Refinancing a home may feel routine, writes Bob Aaron, but it is not trivial. The efficiency of online ‘closing centres’ comes at a cost to the consumer: less scrutiny, less explanation, and less accountability.

Bob Aaron is a Toronto real estate lawyer and a contributing columnist for the Star. He is also a member of the Home Construction Regulatory Authority Consumer Advisory Council. He can be reached at bob@aaron.ca

Sooner or later, anyone who owns a home in Canada may be refinancing it with a new lender at least once.

But in the typical refinance transaction with institutional lenders, consumers are sent to online ‘closing centres’ where they do not receive any independent legal advice and sign dozens of pages of mortgage documents — often without a fulsome explanation.

That’s where a new initiative by Stewart Title Guaranty Company enters the conversation. It has launched a national campaign aimed at shifting refinance transactions away from closing centres and back toward one where lawyers are involved to protect, inform and guide the borrowers.

Stewart Title’s campaign is directed at responding to a question that deserves more attention: who is actually protecting the homeowner in closing centre refinance transactions?

Stewart’s initiative focuses on encouraging lenders and brokers to involve lawyers more directly in refinance transactions, and promoting clearer communication and individualized service for borrowers.

In centralized systems, these steps are often handled in bulk, with limited individualized review. Communication may come through portals or call centres rather than a professional who knows the file and is charged with protecting and advising the borrower.

The efficiency of closing centres can come at a cost to the consumer: less scrutiny, less explanation, and less accountability.

Lawyers serve a fundamentally different role in refinances. They are not there just to process transactions for the lender, but also — and this is important — to protect consumers.

A lawyer involved in a refinance will typically:

• Explain the legal implications of the new mortgage.
• Review financial adjustments and prepayment penalties.
• Verify identity and guard against fraud.
• Ensure the transaction is properly papered and registered on title.
• Identify unusual or problematic terms.
• Verify that the old mortgage is discharged and removed from title.

Lenders want efficiency. Brokers want smoother transactions. Borrowers want protection, explanations, clarity, speed and fewer surprises.

But the “one size fits all” closing centre model is not always delivering those outcomes.

Interestingly, feedback to Stewart from lenders and brokers suggests that borrowers are not simply chasing speed. They want clear explanations, confidence in what they’re signing, timely access to funds, and a point of contact who can answer questions.

In short, they want both efficiency and reassurance.

Stewart Title’s campaign implicitly challenges the assumption that removing lawyers is the most efficient or cost-effective approach. Consumer protection is not about the lowest upfront cost. It’s about avoiding the highest downstream risk.

At its core, the debate comes down to priorities.

Centralized closing systems are built for scale. They serve lenders by standardizing and accelerating transactions.

A legal-led model, by contrast, is built around the individual transaction — and the individual borrower.

Those are not the same objectives.

The question for consumers is simple: do you want your refinance handled as a file, or as a legal matter affecting your home?

There are signs the market may be recalibrating.

Some lenders are recognizing that centralized systems can create friction of their own — delays, communication gaps and inflexibility in non-standard cases.

Stewart Title’s campaign is focused on combining the efficiency of technology with the accountability of legal oversight.

If you’re refinancing, a few questions can make a significant difference:

• Who is acting in my interest in this transaction?
• Will I receive independent legal advice?
• Who is verifying my identity and protecting against fraud?
• Can I speak directly with someone responsible for my file?

If those answers are unclear, it’s worth taking a closer look.

Refinancing your home may feel routine — but it is anything but trivial.

It is a legal transaction that can expose homeowners to risk if not properly handled.

Campaigns like the one launched by Stewart Title suggest that even within the industry, there is recognition that the balance may have shifted too far.

For consumers, that’s an opportunity because when it comes to your home, the goal shouldn’t just be a faster closing.

It should be a safer one.

And that starts with ensuring someone in the process is there to protect you — not just process your paperwork.