Real Estate Law
About LD Law
Refinancing Mortgage Lawyer Toronto
Securing a mortgage or refinancing can be a daunting task, especially if you’re not familiar with the process.
You may have heard a number of horror stories about people who were taken advantage of during their mortgage transactions. Or maybe you’re just not sure where to start and what all is involved.
LD Law is here to help. We are experienced real estate lawyers who will guide you through the entire process, from beginning to end. We’ll make sure that you understand everything that’s happening and answer any questions that you have. Plus, we offer competitive rates and individualized attention for each client.
Contact LD Law LLP
Thinking of refinancing your mortgage?
You’re not alone. Millions of Canadians refinance their mortgages every year. There are many reasons to do it, and LD Law can help make the process as smooth as possible for you.
LD Law LLP is a leading real estate law firm in Toronto that provides experienced representation on mortgage refinancing transactions with an emphasis not only on client service but also on detail.
We know that getting a new mortgage or refinancing an old one can be a little daunting. That’s why we’re here to help. Our real estate lawyers personally attend to all matters themselves, paying close attention to every single thing we need for each case at hand- you can be sure it will get done right!
Our real estate lawyer will take care of all the paperwork and make sure the transaction goes through smoothly – so you can relax and enjoy your new mortgage.
Contact us today for a free consultation!
Why Clients Choose Us?
My closing case was a bit special. I was not confident after consulting a couple of law firms before coming to LD Law. Here, I have come across the best real estate lawyer in Toronto who handled my case smoothly and even followed up on some hiccups.
Concise and efficient communication, quick response. Highly recommend this firm.
Costs of Refinancing
People who are looking to get a lower interest rate on their home or access the equity they’ve built in it may want to consider refinancing. This can be an excellent financial solution under certain circumstances, but there’s always going to be some cost associated with it that needs to be considered before deciding whether this is really what you want.
If you are looking to refinance your home, then this is an opportunity that not many people can afford. However, with lower interest rates and funds available for renovations or education of children- it may be just what the doctor ordered!
A refinance allows you to use up to 80% of the value of your property, less any outstanding balance on your mortgage. Let’s assume that the value of your house is $300,000 and you have a remaining loan amount of $200,000.
Determine available equity
$300,000 (home value)
x 80% (max loan-to-value ratio)
– $200,000 (max loan-to-value ratio)
= Available equity: $40,000
There are many reasons to refinance your home loan. However, doing so within the term of the original agreement can be risky. If you have access to rates on future mortgages, and you have time before moving out or refinancing, then it might make sense to refinance now rather than waiting until after all these milestone events happen.
Mortgage pre-payment penalty
Breaking your mortgage early is never fun, but it’s even more unwanted if you have to pay extra fees. If your refinancing requires you to terminate your mortgage early, you’ll have to pay a mortgage prepayment penalty fee in addition to the other expenses listed in the table above. If you have a fixed-rate loan, your pre-payment penalty will be either:
- Three months’ interest or
- The interest rate differential (IRD).
If you have a variable-rate mortgage, your penalty will be three months’ interest. If you refinance after your mortgage term has come to an end, you will not be charged a prepayment penalty.
Mortgage discharge fee
If you are a switching lender, you’ll have to pay a fee to terminate your loan with your previous lender. Each lender has its own discharge fees, but they are typically between $200 and $350 per province. Lenders in various parts of the country charge different discharge fees.
A Quick Tip: If you switch lenders, some may pay your old lender’s discharge fee for you. (However, the providers that do so on occasion don’t have the best rates.) Ask your mortgage professional for more information.
| Lender | Discharge Fee |
|---|---|
| BMO | $200 |
| CIBC | $225 |
| Laurentian Bank | $150 |
| National Bank | $250 |
| RBC | $260 |
| Scotiabank | $270 |
| TD Canada Trust | $200 |
Mortgage registration fee
If you’re thinking of leaving or staying with your current lender, be sure to pay the existing mortgage registration fee. The process for re-registering the title on your property includes removal and replacement by new mortgage paperwork which will require an additional $70 in most cases from both homeowners’ properties across Canada.
Legal fees
It’s important to work with a lawyer when you refinance your mortgage. They will review the terms of both loans and make sure no leans have been made against your property, which can cause problems down the line if not taken care off now! Legal fees range from $700-$1k but don’t worry – they’re usually worth every penny as this saves time in having multiple transactions done at once instead waiting for each one individually.
If you’re switching lenders and your mortgage balance is over $200,000, your new lender may cover your legal costs for you.