A switch mortgage or transfer mortgage involves moving your current mortgage from one lender to another without changing anything except for the term and interest rate.
A switch is beneficial when you want to take advantage of lower rates in the market without changing any other aspect of your mortgage.
Within the term, there will be a penalty for breaking the mortgage, though often the savings in moving to another lender with a better rate will substantially outweigh the penalty. Doing a switch at the end of your mortgage term will allow you to completely avoid the penalty.
Another advantage of switch mortgages is that the lender who receives your new mortgage will not only cover the cost of an appraisal if it is needed but they will cover the cost of legal fees to move your mortgage to them.
To see if a switch is right for you, apply now or call 905-304-6963 and we will be happy to investigate it for you! Be sure to give us a 4-6 month time frame to facilitate the transfer.