Scotia Tightening on Condos
If you are selling your condo and Scotia Bank is funding the Buyer's mortgage, you may want to pay attention. Some changes on the way these mortgages are handed out may affect you.
Scotia Tightening on Condos Blog Transcription
Hey There! Rob Reynar here, checking in. Very interesting discussion today surrounding mortgage instructions and what the lawyer actually does for you on your deal when you're buying a house and you're the buyer. It's a crucial role and it has become more crucial with one of the banks. Scotia Bank is now apparently sending out mortgage instructions on condominium purchases that ask the lawyer's opinion of the strength of the condo based on the documents. That's very interesting because generally speaking it's not your lawyer that is doing the document review. You might look at them yourself or you may get a document check company like a condo check here in Calgary to do your document review. It's very interesting because the bank is basically saying to the lawyer, "you tell us if this condo is worth us putting our money behind". Now, can lawyers get into judgment calls on this and quash some deals? You might see that happen out there. I think it's very interesting from a seller perspective as well, it says to me as a seller of a condo, "you better get a real big deposit because that buyer's money may not be there if it's a Scotia Bank funded mortgage", and the lawyer tells Scotia Bank that they're not confident the condo is a worthy investment. Really tricky mortgage instruction if you ask me. Should be very interesting debate over this. So my question for you, What do you think of that issue? Should the Scotia Bank be able to ask your lawyer if you're making a good real estate purchase. firstname.lastname@example.org, R-E-Y-N-A-R, email@example.com. Talk to you soon, buh bye!
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