (mortgages/loans/cards)
Lawyer
- faster than FCT if in a time crunch
- more costly
- able to offer legal advice in addition to facilitating the transaction
- charge per payout