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.
or upside down. Basically, real estate markets ebb and flow and if you refinanced to 95% when we were at the crest of a market wave then as markets rolled back you were underwater…
What is a Mortgage Renewal? A mortgage renewal is when the current terms of your mortgage come to an end and you sign on for a new mortgage term.
The time is now to spring into action, up to three months ahead of your mortgage renewal deadline...
Historically the choice of a variable rate mortgage over a fixed term has allowed borrowers to save in interest costs...
Loan Amount is often the critical component of your financing. This is particular true in the case of a property purchase. The loan amount will drive your other considerations. You may have secured a great low rate, but if you lender is only prepared to provide you a loan equal to 60% of purchase price or appraised value, are you prepared to inject additional equity?
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