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Closing Your Refinance

Closing Your Refinance

Closing a mortgage refinance is the final step in refinancing your mortgage. It’s an exciting milestone that brings you closer to achieving your financial goals, such as reducing monthly mortgage payments, accessing home equity, or securing a better mortgage rate. A Sunlite Mortgage mortgage agent can walk you through the essential steps and critical considerations in closing your mortgage refinance in Canada.

Understanding the Mortgage Refinance Process:

  1. Finalizing Your Application: After completing the refinancing application and providing all necessary documentation, your lender will review your financial information, credit score, and property appraisal to ensure you meet the eligibility criteria.
  2. Locking in the Interest Rate: Once your application is approved, you’ll have the option to lock in the interest rate offered by your lender. Rate lock-in periods typically range from 30 to 120 days, ensuring you secure the agreed-upon rate during the closing process.
  3. Mortgage Term and Terms and Conditions: Review the details of your new mortgage, including the loan term, interest rate, payment schedule, and any specific terms and conditions. Ensure you understand all aspects of the new loan before proceeding.
  4. Pre-Closing Steps: Before closing, your lender will provide a mortgage disclosure statement detailing the final loan terms and estimated closing costs. Please review this document carefully to verify its accuracy.

Key Considerations for Closing:

  1. Closing Costs: Be prepared for closing costs associated with the refinancing process. These costs may include origination fees, appraisal fees, title insurance, legal fees, and other administrative expenses. Ensure you have the funds available to cover these costs.
  2. Loan Payoff and Disbursement: During the closing, your existing mortgage will be paid off using the proceeds from your new loan. Any remaining funds from the refinance, such as cash-out proceeds, will be disbursed according to your instructions.
  3. Mortgage Insurance and Escrow Accounts: If applicable, discuss mortgage insurance requirements and the setup of escrow accounts with your lender. Understand how these factors impact your monthly payments.
  4. Signing the Closing Documents: At the closing, you’ll be required to sign various documents, including the mortgage note, deed of trust, and other legal paperwork. Ensure you review and understand each document before signing.

Closing Day:

  1. Be Prepared: On the closing day, bring all necessary identification and documentation as your lender requires. Double-check the list provided by your loan officer to ensure timely delivery.
  2. Final Payment: Ensure you have sufficient funds for closing costs. Your lender will provide instructions on how to submit the final payment.
  3. Review Closing Documents: Take the time to carefully review each document before signing. Don’t hesitate to ask questions or seek clarification if needed.

After Closing:

  1. Confirmation: After closing, your new mortgage will be recorded with the appropriate government authorities, officially completing the refinance process.
  2. Continue Making Payments: If your new loan does not include a grace period, continue making payments on your existing mortgage until the refinancing takes effect.

Closing a mortgage refinance in Canada marks the end of a significant financial journey and the beginning of a new chapter in your homeownership. Understanding the process and considering key considerations can ensure a smooth and successful closing. Review all documents carefully, work closely with your mortgage broker and lawyer, and provide any requested information proactively. The closing day signifies the realization of your financial goals. With proper preparation, you can confidently move forward with the benefits of your mortgage refinance with your Sunlite Mortgage agent.