Mortgage switches and transfers are becoming one of the more popular sources of revenue for certain lenders which means great incentives for borrowers as the banks and financial institutions fight for your business.
When your mortgage is up for renewal, your lender will typically send you a letter either 6-months or 120 days before your mortgage matures. When it is up for renewal and matures, you will need to commit to a new term and commit to a new interest rate. Most of the time, the bank’s offer is in the letter they send, and you circle your choice and mail it back; simple and quick.
But what happens when your lender isn’t offering you their lowest rate? Or is hoping you just circle one of the options and don’t look into the other options that are out there and available to you?
Most lenders will allow you to finance up to $3,000 back into your mortgage balance for legal fees, admin fees, and costs associate with moving from your current lender to them. With the move being cash free, you can take advantage of very low rates offered to new potential clients in order to win their business.
The mortgage amount (other than the $3,000 for costs) will need to remain the same though. When you change the mortgage amount, you are refinancing your mortgage, which moves you into a new category and changes the process as well as the different interest rates that are available to you.
For more information on mortgage switches and transfers please reach out to a Dominion Lending Centres mortgage professional. We will be able to tell you what kind of low interest rates and new mortgage privileges we are able to give you access to!
-Ryan Oake