Most people thinking about transferring or switching their mortgage want to take advantage of a lower interest rate or to get a new mortgage with terms that better suit their needs.

Up for Renewal?

If your mortgage is approaching renewal and you are considering a transfer or switch – great news! You won’t be charged a penalty, and shopping around may more than make up the cost to transfer in interest savings. You will need to qualify at the current qualifying rate and potential costs may include legal, appraisal, and discharge fees.  In some cases, the lender will offer an option to include these fees in your mortgage or even cover some of the costs for you.

Still locked into your Mortgage?

If you’re considering a transfer or switch in the middle of your mortgage term, you will likely incur a penalty for breaking that mortgage. Often, transfers and switches are done to take advantage of a lower interest rate (and lower monthly payments) if the interest savings more than make up the costs.  Others refinance with a new lender to take advantage of the lowest rate possible while paying off debt or accessing equity to make an investment or other purposes.  Requalifying is a requirement in either case.  

If you’re considering a refinance, transfer or switch now or in the future, give me a call to look at your options.  Planning ahead will save you time and interest costs if switching lenders is the right move for you.  

Adapted from DLC Marketing