                                                                                                    ­  ­        ­ ­          ­  ­           ­                                                             ­           Comparison between payment arrangements for refinancing transactionsSituation 1: different mortgage banksBlue arrows: Existing arrangementRed arrows: Additional payment arrangementA Electronic inter-bank paymentsRefinancingMortgage BankOriginal Mortgage BankBank’s Law Firm1Hold custody ofmortgage loanproceedsProvide mortgage
loanRepayment of originalborrower’s* mortgage loan2 Solicitor’s cheque*can be the same borrower3 Solicitor’s chequeExcess over outstandingmortgage loan at OriginalMortgage Bank #Borrower# i.e. refinancing with “cash-out”BCredited directly to Borrower’s account maintainedwith the Refinancing Mortgage BankComparison between payment arrangements for refinancing transactionsSituation 2: different borrowersBlue arrows: Existing arrangementRed arrows: Additional payment arrangementBorrower AA Credited directly to Borrower A’s mortgage loan accountRefinancingMortgage BankOriginal MortMortgage Bank(Same Bank)Bank’s Law Firm1Hold custody ofmortgage loanproceedsProvide mortgageloan to Borrower B2 Solicitor’s chequeRepayment of Borrower A’smortgage loan3 SolicitorSolicitor’sSli it ’s chequehExcess over outstandingmortgage loanloa (if any #)Borrower B# i.e. refinancing witwith “cash-out”B Credited directly to Borrower B’s accountBorrower BComparison between payment arrangements for refinancing transactionsSituation 3: cash-out from mortgage-free propertyBlue arrows: Existing arrangementRed arrows: Additional payment arrangementAMortgage BankProvide mortgage loan1Credited directly to Borrower’s account maintainedwith the Mortgage BankBank’s Law FirmHold custody of mortgageloan proceedsBorrowerBo2 Solicitor’s chequeObtain mortgage loanproceeds        ­                        ­  ­ ­       ­            ­    ­                              