Switch or Transfers
Switch to Another Mortgage Lender Without Paying the Costs…
If you are thinking that there are costs like appraisal fees, legal work and penalties in transferring your mortgage from one financial institution to another, think again.
But still, the often most neglected decision during the life of a mortgage is the renewal. Often, homeowners stay with their lender because they think it takes a lot of time to shop around for the best mortgage rate. And even thinking that they offer from their existing lender is the best mortgage deal available.
This is not true.
Most banks will offer renewing their client a discount of up to 0.25% off posted rates. And most of the time – negotiating a mortgage rate discount with the branch is a time consuming process that will not lead to the best mortgage rates often.
If you manage to negotiate the best mortgage rates, it’s usually a maximum discount of 1%. By shopping over 50 lenders we can usually get even better rates then your bank is offering. Best of all, at Invis – Canada’s Best Mortgage, helps you pay your mortgage off 50% faster with the CBM Smart Equity Program .
At Invis – Canada’s Best Mortgage, we work as a team and treat our client with utmost respect and privacy. Out best mortgage rates are posted and updated regularly to assure you that we are dedicated to finding the best mortgage solution that you need.
Frequently Asked Questions
Switching mortgage lenders for a lower rate
With today’s historically low rates, many Canadian homeowners are looking for advice as to whether they should move their mortgage for a better rate. You can switch to another lender at any time, although renewal is often when homeowners decide to transfer their mortgage. Some typical questions you may have:
1. Will I pay a penalty if I transfer my mortgage?
Answer: There are no payout penalties if you switch at mortgage renewal, otherwise there likely will be a penalty, although often paying the penalty to get a lower rate can save thousands.
2. If there is a penalty, what will it be?
Answer: Generally, you can expect to pay the greater of either a) three months’ interest, or b) the interest-rate differential (IRD).
With the IRD, your lender will expect you to pay the equivalent of what they will lose by releasing you from your mortgage and lending the money at current rates.
Often penalties can be rolled into the new mortgage so you don’t have to be out of pocket.
3. What happens when I transfer my mortgage?
Answer:Once you are qualified, your current mortgage balance and remaining amortization period are transferred to your new lender at the new rate, which your mortgage payment will be based on.
4. Can I use this opportunity to increase my mortgage for some needed funds?
Answer:Yes. Without incurring fees, our lenders will permit you to add on to the new mortgage as long as you don’t exceed the original mortgage amount.
Although each lender is different, you can typically add $2,000 and in some cases $5,000.
You also have the option of a total refinance if you need more, but you will be subject to fees similar to those incurred with registering a new mortgage.
5. How long before my mortgage renewal date should I start the process?
Answer:You should think about switching your mortgage 120 days before your mortgage renewal.
Many lenders provide a 120-day rate guarantee.
This also provides ample time to complete the process and avoids any last minute decisions.