You may have heard of the term 'switch' or 'transfer' your mortgage, which basically means moving your mortgage to a different lender. If you are thinking about switching or transferring your mortgage, or have no idea what that really means, here are a few helpful hints that you may consider.
Your current lender will send you a mortgage renewal notice in the mail close to the time of maturity of your current term. Please do yourself a favour and do not just sign and accept the lenders' interest rate and terms without giving me the opportunity to see if I can get you a better deal. Banks make a lot of money by relying on those individuals that just sign away and return their renewal notices. Remember; as mentioned previously, my services are absolutely free so you have nothing to lose!
When I find you a better deal and you're ready to make the switch, many times your legal fees and appraisal will be covered by the new lender, they want your business and would like me to place you there. If there are any changes whatsoever to the current mortgage, such as the mortgage amount, amortization, basically anything...you will most likely need to pay for legal and appraisal fees. Essentially the switch and transfer refers to exactly that, switching your current mortgage and keeping everything the same and intact while moving it elsewhere.
When your current lender finds out that you may want to switch, this is when they may call you and offer you an even better rate than what was quoted in your original renewal notice. What does that say about your lender? Shouldn't they have offered you this on the original renewal notice? I'm not by any means blacklisting banks or lenders because they are not all like this, but for the one's that have done this, they are not necessarily looking out for your best interest. They should quote you the best possible deal to begin with and not after to retain your business.
Switching your mortgage is quite simple. I will require some of your mortgage documents such as a copy of your current mortgage statement. In addition to this, I'll have you fill out my application form. All in all, this takes very little time and could potentially save you thousands of dollars. You may also take this time to re-evaluate your situation and maybe you would like to refinance. Pulling out some equity from your current home could be a good way to consolidate some debt or spend the cash as you wish. Granted, if you decide to refinance, you will need to pay legal fees and your appraisal as you will need to re-register your mortgage.
If you would like me to look at your current situation and advise you on whether it's best to stay put or move on to something different, I'd be happy to provide you with a free consultation. One quick note is that not all mortgages can be switched. Contact me today, you may just be pleasantly surprised with the outcome!
As always, I encourage you to contact me if you have any questions with your current mortgage or are looking for one. Please find me on facebook at Jason Nesseth | Mortgage Specialist | British Columbia and on twitter @jasonmortgages.
"Working with you for the life of your mortgage!"
Jason Nesseth with TMG The Mortgage Group Canada Inc. If you have any questions or comments about this blog, please feel free to call Jason at 604.375.7375, email jason.n@mortgagegroup.com or visit his website at jasonnesseth.com