Transfers and Switches
Orleans Mortgage Broker
A mortgage switch or a transfer mortgage is when you move your current mortgage from one lender to another. The only thing that varies with a mortgage transfer is your term and interest rate. The process includes the new lender approving your home loan’s takeover and paying the current lender’s due amount.
Next, after getting the pending amount, the existing lender releases the property papers and issues a no due to certification to the borrower. These papers are sent over to the new financier. Once this process is done, you must pay all the outstanding future EMIs to the new lender as per their interest rate policy.
There are two scenarios where people would utilize a Transfer or Switch:
- When your mortgage term is up, the mortgage is renewed with your existing lender. If you opt to transfer/switch your mortgage at renewal, you will not pay the penalty. However, you will need to qualify, and there may be legal and appraisal costs linked with the switch, just as you would with a new mortgage.
- The second scenario is when you go for transfer/switch between the term of your mortgage. If you break your mortgage, there will be a penalty. However, the savings you’ll often get by switching to a lender with better rates will more than make up for it. In most cases, the new lender will cover the expense of legal fees. If you are fortunate, they might even cover the appraisal expense if one is required.
How we can help
If your mortgage renewal date is around the corner, or you are thinking of a transfer/switch to get a better rate, then a mortgage broker can assist you in making the right decision. At TopRankinMortgages Inc, we can provide advice on your case and assist you in selecting a lender who will not only give you the best rate but the most suitable mortgage product too!