Refinancing a mortgage does carry certain costs. These can include appraisal fees for determining your property’s value, legal fees for preparing and registering the mortgage on title, and a discharge fee if you’re refinancing before the end of your existing mortgage term. You might also have to pay a reinvestment fee to the discharging lender if you opt to pay out your mortgage before the maturity date. Finally, there may be a prepayment penalty for a closed mortgage, which can be the greater of three months’ interest or the interest rate differential. However, if your mortgage is open, no penalty will be charged by the lender.

While some banks may offer an internal refinance option using a title company, it can potentially lead to complications. By choosing to work without a personal lawyer, you risk not fully understanding the legal implications of the documents. Additionally, a title company might not provide the same personalized service and could have longer delays due to their transaction volume.

Yes, you can refinance and consolidate your loans if your bank or an alternative lender qualifies you for a mortgage. You could pay off your current second mortgage through refinancing. If you wish to retain all or part of the second mortgage and only refinance the first, you would need your first lender’s consent to have subsequent financing registered on the title.

While there’s no set limit to how often you can refinance, be mindful of the associated costs each time you do so.

Yes, refinancing can affect your credit score. When you apply for refinancing, the lender will perform a hard inquiry on your credit report, which can lower your score slightly. Furthermore, if you’re consolidating debt through refinancing and subsequently increasing your debt load, this could negatively impact your credit score. It’s crucial to manage new credit responsibly and continue making payments on time to maintain a good credit score.