Real Estate Lawyers Waterloo, Ontario

Essentially, you make up the difference between the mortgage you want and a real estate asset’s appraised value. Most real estate buyers increase their downpayment, borrow money from a credit line or credit card, or ask a lender for a second mortgage. Bridging the gap can be expensive, and depending on your resources, unrealistic. 

Not having a sense of what a house is worth compared to similar properties in the area is an assured way to get into a real estate financing bind. So are blind bids: making an offer without knowing what other potential buyers have put on the table. Fortunately, buyers could get some relief when Ontario real estate sellers opt into a proposed new open offer system. 

Regardless, look before you leap. Fast paced, hyper exciting bidding wars can lead you down a path that may not work out. Your Axess Law remote Waterloo real estate lawyer makes agreements of purchase and sale subject-to mortgage financing to give you an out if a real estate appraisal doesn’t match your offer. 

Title insurance is widely promoted as a way to protect real estate buyers from title fraud. Compared to the legal hassle of attempting to disprove a mortgage taken out by a stranger is not bona fide, and potentially have to bear up under the payments, it is well worth the modest, one-time fee. Savvy homebuyers pay between $300 to $500 to have their real estate lawyer add title insurance and are covered for the entire time they own a property. 

Title insurance has other benefits. Errors made by land registry offices, property owners, or real estate lawyers can get in the way of your ability to sell your home or add others to a real estate  title. Insurance may compensate you for problems created by errors in registering a title or inaccurate property surveys. Zoning issues, and construction liens or financial holds registered against your property as a result of unpaid or dissatisfied contractors, can also warrant filing a claim against your title insurance plan.

Liens not registered in public records, Indigenous land claims, known title defects, and environmental hazards are not covered by title insurance. Nor are zoning problems you create, such as by building a fence that sits over the property line. Your Axess Law Waterloo real estate lawyer protects you by adding title insurance when we complete your real estate purchase.

Adult-only condos were declared discriminatory under Ontario’s Human Rights Code in 1988. They violate the code’s “family status” grounds. Life lease arrangements are an exception: boards are allowed to place age restrictions on owners, who can then sell or Will their units to other seniors. Unlike freehold condos that are mortgageable, owners pay a lump sum to live in (lease) those units for life.

Unfair though it may seem, they can. Being sick and unable to work, or a drop in income because of a physical or mental disability, can definitely make your lender reluctant to renew. Your bank may be weighing your debts compared to the income information it has on file, or worried current interest rates are higher than you can afford. 

If your lender is working from old pay stubs and your income has improved, offer that information. You may have savings or investments that could be used to reduce the mortgage, and lower your monthly payments that way. You could even ask a family member or cohabitant to co-sign for real estate, although they would be required to qualify and be liable for 100% of the mortgage payments.

You might reassure your bank you can generate additional income by renting part of your real estate holdings, like a legal suite or spare room. Anywhere from 50% to 100% of gross rents minus operating expenses (such as whether tenants pay for heat) can be used to calculate your income to debt ratio.

Having disability insurance of any kind is useful in renewing real estate mortgages, but only if you signed up before you suffered a disability. Short term or disability mortgage insurance from your employer could cover temporary income blips, and long term is helpful if you are unlikely to return to work. Check with your employer and extended life insurer to see if you are covered.