1. Interest Adjustment Date (IAD)

• The date from which interest on your refinanced mortgage is calculated.
• If your closing date and IAD are not the same, you will owe interest for the period between them.
  • Example: If your closing date is the 27th but you set your IAD as the 1st of the next month, you must pay interest for the interim days.
  • This interest can either be deducted from the mortgage advance or directly from your bank account.

2. Title Insurance

• May be required by the lender or chosen instead of a new Real Property Report.
• Protects against title defects and legal claims on the property.
• Your lawyer will advise if it’s necessary for your refinance.

3. Fire Insurance

• Required to protect the property and the lender's investment.
• If refinancing a condo, confirm if fire insurance is included in your condo fees.
• Provide your lawyer with proof of fire insurance before closing.

4. Legal Fees

• These are the costs associated with your lawyer’s services for handling the refinance process.
• Confirm if the quoted fee includes disbursements (e.g., registration fees).

5. Appraisal (If Required)

• Typically required if the property’s value needs to be assessed for the new loan amount.
• Confirm with your mortgage agent if an appraisal is necessary and its estimated cost.

6. Bridge Financing (If Required)

• If using funds from the sale of another property to refinance, and the sale closes after the refinance, you may need bridge financing.
• This is a short-term loan to cover the gap, which is paid off once the other property’s sale is completed.
• Not all lenders offer bridge financing—confirm with your mortgage broker in advance.

Final Tips

• Meet your lawyer about two weeks before closing to review and sign all documents.
• Bring all necessary documentation, including fire insurance proof, ID, and payment method for legal fees.
• Clarify all costs with your lawyer to avoid surprises at closing.