Our aim is to provide you with clarity regarding you legal expenses at the beginning so you can properly budget for your refinance.
There is a small variance in legal costs from law firm to law firm and our legal costs are competitive with other law firms. Give us a call at 613 746-8115 and we will be pleased to provide you with both the total legal costs (fees, all expenses and HST) as well as a breakdown so you can properly budget for your refinancing.
From your gross loan, lenders may deduct any applicable CMHC premiums, retail sales tax on those premiums, a holdback for municipal property taxes if they are to be paid through your mortgage, loan commitment fees in some cases, mortgage broker fees in some cases, etc. The amount you are borrowing and the amount the lender advances are not always the same. We recommend you have your lender advise you what the net advance to the lawyer will be so you can budget accordingly.
On closing, we will pay out the balance owing on your existing (old) mortgage or secured line of credit. On top of the balance owing, the lender will be charging an administration fee to discharge the debt (usually around $300 to $400).
If you are paying out your mortgage prior to maturity, you will likely be subject to an early payout penalty which is often the greater of: