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.
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.