Share article
Share article
Summary: A refinance closing in Ontario runs through about six steps once your lender approves the refinance: the lender sends your mortgage instructions, your lawyer runs a title search, you sign your documents a few days before funding, the new funds pay out and discharge your old mortgage, any extra equity is transferred to you, and you receive a final report. Your lawyer handles the coordination between lenders so you do not have to.
Refinancing is an important financial milestone, and while there are a few moving parts, the process is straightforward when it is guided step by step. Here is how a refinance closing works with Ownright by your side, from your lender's instructions to your final report.
What happens during a refinance closing in Ontario?
Once your refinance is approved, the closing runs through six broad steps. You confirm a few details with your lender up front; your lawyer handles the rest:
Share your mortgage instructions. Once approved, your lender sends us your mortgage instructions directly. Make sure you have given your lender everything they need (income verification, property details, or an appraisal) so we can review the instructions and prepare the documents.
Title search and due diligence. We run a title search to confirm ownership and catch any issues, such as liens or an old mortgage, that could delay registration of the new mortgage. If anything unusual comes up, we explain it and resolve it on your behalf.
Sign your documents. A few days before funding, you meet your lawyer over video to review and sign the new mortgage paperwork and the documents authorizing us to pay out any existing mortgage or line of credit, using any device that works with DocuSign.
Pay out your old mortgage. On closing day, we receive the new mortgage funds and use them to pay out and discharge your old mortgage or secured line of credit, so the title reflects only the new mortgage going forward.
Receive additional funds, if applicable. If your refinance takes out extra equity, we transfer the remaining funds to you after the old mortgage is paid out, usually by wire, confirming the amount with you ahead of time.
Final reporting package. After closing, we send a final report with your signed documents, confirmation the old mortgage was discharged, and details of your new mortgage for your records.
What does your real estate lawyer handle in a refinance?
Most of the work happens behind the scenes. Your lawyer reviews the lender's mortgage instructions and prepares the documents, runs the title search, registers the new mortgage, pays out and discharges the old one, and coordinates the timing of funds between lenders so nothing falls through the cracks.
The lender's instructions to your lawyer come from the commitment letter you signed, and for a fuller look at the lawyer's role on a refinance, see what a real estate lawyer actually does in a refinance.
When do you receive funds from a refinance?
If your refinance includes taking out equity, you receive those funds after closing, once the new mortgage funds have arrived and your old mortgage has been paid out and discharged. The remaining amount is then transferred to you, most often by wire, with the amount confirmed in advance.
You will also receive a final reporting package in your Ownright account once it is ready. If you are still comparing options before you refinance, our guide on how to find the best mortgage rate covers what to weigh.
Frequently asked questions
How long does a refinance closing take?
Most of the work happens in the days between your lender sending instructions and the funding date. The signing meeting is usually a few days before funding, the old mortgage is paid out on closing day, and any equity is transferred to you shortly after.
Do you need a lawyer to refinance in Ontario?
Yes. A real estate lawyer is required to close a refinance. They review the lender's instructions, run a title search, register the new mortgage, and pay out and discharge the old one.
How does paying out the old mortgage work?
On closing day, your lawyer receives the new mortgage funds and uses them to pay out and discharge your existing mortgage or secured line of credit, so your title reflects only the new mortgage going forward. You do not coordinate between lenders yourself.
When do you get the equity from a refinance?
After closing. Once the new funds arrive and the old mortgage is paid out, your lawyer transfers any remaining equity to you, usually by wire, with the amount confirmed ahead of time.
What are mortgage instructions?
They are the lender's directions to your lawyer, based on your commitment letter, setting out the new mortgage terms and the conditions to satisfy before funds are advanced. Your lawyer works directly from them to prepare and register your refinance.
About the author
Joel Fox is a co-founder and COO at Ownright. He helps run the firm's day-to-day work on Ontario residential closings, refinances, and sales, and writes regularly to demystify the parts of a transaction that most homeowners only encounter once or twice in their lives.
At Ownright, we make refinancing as clear and supported as a purchase or sale. From reviewing your mortgage instructions to discharging your old loan and transferring new funds, we handle the details and keep you informed. You can start your closing online or get in touch with any questions.
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.
