I recently switched my mortgage from TD to Scotia bank through a Scotia bank broker. Lawyer was involved as I had HELOC as well with TD and I wanted to keep that with new mortgage.
During my initial meeting I was told that Lawyer fee will be reimbursed to me (lump sum payment of $ 650) if I choose my own lawyer. However, If I choose BNC (Bank of Nova scotia), this will be taken care off by bank automatically.
Since I had only three days before my term with TD comes to an end, broker recommended me to choose my own lawyer as this will be a faster process. As per him, BNC will take about 15 days and I may end up paying interest.
It has now been over a month (new term started with BNC 1st Aug 08), I have still not reimbursed money.
The only written confirmation I have is a response to my e-mail saying it will be done.
Any CD working with BNC as broker , please confirm if actually Lawyers fee is reinbursed to clients?
If the fee is not reimbursed, what can be done?

Talk to the bank.. they should be taking care of it... $650 is nothing compared to the profit they will make on ur mortgage...

At the day of closing, I was at the branch. I talked to the banking officer in regards to this? As per her, there is nothing like that when you deal with branch directly. However, since I got this through broker, different rules may apply, again as per Banking officer.

Do you see any point of going through FSCO?

May be talk to the broker? At my closing, there were some difference in $ amts... similar to you case I guess, what the FI was to waive, they charged me etc. I had a written document from them earlier on what is included, what is waived etc... I talked to the broker and within an hour, the FI faxed a new set of doc to my lawyer with corrected numbers. Few hundreds only, but it was prompt action. (these were courier charges, appraisal fees etc. Not lawyer fees)

I also have mortgage with Scotia thru bank's mortgage specialist and added LOC but they always taken care of lawyer's fee as well as home inspection fee. I think it always depends upon the person you are dealing with. They have a lot of room to take care of such expenses. One should also confirm this type of terms beforehand.

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A Delhite in Toronto