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Mortgages Options

Mortgages Renewals

You’ve heard about the switch mortgage and know that it means moving your mortgage to another lender but perhaps you don’t quite have a complete understanding of the whole story.

Why would I want to switch my mortgage to another lender?

There are several reasons why people switch their mortgages, but the primary reason is that another lender is offering a better interest rate or better mortgage terms. Another reason people switch is that they’re unhappy with their current lender. It happens all the time.

What happens when I switch my mortgage?

Essentially the new lender transfers over your current mortgage balance and the remaining amortization period on that mortgage. If you’re outstanding balance is $95,256 and the remaining amortization period is 21 years, then that’s what the new lender transfers over. Your new mortgage payments are then based on these numbers and the interest rate offered.

When I switch, can I refinance at the same time?
Short answer is yes. Without incurring fees, some lenders will permit you to refinance to the original mortgage amount while others have limits of between $1,000 and $4,000. You also have the option of doing a switch with a total refinance but you will be subject to fees similar to that incurred with registering a new mortgage.
What are the costs to switch my mortgage?
If all you’re doing is switching your mortgage to another lender then you should not be subject to any fees or payout penalties. Now, as I mentioned, if you decide that you want to switch and increase your mortgage amount or lengthen the amortization period, then the mortgage would have to be re-registered. If that’s the case, you would likely be subject to legal fees, appraisal fees etc.
What’s involved in switching a mortgage?
Switching a mortgage is pretty simple, all you have to do is provide us with your form B and a recent mortgage statement from your current lender. The form B is a form you would have received along with your legal documents when you first received your mortgage. You will also be required to fill out a mortgage application.
What are the costs to switch my mortgage?
If all you’re doing is switching your mortgage to another lender then you should not be subject to any fees or payout penalties. Now, as I mentioned, if you decide that you want to switch and increase your mortgage amount or lengthen the amortization period, then the mortgage would have to be re-registered. If that’s the case, you would likely be subject to legal fees, appraisal fees etc.

Can any mortgage be switched?

Most mortgages can be switched, however, there’s another mortgage out there that’s a bit different.

How long before my mortgage is up should I start the switch process?

You should think about switching your mortgage between 90 and 120 days before your renewal.

What happens legally when you switch?

Most people are unaware of the legal effect of switching lenders. When you renew a mortgage you are essentially starting the process again ie.

For more information contact The Wilson Team or call 1-855-695-9250

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