Overview

When renewing your mortgage, you’ll need to meet with your lawyer to finalize the transaction. This typically happens about two weeks before your scheduled closing date. Here’s what to expect and prepare for:

1. Interest Adjustment Date (IAD)

• This is the date from which interest on your renewed mortgage is calculated.
• If your closing date and IAD are not the same, you must pay interest for the period between them.
  • Example: If your closing date is the 27th but you want payments to start on the 1st of the next month, you’ll owe interest for the days in between.
  • This interest can either be deducted from the mortgage advance or directly from your bank account.

2. Title Insurance

• May be required by your lender or chosen in place of a new Real Property Report.
• Protects against title defects and ensures the property is free from legal claims.
• Your lawyer will advise if it’s necessary.

3. Fire Insurance

• Required to protect the property and the lender's investment.
• If purchasing a condo, confirm if fire insurance is included in 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 renewal process.
• Ask if the quoted price includes disbursements (e.g., registration fees).

5. Appraisal (If Required)

• Rarely required for renewals unless there is a significant change in property value.
• Confirm with your mortgage agent if an appraisal is necessary and the associated cost.

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.