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Tag: closing costs alberta

  • Five tips for a quick closing to your mortgage refinance

    Five tips for a quick closing to your mortgage refinance

    If you are closing your mortgage refinance, you’ll likely be required to use a lawyer or a title company to close your new mortgage.

    Refinancing a mortgage means paying off an existing loan (mortgage) and replacing it with a new one.  In most scenarios, your new lender may be a different institution than the one that holds your current mortgage and part of the amount you borrow may be used to pay off your existing loan to your current lender.

    Closing mortgage refinance delays are not uncommon and are caused by a variety of factors.  There are, however, multiple things you can do to ensure your mortgage refinance closing happens seamlessly and on time.  Here are some of them:

    Have valid government photo ID

    Since the beginning of the pandemic, many Canadians have not had the opportunity to renew their drivers’ license or passports. 

    While there has been a grace period during the pandemic, a valid government-issued photo ID is required.  If you are planning to close on a property or a mortgage, an expired drivers’ license or passport will not be accepted.  

    Ensure you provide updated debt statements

    If you are refinancing to consolidate debt, your lender may require your lawyer or title company to pay off your debtors out of the proceeds of your refinance.  For your debtors to be paid and to avoid accumulating additional interest, you will likely be asked for the latest statements for each debt.

    If you’ve already provided these statements to your mortgage agent or bank, you may be wondering why you may need to resubmit them again.   Occasionally the mortgage application to approval process may take weeks.  If a statement is out-of-date, the balances to be paid may be incorrect.  Therefore, you may need to obtain statements again for the purpose of closing.

    Statements must contain key items such as your name, your account number, and your most recent balance to be processed.  Most statements can be obtained online through online banking or by calling the company.  It may be a tedious process, but the quicker you can obtain the statements, the quicker your refinance can close and the impact of consolidating debt takes effect.

    Provide your lender with lawyer’s information

    Your lender will require your lawyer’s information to send mortgage instruction to the lawyer’s office.  In most cases, this information will be required when you sign your new mortgage commitment.  Delaying providing your lawyer’s coordinates and contact information to your lender may delay your closing.

    Schedule closing off peak

    Real Estate and Mortgage transactions peak from April through September and because purchases and sales have a firm deadline, chances are your refinance closing may get delayed.  If possible, choosing a closing date in the beginning or the month will increase the chances of your mortgage refinance closing on time.

    Close virtually

    Virtual closing is now an option in most Canadian provinces.  Quite simply, it means that you can sign your closing documents from the comfort of your home, without having to go into a lawyer’s or notary’s office.  

    A virtual closing isn’t only a convenient option, but when it comes to accelerating the closing of your mortgage, it eliminates a lot of the back-and-forth scheduling and time constraints required to book an appointment.   When you use Deeded, our virtual closing experience can be completed in the evenings and even on weekends.

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  • Can you close your Alberta property from out-of-province?

    Can you close your Alberta property from out-of-province?

    Compared to Real Estate markets like Ontario and British Columbia who have seen overwhelming increases in home prices in recent years, Alberta’s Real Estate market remains relatively affordable for Canadians.  With a lower average home price, Alberta Real Estate also generates plenty of investment opportunities with positive cashflow and has become a popular destination amongst Real Estate investors.

    When it comes to closing your Alberta property, you’ll need to use an Alberta-licensed Real Estate Lawyer to close your transaction.  If you are out-of-province aren’t physically located in Alberta yet (perhaps you’re still in the process of moving or buying an investment property and reside in another province), your closing may either involve travelling to Alberta to sign your closing documents or hiring an additional lawyer or notary that is local to you, to witness the signing of your documents.

    Alberta saw more new residents and Real Estate investors in 2021 than any other province in the country.  If you are one of the many people who are considering relocating to Alberta or buying an Alberta investment property, here are some key things that you need to know about the closing process in Alberta and how our team at Deeded can make your Alberta property closing seamless and affordable.

    Both travelling to Alberta and hiring an additional lawyer can add to the costs, and complexity of closing your Alberta Real Estate transaction.  At Deeded, our virtual closing process helps you avoid both travel and the additional costs.   Here’s how it works:

    1. Initiate your closing by getting a quote through our website and uploading your Alberta purchase contract.
    2. Our friendly team will get in touch to explain the closing process and answer any questions you may have.
    3. An Alberta Real Estate Lawyer will work with you and your bank and/or mortgage broker to get your mortgage proceeds (if applicable).  You can seamlessly deposit your down payment funds into the lawyer’s trust account at any Canadian branch of TD bank.
    4. When it’s time to sign your closing documents, you’ll meet your Alberta Real Estate lawyer via secure video conference to sign your documents.
    5. Once your property is registered, they will arrange transfer of keys to you or your property manager.
    6. You can track the entire process through a user-friendly, personalized portal so you always know what’s next.

