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Summary: In a refinance, your real estate lawyer reviews the new lender's mortgage instructions, gets a payout statement and discharges your old mortgage, registers the new mortgage on title, receives the funds from the new lender, pays off the old loan, and releases any remaining equity to you.
Refinancing can lower your interest rate, free up equity, or consolidate debt, but it still involves discharging one mortgage and registering another, which is legal work a lawyer handles. Here is what your real estate lawyer actually does at each stage of a refinance in Ontario.
What does your lawyer review when you refinance?
Once your refinance is approved, your lawyer receives detailed instructions from your new lender and reviews them closely. They confirm the requirements are clear and that the mortgage terms, rate, amount, and conditions are reflected correctly in the legal documents before anything is registered.
How does your lawyer pay out your old mortgage?
A refinance almost always means paying off your existing mortgage first. Your lawyer requests a payout statement from your current lender showing the exact balance owing, uses the new funds to pay it in full, and arranges to discharge the old mortgage from title so no lingering debt stays tied to your property.
How does your lawyer register the new mortgage?
Your lawyer prepares and registers the new mortgage as a charge on your property's title, which makes your new lender's interest official and legally enforceable. At the same time, they confirm the title is still in your name and clear of unexpected claims. In practice this means checking that:
Title is in your name. Ownership is confirmed before the new charge is registered.
The old charge is discharged. Your previous lender's mortgage is removed from title.
The new charge is registered. Your new lender's mortgage is recorded in its place.
How does the money flow in a refinance?
The funds move through your lawyer's trust account in order. Your lawyer:
Receives the new funds. The new lender advances the mortgage money into the lawyer's trust account.
Pays out the old mortgage. Your lawyer clears the previous mortgage and any other debts that have to be paid out.
Releases the balance. Any remaining equity is sent to you, or distributed as directed, with every dollar accounted for.
How does your lawyer protect you through a refinance?
Beyond the mechanics, your lawyer explains each step, answers your questions in plain language, and makes sure everything is completed correctly and on time. For how this compares to the other transaction types, see our guides on what a real estate lawyer does in a purchase closing and in a sale closing, or our 7 reasons why you need a real estate lawyer.
Frequently asked questions
Do you need a lawyer to refinance in Ontario?
In practice, yes. Discharging your old mortgage and registering the new one on title are steps that have to be done by a lawyer, so a refinance closing involves legal work even though you are not buying or selling.
Why does the old mortgage have to be paid off?
A refinance replaces your existing mortgage with a new one. Your lawyer pays out the old loan in full and discharges it from title so the new lender's mortgage can take its place without competing claims.
Can I access my home equity through a refinance?
Often, yes. If your new mortgage is larger than the balance paid out on the old one, your lawyer releases the difference to you as equity once the payouts are complete.
How long does a refinance closing take?
The legal work usually runs over the days to weeks between approval and the closing date, with the payout, registration, and fund transfer completed on closing day. Timelines vary by lender.
What does the legal side of a refinance cost?
You pay legal fees plus disbursements such as the title search, discharge, and registration costs. The exact amount depends on the lender and the property; ask your lawyer for a quote up front.
About the author
Benjamin Berry is a co-founder and principal lawyer at Ownright. He works on Ontario residential purchases, sales, and refinances, and writes to make the legal side of a real estate transaction clearer for the people going through it.
At Ownright, we focus entirely on Ontario residential real estate law. We pair a simple online platform with licensed Ontario lawyers who handle your refinance from reviewing the lender's instructions through discharging your old mortgage and registering the new one. You can start your closing online or get in touch with any questions.
Legal references: Land Titles Act (Ontario) (registration and discharge of charges).
Important note: This article is not legal advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.
