Mortgage (Borrowing)

A Mortgage (Borrowing) service covers acting for the borrowers on a new mortgage of residential land: recording the lender’s commitment and its conditions, the land the mortgage charges, the people on both sides, deciding what happens to every interest registered ahead of the mortgage, the statement of the advance and the net advance arriving in trust, and the registration of the mortgage.

It is for the borrowers’ side. The borrowers give the lender a charge on their land, the lender gives them money, and the borrowers owe the cleanup: whatever must be cleared so the mortgage has the rank the lender was promised. That is the position the vendors are in on a resale, so if you have worked a Residential Sale in Laminar, most of this page will feel familiar.

When the firm acts for the lender instead, the lender’s side is a service of its own.

Adding it to a matter

Open a matter and choose Add service in the sidebar. Mortgage (Borrowing) appears wherever Residential Sale does, on residential real estate matters. Adding one asks for the jurisdiction and an optional name; Alberta is the province available today. A matter can hold more than one, and it can hold one beside any other service. Each keeps its own land, parties, statement of the advance and decisions.

Leave the name blank and the service is named after its lender once you add one: Mortgage (Borrowing) Northfield Capital Corp. Two borrowings from the same lender on one matter are numbered until you name them.

The service’s date is the advance date, the day the lender’s money is advanced. Set it from the date in the service’s header or on the Advance page’s Registration tab. It also appears in the matter’s Events section.

What differs from a resale

What the lender is promised is a rank, not ownership. Registering a mortgage changes no owner and issues no new title. What matters is what sits ahead of it on each title, so the Title tab is about rank.
The lender’s conditions are the centre of the work. Insurance naming the lender, taxes paid, a guarantor’s certificate, a signed disclosure statement: each is recorded as a condition with a status and its evidence.
The lender decides the figures. On a resale, the side that receives the money prepares the statement of adjustments. On a mortgage, the lender decides what comes off the advance, so you type its deductions from its own document.

The borrowers are the clients

Every borrower becomes a client of the matter. A matter you leave without a typed title names itself after them, and says which side the firm acts for: Tremblay/Wright Mortgage (Borrowing).

The Borrowers page has these tabs:

Borrowers, each with the Name Registered on Title, filled in from the contact’s full legal name. Change it on the row without changing the contact.
Guarantors. A guarantor is recorded, and is not a client of the matter. In Alberta an individual’s guarantee has no effect unless that person appears before a lawyer who issues a certificate; record that as one of the commitment’s conditions.
Also on Our Side: a spokesperson, an interpreter, and in Alberta the consenting spouse. The consenting spouse is offered only while the mortgage has exactly one borrower, because a spouse consents only when one person mortgages the home. They are not a client either.
Signing, with the borrowers already chosen as attendees, and Our Team.

The Lender page holds the lender, with the name to appear on the mortgage and its address for service, and the Lender’s Lawyer tab. The lender’s lawyer and the lender’s lawyer’s firm are two separate rows: the firm is usually who the net advance comes from, and its standing payment methods show beneath it.

Everything works when there is no lender’s lawyer. Nothing on the service says one is missing.

The Other Parties page holds the mortgage broker and brokerage, the title insurer and the home insurer, each insurer with a policy number.

The commitment

The Commitment page records what the lender’s commitment says.

Terms: the commitment date, the principal amount, the amount registered, the interest rate in the lender’s own words, the payment and how often it is made, the first payment date, the interest adjustment date, the maturity date, the rank the lender requires and the lender’s reference. In Alberta it also holds the standard form mortgage number and whether the mortgage is a high-ratio insured mortgage. Leave the amount registered blank unless the mortgage is registered for more than the principal; while it is blank, the principal amount is used.
Conditions: add each condition of the commitment one at a time, then mark it satisfied or waived with the document that proves it. Nothing here stops the advance from being received. The trust ledger’s own approval rules decide what can be paid out.
Assets: the commitment itself (upload it as an agreement), any amendment, and the lender’s instructions.

Laminar does not compute interest, a payment schedule or the cost of borrowing. The lender does.

Deciding what ranks ahead

The Obligations page has four tabs: Title, To Clear or Pay, We Give and They Give. On the Title tab, every interest registered on the titles the mortgage charges appears once, and you decide each one from five choices:

May stay ahead of this mortgage, such as a utility right of way. This records the decision and nothing more.
Must be cleared by us. This records the firm’s promise to discharge it: an obligation on the To Clear or Pay tab, covering the titles it is registered on, with the lender’s lawyer as the other party, due sixty days after the advance date. From it you can create the payout and open a Mortgage Discharge to do the work.
Must be cleared by the lender’s lawyer. This records the lender’s lawyer’s undertaking instead, on the They Give tab. It is followed up and closed when the registered discharge arrives. It offers no payment and no Mortgage Discharge, because the work is theirs.
Being cleared under another undertaking on this matter. Use this when someone else has already promised to clear it, such as the vendor’s mortgage when the matter also holds the purchase. This records the decision and nothing more, so the same promise is not tracked twice.
To be postponed to this mortgage. This records the decision. Add the undertaking to deliver the postponement yourself on the We Give or They Give tab, whoever gives it.