    What are the benefits of a virtual closing process for Alberta Real Estate?

    You’ll typically save time and money by not needing to travel to Alberta to sign your closing documents and avoid the additional costs of hiring an additional local lawyer to witness you signing your closing documents.   A virtual closing is secure, seamless, and efficient.

    Can you close properties in all cities within Alberta?

    Yes.  Whether your property is in Calgary, Edmonton, Medicine Hat, or anywhere else in Alberta, we can help you close.

    Do I physically need to be in Alberta to sign closing documents?

    No.  You can be anywhere in Canada.  All you need is a computer with a video camera and a reliable internet connection to attend your virtual signing appointment.

    I’ll be moving to Alberta.  Can you help me close my sale as well?

    Absolutely.  If your current property is anywhere in Ontario or British Columbia, we can help facilitate the closing of your sale, along with your Alberta purchase. 

    Can you help me refinance my Alberta investment property?

    We certainly can.  The same virtual process and benefits apply when you’re refinancing your Alberta property. Simply ask your lender or mortgage broker to use Deeded to close.

    Are there extra costs for this service?

    We certainly can.  The same virtual process and benefits apply when you’re refinancing your Alberta property.   Simply ask your lender or mortgage broker to use Deeded to close.

    How do I get started with closing?

    Simply click here to submit your information and purchase contract.

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  • Does Alberta have a land transfer tax?

    Does Alberta have a land transfer tax?

    If you’re considering moving to Alberta or buying an Alberta investment property, the question if Alberta properties are subject to a land transfer tax (or property transfer tax as it may be called in some provinces), comes up quite often.

    Does Alberta have a land transfer tax? The short answer is no.  While most Canadian provinces levy a property or land transfer tax, Alberta requires only Land Transfer Registration Fees and Mortgage Registration Fees to be paid.

    The amount of these fees is much smaller when compared to other provinces.  Here’s a breakdown of the fees you can expect:

    • The Land Transfer Registration Fee costs a base of $50 and an additional $2 for every $5000 in property value.
    •  If you have a mortgage on your property, a Mortgage Registration Fee applies and costs a base of $50 and an additional $1.5 per $5000 on the mortgage amount.

    It's important to note that these fees and any legislation regarding land transfer taxes or applicable closing costs may change at any time. Always check with your lawyer or real estate professional prior to signing an agreement.

    For example, a $300,000 Alberta property with a $200,000 mortgage would cost:

    • Land transfer registration fees:  $170
    • Mortgage registration fees: $110

    These fees tend to be a small fraction of what a homebuyer could potentially pay for Land Transfer Taxes if buying a property in Ontario or British Columbia, making Alberta an attractive and cost-efficient place to purchase a property.

    If you’re purchasing or refinancing a property in Alberta, the Deeded team can help you close your transaction seamlessly with our virtual process.  You can sign your documents virtually from anywhere in Canada, saving you from having to travel to Alberta or retaining a second lawyer locally to witness your document signing.  

    Getting your Alberta closing process started is simple.  Click here to get started, upload your purchase contract, and we’ll get you on your way to owning your Alberta property.

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  • Closing costs for refinancing your mortgage

    Closing costs for refinancing your mortgage

    With record low interest rates, more homeowners are refinancing their mortgage.  One question we get very often is what the closing costs are for refinancing a mortgage.

    Before we break it down further, you may be caught by surprise that you even need to “close” your mortgage refinance.  You likely remember having to close your home purchase, but refinancing your mortgage? The short answer is, you have to close your mortgage refinances as well. Here's why.

    Refinancing a mortgage means paying off an existing loan (mortgage) and replacing it with a new one.  In most scenarios, your new lender may be a different institution than the one that holds your current mortgage and part of the amount you borrow may be used to pay off your existing loan to your current lender.

    When you refinance your mortgage, your new lender approves your mortgage application and issues a mortgage commitment. At that point, the closing process kicks off and includes formalizing your new mortgage, while paying off your old mortgage from the proceeds of the refinance.

