What is a Mortgage Switch or Mortgage Transfer?
A mortgage switch or transfer program allows you, the borrower to move your current mortgage “as is” ( same amount and amortization) to a new lender. Since mortgage switches and transfers are becoming one of the more popular sources of revenue for some lenders, there are great incentives for you, the borrower, to switch lenders. In addition to a lower rate, the new lender will usually cover legal and discharge fees as an extra incentive to move.
Why would you want to switch your mortgage to a new lender?
Because of two Reasons: either for a better rate or better product.
At renewal time, your lender will typically send you a letter either 6-months or 120 days before your mortgage matures. At that time, you will need to commit to a new term and commit to a new interest rate. Most of the time, the bank’s offer is in the letter they send, and they will ask you to circle your choice and mail it back to them.
But how do you know if your lender is offering you their lowest rate?
Well, this is our job, as Mortgage Brokers, to advise you free of charge, of the other options that are out there currently available to you. We can easily assess your situation, and based on your needs we can offer several solutions that will best work for your situation. And if staying with your current lender is one of them, we’ll tell you that too!
For more information on mortgage switches and transfers, reach out to me! You can email me at email@example.com or call me at 647-893-2535.
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