Legal Fees for Refinancing a Mortgage in Canada

Why are there legal fees for refinancing a mortgage?

When you refinance your mortgage, you will typically have to pay legal fees to cover the costs of paying out your existing mortgage, paying out other debts if applicable, and registering your new mortgage on your property. These fees can vary depending on the complexity of your situation and the services provided by the lawyer. In general, legal fees for refinancing a mortgage in Canada can range from $900 to $2000.

Please keep in mind that some lenders offer “free refinance” promotions that cover legal fees and other costs.

What do legal fees for refinancing a mortgage cover?

Legal fees for refinancing a mortgage typically cover the costs of reviewing documents, paying out existing mortgages or other debts being paid out, and registering the new mortgage on your property.

What are the potential additional costs for refinancing a mortgage?

In addition to legal fees, there are several other potential costs that you should be aware of when refinancing a mortgage in Canada. These can include:

• Appraisal fees: Your lender may require an appraisal of your property to determine its value. This fee can range from $100 to $600, depending on the size and location of your property. For more unique properties or executive properties, the appraisal fee can be higher. 
• Title insurance fees: If you are refinancing a property you already own, you may need to purchase title insurance to protect against any potential title defects. This fee can range from $100 to $500 or more.
• Discharge fees: Most lenders charge a discharge fee when you pay out your mortgage. This fee is typically between $350 and $500.
• Penalties: If you're breaking your mortgage before the term is up for renewal there may be an early pre-payment penalty.

How can I save money on legal fees for refinancing a mortgage?

There are several ways you can save money on legal fees for refinancing a mortgage in Canada. Some options to consider include:

• Shopping around: Legal fees can vary depending on the lawyer you use, so it's important to shop around and compare quotes from different professionals. Be sure to ask about their fees, experience, and services before making a decision.
• Negotiating fees: Some lawyers may be willing to negotiate their fees, especially if you have a large or complex transaction. Don't be afraid to ask for a discount or a reduced rate, especially if you are working with a tight budget.
• Using First Canadian Title (FCT): FCT is a closing company that can be used instead of your lawyer and typically has significantly reduced fees compared to what your lawyer would charge.
• Free refinance promotion: You may be able to refinance for free or with most of the fees covered by your lender.