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 firstname.lastname@example.org or call me at 647-893-2535.
and benefit from competitive interest rates.” — These policy changes are to take effect Oct. 1, 2018.
Traditionally self-employed borrowers will write as many expenses as they can to minimize the income tax they pay each year. While this is a good tax-saving technique it means that often a realistic high annual income can not be established to meet mortgage qualification guidelines.
In other words, we don’t look good on paper...
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…
However, the truly unsettling idea about credit scores and their relation to home financing is the fact that most people do not even know they are extremely important even after you have been approved…
On Wednesday May 30, 2018, the Bank of the Canada again maintained their overnight rate which means no change to your interest rate. Let’s not forget that interest rates are still low and this is a great time to take advantage.
As the spring market has been in full swing right now, here are a few things that might’ve been on your mind lately.
News & media. There has been A LOT of buzz in the past few weeks about the housing market taking a major plummet. One of the key factors I have been discussing is how 2017 was an exceptional year. Meaning, these numbers were so far off trend they are skewing results and thereby allowing the media to develop a news frenzy on how the housing market is plummeting...
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