Most homeowners stay with their existing mortgage lender because they believe it is too time consuming to get a better mortgage rate.
If your mortgage renewal is fast approaching, then now is a great time to look at the many excellent options and competitive rates available. Lenders send out renewal forms just prior to renewal dates to those with good payment histories, with about 70% of homeowners sending it back without asking any questions! In today’s hectic world, that can be the easiest and best route, but you should ask yourself some questions before you sign on the dotted line. This is an important moment of opportunity. This is where an independent mortgage professional like us can help offer advice and options to help you get ahead!
Maybe your mortgage needs have changed. This is the time to decide. For example, you may want to consolidate high interest debt in with your mortgage or you may want to tap some of your home equity for a renovation project? Or maybe you are considering a cottage or vacation property? Are you confident you will get the best rate at renewal?
Having multiple lenders compete for your business is a great way to ensure you get the best rate for your situation. We deal with multiple lending institutions, including major banks, credit unions, trusts and other national and regional lenders, which means significant negotiating power behind finding the best mortgage to fit your specific situation
Switching your Mortgage
How easy is it to switch mortgage providers?
In simple perspectives, home buyers are free to change their mortgage companies at any point before the service begins. Although it gets a little more complicated when the mortgage servicing or repayment begins, Canadian borrowers can still switch mortgage lenders if perhaps you were able to shop around for lower interest rate lenders.
Also, once your mortgage term is up, you can decide to transfer your mortgage to another bank with lower rates. This is done by first enquiring from your current lender about the cost of moving the mortgage to another bank. Because a mortgage is a binding contract, you may also need to pay your current lender if you want to do a mortgage transfer to another bank prematurely.
Reasons to switch mortgage providers
There are plenty of reasons for switching mortgage providers. Let’s review the popular ones below.
- Get a lower mortgage rate
Lower mortgage rates are likely the best reason most borrowers choose to switch mortgage banks in Canada. Interests make a huge percentage of what you’ll incur in relation to your mortgage, so it makes sense to want to even consider changing mortgage lenders last minute.
- Increase your monthly mortgage payment
Unfortunately, not all mortgage products are easy to work with, and some may prevent you from increasing your monthly mortgage payment to pay off the debt sooner, leaving you with no choice but to start looking for how to switch mortgage providers.