TRANSFER OR SWITCH MORTGAGES

A transfer or switch mortgage is a regular mortgage that is currently with a particular lender but where the borrower would like to move it to another lender, usually to take advantage of a lower interest rate or better terms. Often the best time to consider a mortgage transfer is when your mortgage comes up for renewal. At that time more than any other, a borrower can often secure a better interest rate and more favourable options by moving to a new lender. In most cases, there is no cost to the borrower when transferring their mortgage as the new Lender normally covers any associated costs, such as the appraisal fees and transfer charges. Although in some situations clients may want to transfer their mortgage mid-term, by doing so they will generally be charged a prepayment penalty by their existing lender. Transferring mid-term needs to be carefully considered before making a decision as, depending on the interest rate and the term remaining, a mid-term transfer may be quite costly. In some situations, however, it may be worthwhile. To transfer a mortgage the new Lender will generally require certain documentation. This is because a new mortgage is not being registered but the old one transferred and therefore the original mortgage document along with other information is required prior to approving the mortgage transfer. Prior to transferring a mortgage, a Lender will go through a process of mortgage approval similar to that which was gone through at the time of the original mortgage application. If you have a question not answered here, email or call Frank at (604) 649-8244.

Go directly to the next article: Loan to Value 75-90% or the Full Article Listing. Information subject to change without notice.