Do I need a lawyer to refinance or switch mortgage lenders in Ontario?
Usually. A refinance or a new second mortgage means registering a new mortgage on title and dealing with the old one, and lenders almost always require a lawyer to handle it. A straight switch at renewal is sometimes processed by the new lender through a title insurance company's service instead, so ask your lender how they handle it.
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What's the difference between refinancing and switching lenders?
A switch moves your existing balance to a new lender at renewal, usually for a better rate, without changing what you owe. A refinance increases your mortgage, often to pay off debt, fund a renovation, or access equity, and can happen mid-term or at renewal. Both involve registering the new mortgage and discharging the old one. A refinance almost always goes through a lawyer; some lenders handle a straight switch through a title insurer's service instead.
Why does a lawyer need to be involved if I'm not buying or selling?
Your home is the security for the loan. Registering a new or larger mortgage changes the legal claim against your property, and in practice lenders require a lawyer to register it and confirm their instructions are met, while your lawyer protects your side of the transaction. Your lawyer also searches title to confirm nothing else has been registered against the property since you bought it: title status, the old mortgage's payout figure, the new lender's instructions, and your property tax status.
What about a second or private mortgage?
A second mortgage sits behind your first on title, often used for renovation funds, debt consolidation, or as a private loan from an individual lender rather than a bank. Private mortgages usually carry higher rates and shorter terms. Because your interests and the lender's can diverge, Law Society of Ontario conflict rules generally prevent one lawyer from acting for both you and a private lender, so you should have your own lawyer advise you before signing.
Are there costs specific to refinancing?
Breaking your mortgage before the end of its term can trigger a prepayment penalty. How it's calculated depends on your mortgage contract: many fixed-rate mortgages charge the greater of three months' interest or an interest rate differential, many variable-rate mortgages charge three months' interest, and some lenders use other formulas. Ask your lender for the exact figure in writing. You'll also pay legal fees and registration costs, similar to a purchase closing but without land transfer tax.
Where to go from here
- Ask your current lender for the exact discharge figure before committing to a new lender.
- Get your own lawyer for a second or private mortgage, separate from the lender's.
- Ask whether refinancing before your renewal date triggers a prepayment penalty.
People also ask
Do I pay land transfer tax when I refinance?
No. It applies to a change in ownership, not to registering or increasing a mortgage.
Can I switch lenders without a lawyer if the balance doesn't change?
Sometimes. The new mortgage still has to be registered and the old one discharged, but some lenders process a straight switch through a title insurance company's service rather than your own lawyer. Ask your new lender how they handle it.
Is a private mortgage registered the same way as a bank mortgage?
Yes, but terms, rates, and lender obligations can differ a lot, which is why independent legal advice matters.
How long does a refinance take from start to close?
Often 2 to 4 weeks once your lender approves the new terms.
Sources
This page is general information about Ontario law as of September 2026. It isn't legal advice about your situation.