What does a real estate lawyer do for a mortgage refinance in Ontario?
Your lawyer reviews the lender’s instructions, conducts a title search to confirm clear ownership and check for liens or executions, prepares the mortgage documents, registers the new charge on title via Teraview, arranges discharge of the old mortgage, and reports to the lender. Every Ontario refinance requires a lawyer.
How long does a mortgage refinance take in Ontario?
A standard institutional refinance typically takes two to four weeks from lender commitment to closing. The timing is driven by the lender’s underwriting and the time required to obtain a payout statement from the existing mortgagee. Private mortgages can close in days when the file is urgent.
What is a private mortgage and how is it different from a bank mortgage?
A private mortgage is a loan from a private individual, a mortgage investment corporation (MIC), or a syndicated fund, secured by your real estate. Compared to bank mortgages, private mortgages carry higher interest rates, lender fees, broker fees, and shorter terms (often 6 to 24 months), with approval based on equity rather than income.
Do I need Independent Legal Advice (ILA) for a private mortgage?
Most private lenders require ILA from an independent lawyer — meaning a lawyer who is not acting for the lender and not acting on the closing. ILA confirms you understand the terms, the default consequences, and that you are signing voluntarily. The certificate is delivered to the lender as a closing condition.
What are the risks of borrowing under a private mortgage?
The main risks are higher carrying costs, balloon payments at maturity, and an aggressive default and power of sale process if you fall behind. Private lenders are not required to renew. You must have an exit strategy in place before signing, whether that means refinancing back to a bank, selling, or paying out at maturity.
What is a second mortgage and when does it make sense?
A second mortgage is a new charge registered behind an existing first mortgage. It is commonly used to access equity without disturbing a low-rate first mortgage, which is especially relevant in the current renewal environment. The trade-off is a higher rate and the lender’s subordinate priority on default.
What is a reverse mortgage and how does it work in Ontario?
A reverse mortgage lets homeowners aged 55 and older borrow against home equity without monthly payments. The interest compounds and the loan is repaid in full on sale of the home, the borrower’s death, or default. ILA is mandatory because the long-term cost is significant.
How much does a mortgage refinance lawyer cost in Ontario?
Legal fees for a standard refinance typically range from $900 to $1,500 plus HST and disbursements (title search, registration fees, title insurance if required). Private mortgage refinances carry higher fees because of the additional review, ILA, and reporting work involved.
Can I switch lenders at mortgage renewal without a full refinance?
Yes. A mortgage transfer or switch moves the existing principal balance to a new lender at renewal, often using the new lender’s collateral charge. It is typically faster and less expensive than a refinance because the principal is not increasing. A real estate lawyer is still required.
How do I discharge a paid-off mortgage from title in Ontario?
A discharge of mortgage is registered on title via Teraview after the lender provides a discharge statement confirming the loan is paid in full. We request the statement, pay any remaining balance, and register the discharge, clearing the charge from your title.