Sixty days is only a starting point for following the discharge up. Change the due date on the obligation when the trust letter names another. When there is no advance date or no lender’s lawyer yet, the obligation is created without a due date or without the other party, and you add them on the obligation.

If you change your mind between the two choices that record an undertaking, Laminar removes the first, with any draft payment, and records the second. It will not do this once a payment of the first has been approved or while a Mortgage Discharge is working it; it names what is in the way.

Once the mortgage registers and you record it on the parcel from a new title search, it does not appear on the Title tab: the service recognizes it by the registration number you recorded.

The lender’s lawyer’s trust letter usually imposes trust conditions on the firm, such as using the net advance first to pay out a mortgage. Add each one on the We Give tab: choose Add obligation, then Add trust condition. The undertakings the firm gives are added from the same menu.

The statement of the advance

The Advance page’s Statement of the Advance tab shows what is advanced in one column and what is deducted in the other, arriving at the net advance. Laminar adds one line itself, the principal amount from the Terms tab. Type every deduction from the lender’s lawyer’s statement: the lender’s fee, a broker’s fee, the lender’s lawyer’s fees, interest to the interest adjustment date. Upload their statement of the advance from the same tab.

Until the principal amount is recorded, the statement says it is needed and shows no net advance. The advance date never changes any line: nothing on the statement is worked out by days.

The statement shows nothing else about money: no payouts, no levy, no transfer to the firm’s account, and nothing the borrowers must bring.

The net advance arriving

Beneath the statement, Net advance: how it will arrive lists the receipts in the trust ledger that the net advance arrives as. Create the receipt creates one expected receipt from the lender’s lawyer’s firm, or from the lender’s lawyer when no firm is recorded, or from the lender when the lender has no lawyer, titled for example “Net advance from Brandt & Lowe LLP”. Until the service has a lender, the section says one is needed.

The receipt follows the net advance while it is expected: change a deduction and it moves with it. Record its actual amount when the money arrives and it is frozen. If a deduction changes after that, the footer shows the difference. Split off a stated amount records an advance that arrives in more than one part.

The borrowing never sends the net advance anywhere. Paying out the old mortgage is that obligation’s payment, and the balance to the borrowers and the firm’s account are rows you add in the matter’s Trust Transactions section.

Registration and the levy

The Advance page’s Registration tab shows the advance date, then:

Submitted for Registration By: our firm, or the lender’s lawyer. The lender’s lawyer usually registers the mortgage, so that is what the tab says until someone records otherwise.
Date Submitted for Registration, Registration Number and Registration Date.
In Alberta, Reduced Levy Claimed for a Mortgage to the Same Lender, for a mortgage that replaces or adds to one held by the same lender.

The landing page’s line for the Advance page gives the net advance, then which stage the registration has reached: not yet submitted, submitted on a date, or registered on a date.

When our firm submits the mortgage, Laminar adds the mortgage levy to the matter’s billing as a cost the firm pays and recovers: $50 plus $5 for every $5,000, or part of $5,000, of the amount registered. It follows the amount while it is a draft. When a reduced levy is claimed, no levy is added: enter the reduced charge yourself.

Recording the registration changes nothing on the parcels. When the mortgage registers, pull a new title search and record the mortgage on the parcel from it, as you would after any search.

A refinance

There is no separate refinance service. A refinance is a Mortgage (Borrowing) and a Mortgage Discharge on one matter:

Add the borrowing and record the commitment, the land and the people.
On the Title tab, decide the old mortgage must be cleared by us.
From that obligation, open a Mortgage Discharge. It takes the borrowers as mortgagors, the old lender as mortgagee, and the advance date as its payout date. Record the payout statement on it, and create the payment.
A credit card or other debt the lender wants paid from the advance is a payout obligation on the To Clear or Pay tab, with its own payment.
When the discharge registers, record it on the Mortgage Discharge and the titles are marked discharged. Attach the registered discharge to the obligation and mark it satisfied.

A mortgage beside a purchase

On a financed purchase the matter holds the Residential Purchase and the mortgage service. They do not know about each other. Each decides the interests on title for its own client: on the mortgage, the vendor’s charges that the vendor’s lawyer has already promised to clear are Being cleared under another undertaking on this matter.

The receipt of the net advance and the payment of the balance due on closing are separate rows in the matter’s Trust Transactions section, each naming the service it came from. The trust ledger is where the advance becomes part of what the purchase pays. A purchase agreement you upload still fills the purchase: the mortgage takes nothing from a document.

Removing it

Laminar refuses to remove a borrowing while it owns an open obligation, such as a discharge the firm has promised, or while a receipt of its net advance is frozen. It lists everything in the way at once. A borrowing nothing blocks takes its draft receipt and its draft levy with it, and leaves its parties, its parcels, its decisions and its closed obligations as history. A parcel cannot be unlinked while an open obligation of the borrowing covers it.

What it does not do

It ships no document templates yet, and does not read the commitment or the lender’s instructions for you. Its fields, parties, parcels and statement of the advance are available to templates your firm writes.
It does not record what kind of lender it is, and nothing behaves differently for a bank, a credit union or a private lender.
It does not work out what the borrowers must bring or the balance to them.
It does not compute interest or a payment schedule.
It does not submit anything to the land titles office or order title insurance. You record what happened.