Quebec homeowners looking to renew mortgages could soon pay more in notary fees: MEI
Homeowners in Quebec may soon have to pay more in notary fees due to a reform to the province's Notarial Act.
According to a new study published Thursday by the Montreal Economic Institute (MEI), this change could almost double the cost of mortgage transfers in the province.
"There's this new interpretation of the Notarial Act that is currently being pushed by the notaries, which would give a monopoly to notaries on filling forms for mortgage transfers," explains Renaud Brossard, vice president of communications at MEI.
He explains that for people shopping around for the best rate when it's time to renew their mortgage, there are "some forms to fill out."
Until recently, these legal documents were first completed by a specialized processing centre before being checked by a notary at a cost of $850.
"Usually, these would have been filled out by legal assistants and then reviewed by a notary," Brossard said. "Now, notaries are trying to make this into their own monopoly, which significantly increases the cost."
That means homeowners looking to transfer their mortgages may soon have to fork out closer to $1,500 -- a 75 per cent increase in cost, according to the MEI.
This, Brossard notes, is called "rent-seeking."
"What notaries are doing is they're sort of exploiting the legal framework to get additional revenue at the expense of the consumer," he tells CTV News. "When you're renewing your mortgage, we're talking about such massive amounts of money, but notaries are trying to extract a couple of hundred dollars extra from Quebecers' pockets."
With interest rates still much higher than they were a few years ago, Brossard argues not all Quebecers want to pay extra for paperwork.
"When it comes to time to renew, it doesn't mean the same financial institution has the best rates, and that sort of competition between financial institutions has helped keep mortgage rates a little bit lower," he said. "By increasing the fee...it is certainly something bad for a consumer, but it's also bad in another way, where it lessens competition."
In addition, Brossard says diverse organizations are interpreting the reform differently -- and no one knows who's right.
"The notaries are interpreting those changes to the law as saying that they now have a monopoly on filling out these forms," he said. "The treatment centres are interpreting it differently. They're saying that they can still fill out the forms as long as it's still reviewed."
He notes the issue is currently before the courts.
CTV News reached out to the Chambre des notaires du Québec (CNQ), but has yet to hear back.
CTVNews.ca Top Stories
Son charged with 1st-degree murder after father's death on B.C.'s Sunshine Coast
A 26-year-old man has been charged with first-degree murder in connection to the death of his father on the Sunshine Coast last year.
Loblaw using body-worn cameras at 2 Calgary stores as part of pilot project
Loblaw is launching a pilot program that will see employees at two Calgary locations don body-worn cameras in an effort to increase safety.
China is raising its retirement age, now among the youngest in the world's major economies
Starting next year, China will raise its retirement age for workers, which is now among the youngest in the world's major economies, in an effort to address its shrinking population and aging work force.
Trudeau says Ukraine can strike deep into Russia with NATO arms, Putin hints at war
Prime Minister Justin Trudeau says Ukraine should be allowed to strike deep inside Russia, despite Moscow threatening that this would draw Canada and its allies into direct war.
Driver charged with killing NHL's Johnny Gaudreau and his brother had .087 blood-alcohol level
The driver charged with killing NHL hockey player Johnny Gaudreau and his brother Matthew as they bicycled on a rural road had a blood-alcohol level of .087, above the .08 legal limit in New Jersey, a prosecutor said Friday.
Sisters finally see the Canadian 'aviation artifact' built by their father nearly 90 years ago
Two sisters have finally been reunited with a plane their father built 90 years ago, that is also considered an important part of Canadian aviation history.
What's behind the boom? The Manitoba community that nearly doubled in a decade
For decades, the Town of Ste. Anne was stagnant, but that all changed about 10 years ago. Now it is seeing one of the highest spikes of growth in the province.
Canadian warship seizes 1,400 kilos of cocaine off Central America
A Canadian warship has seized more than 1,400 kilograms of cocaine during an anti-drug-trafficking operation in Central America.
'I couldn't form the words': 23-year-old Ont. woman highlights need for rural health care after stroke
The experience of 23-year-old Muskoka, Ont., resident Robyn Penniall, who recently had a stroke, comes as concerns are being raised about the future of health care in her community.