At Mortgage Sisters West, we’re here to provide clear and practical information so you can make informed, educated choices with your mortgage. Whether you’re switching to a new lender for a more competitive interest rate or refinancing your mortgage, it’s important to understand your options for handling the legal aspects of closing out the old mortgage with the new one.
Switch/Transfer to a New Lender
When switching your mortgage to a new lender (also known as a “switch transfer”), legal services are required to complete several key steps:
- Transferring funds
- Registering the new mortgage on title
- Ordering a payout statement from your existing lender
- Signing your new legal mortgage documents
Your Options
Title Company (FCT or FNF):
(in most cases, your mortgage lender will choose which title company they prefer to use)
- Cost: Typically covered by the new lender
- Process: The title company will contact you to arrange signing and manage all required documentation
- Timeline: May take a bit longer than using a lawyer
- Cost: You are responsible for the legal fees
- Process: The lawyer completes all legal requirements of the switch
- Timeline: Often quicker than a title company, but at a higher cost—please confirm fees directly with your lawyer
If you prefer to use your own real estate lawyer, first check with your lawyer they will offer this service. Then just let us know. Otherwise, we’ll proceed with the title company assigned by your lender.
Refinancing Your Mortgage
Refinancing allows you to change the terms of your current mortgage. This may include:
- Accessing equity in your home (cash-out refinance)
- Consolidating debt
- Changing your amortization
- Adding a home equity line of credit
- Making other modifications to your mortgage structure
Just like with a switch, legal services are required for:
- Disbursing funds
- Registering the new mortgage
- Ordering payout statements (from mortgage and potentially other debt holders)
- Signing your legal documents
Your Options
- Cost: More affordable than a lawyer, typically around $750 in Alberta (costs vary by province and are set by the title company).
- Process: The title company will manage the transaction, from document signing to registration
- Timeline: May take slightly longer than using a lawyer
Real Estate Lawyer:
- Cost: You will be responsible for the full cost of legal services
- Process: Lawyers can often close transactions faster
- Recommendation: Confirm fees with your chosen lawyer to compare costs and timelines