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Real Estate > Property Refinancing

Property Refinancing

Refinancing your property can be a smart move – whether you’re lowering interest rates, consolidating debt, or accessing equity for new projects. At GBC Law, we help clients across BC understand their refinancing options and ensure the legal side is handled correctly.

Why Refinance?

  • Lower interest rates – Reduce long-term costs.
  • Debt consolidation – Combine multiple debts into one manageable payment.
  • Access equity – Use property value to fund renovations, investments, or other goals.

Legal Role in Refinancing

  • Satisfy lender’s requirements – Confirm that the lender’s conditions of advance are met.
  • Review of loan security – Ensure you understand your obligations under the loan terms and security granted.
  • Discharges – Handle payout and discharge of existing mortgages and PPSA charges.
  • Risk management – Identify hidden costs, prepayment penalties, or risks of default.

Common Concerns

  • Prepayment penalties and refinancing restrictions
  • Personal and corporate guarantees
  • Priority of PPSA charges
  • Insurance requirements and endorsements

Frequently Asked Questions

What is a General Security Agreement?
A General Security Agreement (GSA) is a contract that gives a lender security over a borrower’s personal property (i.e. equipment, inventory, or accounts receivable). If you fail to make payments, the lender has legal right to seize or sell those assets to recover the debt.
If I have an existing mortgage, when can I refinance?
You can usually refinance once your current mortgage term is up, but it’s also possible to refinance mid-term. The catch is that most lenders charge penalties for breaking a mortgage early, often called prepayment penalties. Whether refinancing now makes sense depends on how much you’ll save versus the cost of breaking your current deal.
What is a prepayment penalty?
A prepayment penalty is a fee your lender charges if you pay off your mortgage early – either by selling, refinancing, or making extra payments beyond your allowance. The penalty amount depends on your mortgage terms and can be significant, especially with fixed-rate mortgages. It’s always worth reviewing the numbers before making a move.
What is the difference between refinancing and a second mortgage?
Refinancing replaces your existing mortgage with a new one, often at a better rate or with new terms. A second mortgage, on the other hand, adds a new loan on top of your existing mortgage. That means you’ll have two separate debts secured against your property, which can increase flexibility but also adds risk and costs.