Should I Hire a Real Estate Lawyer to Refinance My Mortgage?

Many Canadian homeowners eventually refinance their mortgage, either to access equity they have in their home, to lower their current interest rate, or to increase the payment period. This allows them to access about 80% of their property’s total value while reducing the balance of the mortgage.

However, it can be a complex path to navigate alone, especially for first-time homeowners. Apart from the paperwork, you also have to understand the different terms to which you agree.

That’s why it’s best to hire a real estate lawyer when going through a mortgage refinance.

Here, we highlight some of the advantages of doing just that.

Mortgage Refinancing: Benefits of Hiring a Lawyer 

Below are some reasons to help you understand why it’s a good idea to hire a real estate lawyer when refinancing your mortgage.

1. They Help Avoid Scams 

Unfortunately, there are many individuals who prey upon homeowners facing difficult financial situations, including foreclosure. These people may use dishonest tactics, provide misleading information, and make promises to reduce your interest rates. While their schemes appear affordable and favourable, they can lead you into a vicious cycle of debt.

By hiring a real estate lawyer, you have an experienced professional who will inspect all documents to determine their legitimacy. This ensures you don’t get trapped in agreements from people who charge a huge sum but never provide refinancing or any type of relief.

2. They Represent Your Legal Interests

Your real estate lawyer has your best interests at heart. In their absence, you may face unforeseen difficulties. While other businesses or individuals involved in the process may be genuine, nothing compares to having an experienced real estate lawyer by your side to guide you through the process.

3. Review the Contract

When signing any real estate contracts, you should have a lawyer present to review the minute details. They will carefully examine all the elements and ensure you aren’t being tricked in any way or signing up for something that wasn’t agreed upon. For instance, the revised contract may include specific details, contingencies, or clauses you might not understand, which your lawyer can explain.

6 Benefits of a Real Estate Lawyer for Mortgage Refinancing

4. They Inform You of Hidden Fees 

The paperwork involved with refinancing a mortgage can be scary, and the last thing you want is to discover hidden costs once the procedure is underway.

Some additional costs to keep an eye out for include inspection and appraisal fees, origination fees, title fees, mortgage fees, and whether the mortgage rates are fixed or adjustable.

By hiring a real estate lawyer, you can relax knowing your agreements are being examined closely. They will also help you make sense of any closing costs associated with your refinanced mortgage.

5. They Fill Out Paperwork

When refinancing your mortgage, a lawyer can help you understand the application process, especially if it’s complicated. For instance, say you’ve already discussed the refinancing with your loan server but are having trouble understanding:

  • How to properly fill out the paperwork.
  • The best way to explain your financial situation or hardship.
  • The documentation that needs to be submitted with the application.

By hiring an attorney, you will have someone to fill out the paperwork for you and ensure the hardships are highlighted in the best possible manner.

6. Avoid Different Legal Issues

By hiring a lawyer to help you with your mortgage refinancing, you avoid legal issues that may arise, such as:

  • Debt Issues

By refinancing your mortgage, you may end up incurring more debt. This includes failing to keep up with the new payment plan which may result in higher financial debt, along with more legal issues.

  • Foreclosure

Foreclosure proceedings make the overall process a lot more difficult to overcome.

  • Availability

Depending on the terms of your original contract, refinancing may not be available for you.

  • Negotiation Challenges

Not everyone can negotiate the refinancing of a mortgage. A real estate lawyer can get the best deal on any new contract so you never overpay.

Refinancing your mortgage is a complicated legal process involving multiple steps. But having a property lawyer to help makes navigating the process easier and ensures that it is completed smoothly.