Mortgage Refinance Lawyer Toronto

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Mortgage Refinance Lawyer in Toronto

We understand that in any economic climate, it can be difficult to make the payments on a home mortgage. Between high-interest rates and an unstable economy, making mortgage payments is becoming tougher with every passing day. If you have found yourself in this situation, it might be a good time to consider refinancing. The danger in refinancing lies in ignorance. Refinancing is a complex process and without the right knowledge, it can actually put you in an unfavorable situation. We at MB Law can make this daunting process a pleasant experience for you. Our goal is to listen to our clients and provide them with the best solution that fits their needs. Here’s what you need to know about mortgage refinancing and how you can get help.

What Is Mortgage Refinancing?

Mortgage refinancing is the process of obtaining a new mortgage in an effort to reduce monthly payments by consolidating debts, lower your interest rates, take cash out of your home for large purchases, or change mortgage companies. Others get a mortgage refinance to pay off the loan faster or switch from an adjustable-rate to a fixed-rate loan when prime rate is going up.  Most people refinance when they have equity on their home, which is the difference between the amount owed to the mortgage company and the appraised value of their home.

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When Should You Refinance A Mortgage?

Refinancing a mortgage can be a big decision in your life. Before you begin, you should consider why you may want to refinance. Your goal will help you decide your mortgage refinance process from the beginning. Here are a few reasons why you would want to refinance a mortgage:

  • Reduce the monthly payment. When your goal is to pay less every month, you can refinance into a loan with a lower interest rate. Another way to reduce the monthly payment is to extend the loan term, for example from 15 year to 30 year amortization period. The result is easier cash flow management and more money available in the budget for other monthly expenses
  • Tap into equity. When you refinance to borrow more than you owe on your current loan, the lender gives you a check for the difference. This is called a cash-out refinance, and here’s how it works. People often get a cash-out refinance and a lower interest rate at the same time. Many will use the equity that they took out to pay out their consumer debt for which the interest rates could be as high as 30% on balances owing. Some families take out equity to pay for school or minor renovations.
  • Pay off the loan faster. Instead of extending repayment, you also can refinance into a shorter-term loan. When you refinance from a 30-year mortgage into a 15-year loan,you pay off the loan in half the time. As a result, you pay less interest over the life of the loan. You can also change your repayment schedule by switching from monthly to bi-weekly or weekly payments. However, a lot of the time , you may not need to do a refinance to change your payment schedule. Just reach out to your mortgage company and enquire if they will be willing to make the switch for you.
  • Avoid Balloon payments: Some loans, particularly balloon loans, have to be repaid on a specific date, but you might not have the funds available for a large lump-sum payment. In those cases, you can refinance the loan using a new loan to fund the balloon payment and take more time to pay off the debt.
  • Switch from an adjustable to a fixed-rate loan. Interest rates on adjustable-rate mortgages can go up over time, however are historically lower because you are taking on a risk that the mortgage payment may increase during the time of your loan. Fixed- rate loans stay the same during the whole term however are a bit higher. Refinancing an adjustable-rate mortgages to a fixed-rate loan provides financial stability when you prefer the same monthly payments for the duration of your loan.

Do I Need A Lawyer To Refinance My Mortgage?

Working with a lawyer on your mortgage refinancing will minimize the risks involved. Sometimes refinancing is not always a wise move. Sometimes the benefits of a current loan outweigh the savings associated with refinancing. Before you decide to refinance, it’s important to understand the possible costs. One of the major risks of refinancing your home comes from possible penalties you may incur as a result of paying down your existing mortgage. Most mortgage agreements there is a provision that allows the mortgage company to charge you a fee for doing this, and these fees can amount to thousands of dollars. Before finalizing the new mortgage loan, you have to inquire with your current mortgage provider what is the penalty amount, if any. Based on that information you can make an informed decision on whether or not refinancing your current mortgage is financially worthwhile.

If you are refinancing with the same financial institution the bank will offer the use of their in-house lawyer. This may seem tempting as a lot of the time the bank may even offer to pay for it. However, your refinance transaction may take months to close due to the volume of transactions at the bank. This can be frustrating especially if you need the funds by a certain date.

With over 9 years of experience we at MB Law can help you understand your mortgage refinance process.

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glen McCarthy

extra care and attention beyond the call of duty and very happy with their professional attitude. No problems,Only Solutions. Finally met someone who cares and is honestly genuine to the core

Lilly Nikitina

Maria and her knowledgeable and hardworking staff provided us with excellent service in our property closing. They are easy to reach, answered all questions we had timely and professionally. I would certainly recommend MBLAW to my friends and family. And I will work with them again if I need Real Estate lawyer's help.

Grigore Toma

It was such a great pleasure to work with MBLAW and Mariya in particular. I am a non-resident of Canada and Mariya took her time to explain the process of selling the property and tax implications after closing. She referred me to a great accountant who was able to get the certificate in record time. Mariya went above and beyond her call as my lawyer to help me. The buyer has some post-closing issues but Mariya was able to handle the situation with minimal cost to me. Very dedicated and professional. Would recommend 100%! Thank you, Mariya! You and your company are the best!

Malvina MR

We have closed our real estate transaction with Mariya. Mariya is very professional and competent legal practitioner who is always ready to answer questions and help. Her final report was impeccable! I highly recommend her firm and real estate services to anyone!

Yulia Pesin

I would highly recommend this firm to anyone seeking a real estate lawyer. Mariya is very knowledgeable, personable and is easy to reach. She goes above and beyond to answer all client questions and inquiries and ensures that clients' transactions go through smoothly and without a hitch. Her staff is also helpful, friendly and very responsive. Overall a great firm!

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