The Mortgage Perspective
Homeowners in Canada can benefit from a broader landscape of mortgage options. Canadian mortgages can have varying terms, conditions, and payments, which is why finding the right option for a transfer is key. sHelto Mortgage in Canada offers a comprehensive Switch/Transfer product, designed to facilitate a smooth transition for those looking to make changes to their existing mortgage.
Deeper Insights into Mortgage Renewal
Understanding mortgage fees, switching fees, and other costs can be a hassle when you don’t have the right partner. With sHelto, you can get the best rates for your mortgage without experiencing confusion, lack of transparency, or non-beneficial rates.
You can get the best mortgage switching rates for your Canadian home, with sHelto. Our experts understand the intricacies of differentials, transferring, and monthly rates, which is why you can trust us to handle the entire process.
A mortgage broker can offer valuable advice, comparing various mortgage providers and helping you navigate any associated legal fee or mortgage discharge fee.
Explore Various Switch Options Available in Canada
You can explore multiple mortgage contract options to help with understanding your opportunities. The homeowner landscape in Canada can be complicated at-first, but with our help you can navigate it with ease.
Whether your goal is to transfer variable rate mortgages or to transfer from an existing lender, you can get the best rates when you work with sHelto. You can also get your existing mortgage contract reviewed by our experts to make the best judgement about what rates are out there for you.
Transferring My Mortgage Payment to Another Bank
Initiating monthly payments or a mortgage payment transfer to another bank is a strategic move often influenced by the pursuit of better mortgage rates or terms. To facilitate this:
Contact your Current Lender: Discuss your intention and understand any penalties or prepayment fee associated.
Contact your Mortgage Broker: Evaluate your options with other mortgage lenders offering favorable terms. At sHetlo, we are happy to help you to find best lender that fits your bill.
Apply for Approval: Submit an application to the new lender and secure approval based on your financial profile.
Complete the Transfer Process: Once approved, coordinate with both banks to complete the transfer, ensuring all necessary documentation is in place.
Duration Before One Can Switch Mortgage?
If you are currently in a Variable rate mortgage, you can switch lender any time, and paying penalty of three months interest amount. In case of fixed rate mortgage, the penalty fees is calculated as per Interest Rate Differential(IRD) calculated by your current lender.
Cost to Transfer Mortgage to Another Lender
The costs associated with transferring a mortgage from the same lender to another lender can vary. Some of the potential expenses include:
Prepayment Penalties: If you’re switching at the end of the current term, there is no charge or penalty applies. However, we recommend you to discuss with your current lender
Legal Fees: Transferring a mortgage involves legal processes, and thus, you may incur fees.
Appraisal Fee: The new lender may require a property appraisal, which could be an additional cost to the borrower typically $300-$500
Administrative Fees: Both the current and new lender may charge administrative fees for processing the transfer.
Top Reasons Why Borrowers Switch during Renewal
Optimizing Interest Rates:
Borrowers can lower their interest rates, depending on what’s available to them for their mortgage, and benefit from lower payments. You can get better rates for both commercial and residential mortgages with ease.
Favorable Mortgage Terms:
Altering the mortgage term can lead to more manageable monthly mortgage payments, catering to the changing financial needs of the homeowner.
Myths about Mortgage Renewal
Myth: “You Must Renew with Your Current Lender”
Reality: Borrowers have the option to shop around and explore mortgage offers from different lenders to find the most favorable terms, interest rates, and conditions. Mortgage renewal is an opportunity to reassess your options and potentially secure a better deal.
Myth: “You Can’t Negotiate the Terms”
Reality: Borrowers can negotiate various aspects of your renewed mortgage, including the interest rate, loan term, and payment schedule. It’s advisable to leverage your good payment history and financial stability when negotiating with your lender or considering alternative lenders.
Myth: “Mortgage Renewal Is Automatic”
Reality: Your renewal may not be automatic based on your agreements and rates. Your rates may switch over to a higher “posted rate” if you haven’t checked your renewal process and confirmed with the agreement.
Myth: “Switching Lender Is Too Complicated”
Reality: In most cases, the process of switching a mortgage lender may be easier than applying for one in the initial stages. The process is highly streamlined as you can check for the best rates available with ease.
Myth: “Renewal Terms Will Be Identical to the Initial Mortgage”
Reality: Mortgage renewal terms can differ from your initial mortgage. Interest rates, loan terms, and payment schedules may change based on market conditions and lender policies. It’s crucial to carefully review the renewal offer and compare it to other options available in the market.
Myth: “You Need a Down Payment for Mortgage Switch”
Reality: Mortgage renewal typically does not require a down payment. A mortgage renewal is essentially the continuation of an existing loan, and borrowers are not required to provide a new down payment as they did when initially purchasing their home.