Multi-Province Mortgages

Out of province moves are gaining in popularity with housing costs in some provinces forcing borrowers to look elsewhere.

It is likely that borrowers are already aware of some of the responsibilities that they’ll have when moving to a new province. They’ll need to change their car insurance, update their driver’s license, and apply for a new provincial health card.  What they may not be aware of is what needs to be taken into account when financing a new mortgage in a different province.

That’s where their broker comes in…

If you have a borrower moving out of province, there are some things to consider when it comes to multi-province mortgages. Borrowers moving between provinces often need bridge financing.  Due to the fact they will often purchase in another province before they’ve sold their existing home.  When both properties are in the same province, it’s easy to blanket the mortgage over both properties.  But when the security is in 2 different provinces, each with its own land title system, it’s a little more complex.

You will need to work with a lender who can do business in both provinces.

Another factor of multi-province mortgages is that their legal costs are often higher.  The reason for this is that a mortgage needs to be registered in each of the provinces.  Remember to warn your borrower beforehand so that they’re not surprised by the extra cost.  Other than that, the process for multi-province mortgages is quite similar a regular blanket mortgage.

If you find yourself working with a borrower who is looking to move out of province, Kokanee Mortgage may be able to help.  Kokanee Mortgage does business in Ontario, all 4 Western Provinces, and the Yukon.  So, we have a lot of experience with handling these files.  We have processes in place to help quarterback all this for the borrower.  In turn, this alleviates stress and makes the borrower’s transition easier.