According to a new study published Thursday by the Economic Institute of Montreal (IEDM), this change could almost double the cost of mortgage transfers in the province.
This text is a translation of an article from CTV News.
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“This new interpretation of the Notaries Act would give notaries a monopoly to complete mortgage transfer forms,” explained Renaud Brossard, vice president of communications at the MEI.
He tells people who are shopping around to get the best rate when renewing their mortgage, that there are “forms to fill out.”
Until recently, these legal documents were first completed by a special processing center before being notarized, at a cost of $850.
“Usually, these documents were completed by legal assistants, then certified by a notary,” explained Mr. Brossard. “Today, notaries are trying to make their own monopoly, which greatly increasing costs”.
This means that homeowners who want to transfer their mortgage could soon have to pay nearly $1,500, a 75% increase in cost, according to the MEI.
This is what we call “rent seeking,” said Mr. Brossard.
“What notaries do is they take advantage of the legal framework to get additional income at the expense of the consumer,” he told CTV News. you mortgage, it involves large sums, but notaries try to extract a few hundred dollars from Quebecers.”
With interest rates still much higher than a few years ago, Mr. Brossard says not all Quebecers want to pay extra for paperwork.
“When it comes time to renew, it’s not necessarily the same financial institution that offers the best rates, and this kind of competition between financial institutions has helped keep mortgage rates a little lower ,” he said. “Raising taxes… it’s certainly bad for the consumer, but it’s also bad in another way, by reducing competition.”
In addition, Brossard says that different groups interpret the reform differently – and no one knows who is right.
“Notaries interpret the changes to the law as meaning that they now have a monopoly on filling out these forms. “Treatment centers interpret it differently. They say they can still fill out the forms while they are being checked.”
He is aware that the matter is before the courts at the moment.
CTV News contacted the Chambre des notaires du Québec (CNQ), but has not yet received a response.
2024-08-29 23:22:46
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