Understanding the Role of Computershare in a Mortgage Transaction
Introduction
For prospective homeowners and those refinancing their mortgages in Canada, navigating the complexities of mortgage transactions can be challenging. One key player that often emerges in these transactions is Computershare. Understanding their role is crucial for a smooth mortgage experience.
What is Computershare?
Computershare is a global company known for its expertise in financial administration, including mortgage servicing. In the context of Canadian mortgages, Computershare primarily acts as a mortgage servicer.
Role of Computershare in Mortgage Transactions
Mortgage Servicing: Computershare manages the day-to-day operations of a mortgage on behalf of the lender. This includes crucial tasks like collecting mortgage payments, managing escrow accounts for property taxes and insurance, and customer service operations.
Communication Bridge: They serve as the primary point of contact for borrowers. If you have questions about your mortgage payments or need assistance with payment difficulties, Computershare is the go-to.
Payment Processing: All regular mortgage payments are processed by Computershare. They ensure that payments are accurately recorded and timely credited.
Handling Mortgage Changes: If there are any modifications to the mortgage terms, such as refinancing or restructuring, Computershare administers these changes.
Default Management: In cases of payment difficulties or defaults, Computershare works with borrowers to find feasible solutions, potentially including loan modifications or other loss mitigation strategies.
How Does This Affect Borrowers?
As a borrower, your direct interaction with Computershare is typically limited to payment-related matters and customer service inquiries. However, it's crucial to understand their role as it affects the management of your mortgage.
Why is Computershare's Role Important?
For lenders, outsourcing mortgage servicing to Computershare allows them to focus on their core business activities. For borrowers, it ensures professional and specialized handling of the administrative aspects of their mortgage, which can be complex.
Conclusion
Computershare plays a vital role in the Canadian mortgage landscape, acting as a bridge between lenders and borrowers. As a mortgage broker or borrower, understanding their role can lead to more informed decisions and a smoother mortgage management experience.
For specific questions about your mortgage, especially if it's serviced by Computershare, don't hesitate to contact us for the most accurate and personalized information.