Surrey Home Refinance Lawyer
Refinancing can be an efficient way to extract the value locked in your home. As your loan is secured by a valuable asset, you may be able to obtain a lower interest rate than is available if you had no security to offer to a financial institution. Typically, refinances are used to take out some equity you’re your home for renovations, consolidate high-interest debt or purchase an asset that cannot be financed or financed at a higher interest rate. We can help you with your refinance by offering timely advice at a cost-effective price. Contact our Surrey home refinance lawyer today.
Before you refinance your home:
- Choose a financial institution or mortgage broker.
- If you are planning to payout your existing mortgage on your home, speak with your lender and check if there are any prepayment penalties that are applicable to your mortgage.
- You should also obtain your mortgage reference number and how much you currently owe on your mortgage.
- If you are registering a second or subsequent mortgage, you should check with your existing lender to ensure that you do not breach the terms of your existing mortgage by placing a second or subsequent mortgage against your home.
The Commitment Offer:
- You will sign a document with your lender called a commitment offer or something similar which generally outlines the following:
- The amount borrowed;
- Your interest rate;
- Your payments;
- Your term;
- Your amortization;
- Any fees charged by the lender or mortgage broker; and
- Special conditions including:
- An appraisal of your home;
- Proof of employment income;
- Life insurance;
- Payout out and closing credit cards or other credit facilities; and
- Fire insurance.
The Commitment Offer has been Accepted by You:
- You must arrange to meet any conditions required by the lender.
- You should contact a lawyer or notary to provide services to complete the legal documents required. Most lawyers or notaries require about 2 weeks notice prior to the date scheduled for the refinance.
- You should advise the lender of the name of your lawyer or notary.
- If you are obtaining a reverse mortgage, the legal documents are actually prepared by the lender’s lawyer and you must engage a lawyer to provide you with independent legal advice and witness your signing of the mortgage documents.
Refinance Costs – Refinance costs generally include the following:
- Legal costs – We offer competitive fees. In addition to legal fees (which are subject to GST and PST), there are disbursements for land title registration costs including registration of your new mortgage and discharging your old mortgage, if applicable, title searches, tax searches and strata documents, if applicable.
- Legal costs for the Lender’s Lawyer – you may be required to pay for the cost of the lender’s lawyer if you are obtaining a reverse mortgage.
- Lender or broker fees – these fees will be deducted from your net mortgage proceeds and will have been disclosed to you when you signed your commitment letter.
- Third party costs – you may be required to pay for obtaining information regarding your property taxes, fire insurance, strata payments (if applicable). If these accounts are in arrears, you will be required to bring them back into good standing.
- Paying out financial charges – depending on your type of refinancing product, you may be required to payout your existing mortgage, secondary mortgages, judgements on your title, lines of credit, credit cards balances, car loans and other financial charges.
- Once your lawyer or notary has received your mortgage instructions, you will typically have an appointment to sign documents at least 1 working day prior to your refinance date.
- If your product is a reverse mortgage, your lender will ask for the name of your lawyer and the lender’s lawyer will forward the mortgage documents to your lawyer. Most reverse mortgage lenders require you to use a lawyer instead of a notary as the lender requires you to receive independent legal advice regarding the reverse mortgage.
- You must bring at least 2 pieces of ID for the appointment, one of which must be government issued photo ID.
- In addition to signing your mortgage documents, you may be required to bring documents to assist your lawyer or notary in fulfilling any conditions set out in the commitment letter such as credit card statements, car loan details and strata information.
- On the date set for the refinance, your lawyer or the lender’s lawyer will register the mortgage documents electronically at the Land Title office and upon successful registration, the lender or the lender’s lawyer will forward the net mortgage proceeds to your lawyer or notary. We will then attend to paying out your financial charges and any other charges required by the lender and disperse the net balance to you. Typically, your mortgage funds are available the day after your closing date. If your mortgage is a line of credit, then the facility will be made available to you through your lender.
NTD – more personal by not referring to “lawyer or notary” and just assume they are using our firm???