A letter of direction is a legal document that a client signs in order to acknowledge and direct the lawyer to take a fee for the Mortgage transaction.
The signature on a letter of direction must be witnessed.
This document only applies if the client must pay a mortgage brokerage fee. This fee is a percentage of the loan and should be explained as such in the disclosure documents and outlined in your mortgage sheets documents – which your Mortgage Suite Agent/broker will always provide.
On some rare occasions, this brokerage fee can increase/decrease. In any case, this change needs to be communicated 2 days prior to closing and have legitimate grounds. You will need to re-sign your cost of borrowing disclosure and the letter of direction at this point.
Not all mortgages come with fees.
Therefore, a letter of direction doesn’t always apply. However, when it does, it should not just “pop” up on the closing date of your transaction.
At Mortgage Suite, we disclose our fees, communicate our process, and ensure you’re confident in funding your mortgage.
