You are taking out a new mortgage on your existing home and you need a lawyer to handle the paperwork. How does it all work?
Initial Contact & Communication
You sign a loan commitment with your mortgage broker or bank representative
The lender sends us their mortgage instructions
We make contact with you by phone, email or meeting to confirm our engagement.
We send you a letter detailing the process, costs, information to be exchanged, etc.
Lawyer’s Searches and Title Insurance
We obtain a summary of your title to the property to confirm the ownership and any outstanding charges, liens or claims against the property. This is not a full title search, nor is one required since you already own the property.
We order title insurance for the new lender. If you obtained title insurance at the time of your purchase, your existing owner’s policy is still effective for you; it just doesn’t cover the new lender.
For condos, we also need to obtain a status certificate from the condominium corporation to ensure the condo fees are up to date and the condominium corporation is in good financial shape (for the benefit of the lender). This can take up to 10 days to obtain so the refinancing can not always be completed in just a few days.
Document Preparation and Co-ordination
We prepare the mortgage documents in accordance with the new lender’s instructions
We arrange for the new lender to send us the mortgage funds on the day of closing
We obtain discharge/payout statements from the old lender and other statements from you for any other debts needing to be paid out
We obtain confirmation of house insurance from your insurance agent showing the new lender on the insurance policy
We contact you in advance to schedule a meeting and advise what items you need to bring with you for the meeting
We meet with you on or before closing:
Photocopy your ID (a legal requirement)
Review a detailed breakdown of the money coming in and going out of our trust account and your net proceeds
Review, explanation and signing of mortgage documents
Explanation of the closing process and when you can expect to receive your net proceeds
Closing and Reporting
We receive the new mortgage proceeds from the lender
We register the new mortgage against the title to your property in the Land Registry system
We contact you immediately to advise that your cheque for the net proceeds are available for pick up at our office
We pay out the old mortgage and any other debts to be paid out.
We send our final reports to you, the lender and the title insurance company (a few weeks after closing)
We follow up with the old lender if necessary to confirm that they have removed the old mortgage from the title to your property