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 has to be witnessed.

This direction 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 – always provided by your Mortgage Suite Agent/ broker.

In some rare occasions this fee can increase/decrease. This would need to be communicated 2 days prior to closing, and have legitimate grounds. You would need to re-sign your cost of borrowing disclosure, and the letter of direction.

Not all mortgages come with fees. Therefore, a letter of direction doesn’t always apply. 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 make sure you’re confidant funding your mortgage.