What Does a Lawyer Do When You Refinance Your Mortgage?
Refinancing your home in Ontario can be a great way to lower your interest rate, consolidate debt, or access your home equity—but did you know that a real estate lawyer is required to complete the process?
Whether you’re switching lenders or borrowing more against your home, a lawyer ensures everything is legally sound and financially secure. Here’s what they do behind the scenes to make your refinancing smooth and stress-free.
- Title Search: Ensuring a Clean Slate
What It Is: Your lawyer conducts a title search to confirm that you are the legal owner of the property and to check for any liens, unpaid taxes, or legal issues.
✅ Why It Matters: This step protects both you and your lender by ensuring there are no unexpected claims on the property that could delay or derail the refinance.
- Discharging Your Existing Mortgage
What They Do: Your lawyer works with your current lender to remove (or “discharge”) your existing mortgage from the property title.
Why It’s Important: Your old mortgage needs to be cleared before your new mortgage can be registered. This step ensures a smooth transition from one lender to another.
- Registering Your New Mortgage
What It Is: Once your old mortgage is discharged, your lawyer registers the new mortgage with the Ontario Land Registry Office.
Why It Matters: This legally records your lender’s claim on the property, securing your refinancing agreement and ensuring everything is compliant with Ontario law.
- Handling the Financial Transactions
Your lawyer acts as the middleman for all the funds involved in your refinancing. Here’s how:
Receiving Funds: Your new lender sends the mortgage funds to your lawyer’s trust account.
Paying Off Your Old Mortgage: The lawyer ensures your previous lender is paid in full.
Clearing Other Debts (If Needed): If you’re consolidating debts, your lawyer distributes the funds accordingly.
Releasing Remaining Equity: If you’re pulling out home equity for renovations, investments, or personal expenses, your lawyer ensures you receive the remaining funds.
- Title Insurance: Extra Protection for You
What They Do: Your lawyer may arrange title insurance, which protects you and your lender from title fraud, survey errors, or undisclosed claims on your property.
Why It’s Important: Many lenders require title insurance before approving your refinance, and it also adds an extra layer of security for you as a homeowner.
- Reviewing & Signing the Legal Documents
Before finalizing your refinance, your lawyer ensures you fully understand the legal aspects of your new mortgage.
Mortgage Agreement: They’ll explain key terms like interest rates, penalties, and payment schedules so you know exactly what you’re signing.
Other Legal Paperwork: Any additional documents (such as tax adjustments) are reviewed and confirmed.
- Providing Legal Advice (If Needed)
When It’s Needed: If title disputes, legal claims, or financial complications arise, your lawyer will provide guidance and solutions to resolve them.
Why It’s Important: Having an expert in your corner ensures your refinancing stays on track without costly surprises.
How Much Does a Lawyer Cost for Refinancing in Ontario?
Refinancing legal fees are typically lower than home purchase fees. In Ontario, expect to pay between $800 to $1,500, depending on the complexity of the transaction.
Why You Need a Lawyer for Refinancing
Ontario law requires a real estate lawyer to complete your refinancing to ensure your mortgage is properly registered and all financial transactions are secure.
A lawyer makes sure:
✅ Your old mortgage is discharged correctly
✅ Your new mortgage is registered without issues
✅ All financial transactions are handled safely
✅ You’re legally protected throughout the process
If you’re thinking about refinancing, I can help you find the best mortgage rates and terms—and connect you with a trusted real estate lawyer to make the process hassle-free.
Have questions about refinancing? Let’s chat!
Email: lamalfi@tmacc.com
Call: 905-929-1199
Serving: Ancaster, Hamilton & All of Ontario
Let’s make refinancing work for you!