What is a CEMA?

CEMA is short for – Consolidation, Extension and Modification Agreement.

  • Mostly used for refinances, but in some circumstances purchases, it is possible to avoid paying mortgage tax by modifying a mortgage note to become an extension of the original note for which mortgage tax was previously paid.
  • When a CEMA is completed, the customer pays the mortgage tax for difference between the existing mortgage and the new mortgage and not the tax on the entire amount of the new loan.