Does it Make Sense to Transfer Your Mortgage?
A transfer mortgage – also know as a switch mortgage – involves moving your current mortgage from one lender to another without changing anything except for the term and interest rate.
We negotiate the best mortgage product on your behalf with multiple lenders – including banks, trust companies and credit unions – whether it’s your very first mortgage, you’re looking to renew an existing mortgage or you want to see if you can take advantage of lower available rates.
A transfer enables you to switch lenders for a better rate without changing any other aspect of your mortgage. For instance, you can’t access any of your home equity as part of a straight switch.
If you wait to transfer your mortgage upon renewal, you won’t face a penalty, but if you wish to break your current term early to take advantage of another lender’s offering, you’ll be charged to do so. Often, the savings earned while moving to another lender with a better rate will substantially outweigh the penalty, depending on how far you are into your current term.
In most cases, the new lender will not only pay for an appraisal, if applicable, but is also likely to cover the cost of your legal fees when transferring into their mortgage product.
There are also special transfer options when you’re in a collateral or readvanceable mortgage product and wish to change lenders.
We can help you decide if a transfer is your best option.