Transferring Lenders
Transferring your Mortgage to another Lender
Incredibly Many Canadians Renew their Mortgage with the same Lender because they Believe It’s Too Time Consuming to Shop Around – Or Think Their Existing Bank’s Offer is The Best Deal Available.
This isn’t necessarily true. Unfortunately, many of these same people simply accept that lender’s posted rate or slightly better. At 911 Mortgage Brokers – The Mortgage Centre, we’ll shop some of Canada’s leading lenders to compete for your mortgage so you can rest assured that we are working hard to help get you a competitive rate matched to the features and benefits suited to your unique needs.
Renewing… or Transferring your Mortgage to another Lender?
Things have likely changed since you signed your last mortgage agreement. Or maybe you’re at a different life stage where change is imminent. Your mortgage should fit your lifestyle, financial situation and future goals. When it’s time to renew your mortgage, our 911 Mortgage Brokers can evaluate your mortgage needs and determine whether your current mortgage is still the best fit. We’ll also shop your renewal to many of Canada’s leading lenders to help find the mortgage that is right for you.
What is a Mortgage Renewal?
Your mortgage is up for renewal when your mortgage term concludes, assuming you’re not at the end of your amortization period or have paid down your mortgage in full ahead of schedule. A mortgage term can last anywhere from a few months to 10 years, with five-year terms being the most common.
The term represents the length of time your mortgage contract is in effect with your lender.
If you still owe money on your mortgage when the current term is up, you’ll need to renew it for another term. At this point, our 911 Mortgage Brokers can evaluate everything that affects your mortgage including your interest rate, payment frequency, the length of your new term, and choice of lender. We will shop our lenders across Canada to obtain the mortgage that is right for you.
What to consider before renewing your mortgage
Consider your circumstances
• Has your income changed?
• Have your expenses changed?
• Has your appetite for financial risk changed?
• Are you starting a family or getting married, or had a change in your marital status?
• Do you need to pay for tuition, a wedding or another milestone event?
Examine your goals
• Do you want to be mortgage-free faster?
• Does your home need a renovation or major repair?
• Are you moving in the future?
• Do you want to check off items from your bucket list?
• Do you want to pay a lump sum on your mortgage?
• Do you have a plan if your income is lost or reduced?
Will my mortgage automatically renew?
renewed. Some lenders might have automatic renewals, which mean that your mortgage will automatically renew if you do not take any action. Automatic renewals indicate that you accept the terms and rates that your lender offers, which might not always be the most favourable.
Can you be denied a mortgage renewal?
You can be denied a mortgage renewal, as mortgage renewals are not guaranteed. If your financial situation has deteriorated, such as if you have missed mortgage payments on your previous mortgage, lost your job, or now have a significantly lower credit score, your mortgage lender might choose not to renew your mortgage.
What do I need to transfer my mortgage?
If you decide to switch lenders, you will need to complete an easy mortgage application as well as provide the details of your current mortgage which you will be able to find in your mortgage renewal statement. You will also need proof of income, proof you own your home and proof of property insurance.
What is a mortgage renewal statement?
Federally regulated lenders, such as banks, must send you a mortgage renewal statement (or let you know they will not be renewing your mortgage) at least 21 days before the end of your term.
A renewal statement outlines the following:
• The remaining balance of your mortgage
• The interest rate (with specifications that this rate won’t increase until your renewal date)
• The payment frequency
• The term
• Charges and fees that apply
If your current mortgage is not with a federally regulated lender, or if you haven’t received the mortgage renewal statement, it may be helpful to refer to your most recent Annual Mortgage Statement to obtain the particulars of your mortgage.
When can I renew my mortgage?
Just how soon can you renew a mortgage? Sure, you may be a few months away from your mortgage maturity date, but they say the early bird gets the worm! This phrase rings especially true with the mortgage renewal process.
While your current lender will likely send you that renewal slip sometime in the last 30 days of your mortgage term, you can usually start negotiating as early as 120 days before your maturity date. To ensure you’re ready, find the maturity date on your mortgage contract (it may also be visible through online banking) and count 120 days back on a calendar.
This is the time to do some research and meet with us. We’ll help you explore products and find a mortgage that’s right for you. Your new mortgage must fit your needs, your goals and your lifestyle!
Time is of the essence!
Contact us for a free mortgage renewal consultation as early as 120 days before the maturity date of your current mortgage. We will explore your mortgage options, lock in your desired rate and complete your transition to your new mortgage, smoothly and without any hassles.
Call Us Today at 289-318-0911 or Toll Free at 1-888-377-0911 for a free confidential consultation to discuss your options or apply online.
Our Service Areas
911 Mortgage Brokers – The Mortgage Centre offers services to clients across Toronto and the GTA, Vaughan, King, Aurora, Stouffville, Newmarket, Markham, Richmond Hill, Barrie, Innisfil, Orillia, Collingwood, Oshawa, Ajax, Whitby, Mississauga, Brampton, Caledon, Burlington, Oakville, Milton, Bolton, Hamilton, St. Catherines, Niagara Falls, Windsor, Kitchener, Waterloo, London, as well as far as Muskoka cottage country, Ottawa, Simcoe, and the rest of Ontario.
