Important CEMA Mortgage Refinance option to reduce mortgage tax

[Matthew Banks]

Can't believe I've never heard this discussed on BP, podcasts or anywhere else. If you have an existing mortgage on a property and want to refinance, you will typically pay a second mortgage tax on the full amount of the refinance. But you shouldn't have to. You already financed part of the house with the existing mortgage, so a new refi mortgage should only incur a mortgage tax on any additional amount financed.

This is known as a CEMA mortgage. (Consolidation, Extension, and Modification Agreement). it combines the existing mortgage with a new mortgage. This reduces taxes and closing costs. Not all lenders will do this, but you should ask and at least try to find some that will.

https://www.realpha.com/blog/cema-loan#:~:text=What%20Is%20a%20CEMA%20Loan,Mortgage%20Recording%20Tax%20(MRT).