    The mortgage refinancing closing process resembles some steps you may remember from purchasing your home. 

    Namely the title for the property is searched to verify your ownership, you will sign documents for your new mortgage, writs or court orders against the homeowners are searched, your current mortgage gets paid off and discharged and your new mortgage gets registered on title. Your lender may require a title insurance policy as well. When all these steps are done, the remaining funds are distributed as applicable.

    At Deeded, we can help you close your mortgage refinance seamlessly from the comfort of your home.  Get started by getting a free quote.

    Completing these tasks is usually done by a lawyer, notary, or title company and the closing costs for refinancing your mortgage, in most cases, is paid for by the homeowner (or borrower).

    The closing costs for refinancing your mortgage can vary from province to province and can depend on factors such as the number of mortgages on the property, lender conditions, government fees, registration costs and others.  Depending on the circumstances, a mortgage refinance may also require Independent Legal Advice (or ILA for short), for one or more of the borrowing parties.

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  • 3 Questions You Need to Ask Your Alberta Real Estate Lawyer

    3 Questions You Need to Ask Your Alberta Real Estate Lawyer

    If you just firmed up your purchase or sale (Congratulations!), you’ll likely need to choose a Alberta Real Estate lawyer to facilitate your closing.  

    No matter which lawyer you choose, asking the right questions before moving forward with having the lawyer (or law firm) who is going to handle your transaction can make the entire experience smoother and more predictable. 

    Here are some questions you must ask any Alberta Real Estate lawyer when buying or selling a house:

    What Are the Fees, INCLUDING Disbursements?

    Legal fees are the professional fees your lawyer charges for completing your real estate transaction. In addition to legal fees, disbursements are third-party costs paid by your lawyer in connection with completing your transaction. Disbursements usually include costs such as land title fees, tax searches, title insurance, and courier costs.

    Can I Sign My Documents Virtually and How Do You Conduct Your Virtual Meetings?

    An Alberta Real Estate lawyer can now witness real estate closing documents remotely. This means you can meet with your lawyer through video-conferencing to have your closing documents signed and witnessed. However, not all lawyers conduct virtual signing meetings in the same manner.

    At Deeded, virtual signings are easy, efficient and client friendly. Our lawyers can remotely witness Alberta real estate closing documents regardless of where you are located, either inside or outside of Alberta.  All you need is a computer or tablet with a webcam, an internet connection, and a mobile phone.

    What is Your Process?

    Home buying/selling is exciting but can also be one of the most stressful experiences of your life. Whoever you choose needs to be able to explain the closing process so that you can anticipate what is required and know what to expect.

    At Deeded, our goal is to make the process as smooth and seamless as possible. Our welcome package provides you with everything you need to know about the home closing process. Further, at every stage of the transaction, we will let you know what’s happening next. If you have any questions during the process, please do not hesitate to call, email or text us.

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  • Virtual Real Estate Closing:  Here to stay in Alberta

    Virtual Real Estate Closing: Here to stay in Alberta

    Since the Covid shutdown, lawyers have been able to witness real estate closing documents remotely and that includes virtual Real Estate closings in Alberta

    A virtual real estate closing means you can meet with your lawyer through videoconferencing to have your closing documents signed and witnessed instead of having a face-to-face meeting with your lawyer and signing documents with 'wet ink'. At Deeded Law, we leverage the latest technologies to make virtual signings easy, efficient and client friendly.

    The Alberta government recently decided to allow remote witnessing to continue indefinitely.

    How Does a Video Conference Signing Work?

    At Deeded Law, our lawyers can remotely witness Alberta real estate closing documents regardless of where you are located, either inside or outside of Alberta. All you need is a computer or tablet with a webcam, an internet connection and a mobile phone.

    Prior to the meeting, we will obtain your written consent to proceed with a video conference signing and to take screen shots of you and your identification. We will also get a copy of your government issued identification and provide any original documents required to be signed.

    To ensure confidentiality, we encourage you not to have anyone else present in the room during the video conference. During the meeting, you will be required to show the same identification previous sent to us. The lawyer will take “screen shots” and compare the photos on the identification with the individual on the video.

    After witnessing you sign your documents, you will send us a PDF version or photograph of any originally signed documents. Only originals documents are required to be returned via courier using the provided
    return address label.

    You will receive an electronic version of all executed and sworn documents as part of the final reporting package, to keep for your records.

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