What does the lawyer actually do on a mortgage closing?

They review the mortgage documents and explain what you are signing, search title to confirm ownership and find anything registered against it, register the new charge, and handle the money - receiving the funds, paying out whatever is being cleared such as cards, a credit line or CRA arrears, and sending you the balance.

Answers › Costs & Fees

What legal costs are involved, and do I need my own lawyer?

Q: What legal costs are involved in a private or second mortgage?

A lawyer handles the paperwork and registers the charge on title, and there is a legal cost for that. A broker can give a realistic range up front so it is built into your budget, but the exact figure comes from the lawyer because it depends on the type of transaction - position, how many debts are being paid out, whether an existing mortgage is being discharged, and how complicated title turns out to be.

Q: Do I need my own lawyer for a private mortgage?

On many files one lawyer can act for both borrower and lender. On others, particularly private transactions and anywhere interests could diverge, independent legal advice is required and is for the borrower's benefit. If you are told independent advice is unnecessary on a private deal, ask why.

Answered by Rajiv Verma, Mortgage Broker · Reviewed 18 August 2026 · About a 3 minute read

The direct answer

Yes, a lawyer is involved — and on a private transaction that is a protection, not a formality. The lawyer handles the paperwork and registers the charge on title. There is a legal cost for that, and it is a real line in your budget. I give a realistic range up front so it is built into your numbers from the start, but the exact figure comes from the lawyer, because it depends on the type of transaction.

THE SHORT VERSION

A lawyer is required — they do the paperwork and the registration on title
There is a legal cost, and it belongs in your budget from day one
I give a realistic range. The lawyer quotes the exact figure.
It protects you as well as the lender
Registration is charged on A, B and private files alike — it is not a private-lending extra

What the lawyer actually does

Reviews the mortgage documents and explains what you are signing — the term, the rate, the fees, what happens at maturity, and what the lender can do if payments are missed.

Searches title. Confirms you own what you say you own, and finds anything registered against it that you may not know about. Liens and old charges surface at this stage more often than people expect.

Registers the new charge. That is what makes the mortgage a mortgage rather than a promise.

Handles the money. Receives the funds, pays out whatever is being cleared — cards, a credit line, CRA arrears — and sends you the balance.

That fourth point is worth pausing on. If the purpose of the borrowing is to clear debts, the lawyer usually pays them directly. You do not receive the money and then pay them yourself. That is deliberate, and it is one of the quiet reasons consolidation through a mortgage tends to actually happen rather than drift.

Why I will not quote you an exact number

Because the lawyer sets it, and it varies with the transaction — first or second position, how many debts are being paid out, whether there is an existing mortgage being discharged, and how complicated title turns out to be.

What I will do is give you a realistic range before you commit to anything, so the number in your budget is close to the number you will pay. Then the lawyer confirms exactly what applies to your file.

Ask the lawyer directly for the full figure including disbursements and tax. A quote that covers fees but not disbursements is not the number you will actually pay.

Do you need your own lawyer?

On many files one lawyer can act for both you and the lender. On others — particularly private transactions, and anywhere interests could diverge — independent legal advice is required, and that is genuinely for your benefit.

If you are ever told independent advice is unnecessary on a private deal, ask why. It is a short conversation and it is the cheapest protection in the transaction.

What this means for your budget

Legal is one of five costs, and none of them should be a surprise:

Lender fee
Broker fee
Legal — this page
Appraisal — typically $300–$500
Registration — on A, B and private alike

On a one-year term, these together can matter more than the interest rate. That is why I show the full dollar cost rather than a percentage.

What to check

The full quote — fees, disbursements and tax, not just the base figure
Whether you need independent legal advice
What is being paid out at closing, and to whom
Whether the lawyer regularly handles this type of file — private transactions have their own rhythm
When you will actually receive the balance

What to do next

Ask for the full cost breakdown before you commit to anything — every fee, in dollars.

That is what you will get from me, with a realistic legal range included, so nothing lands late.

Talk it through →

Related questions

Answered by Rajiv Verma, Mortgage Broker · Mortgage Architects — FSRA Brokerage Licence #12728 · Licensed in Ontario · Office 289.505.0631 · Direct 647.291.7116

General information about Ontario mortgages — not financial, legal or mortgage advice. Legal fees are set by your lawyer and vary by transaction. Every file is reviewed individually.