Do you have a mortgage that has to be renewed within the next few months? Do you feel like you are not getting the greatest renewal terms and conditions from your existing lender? Then you probably should consider a switcher mortgage or mortgage switch.
What Is A Mortgage Switch?
A switcher mortgage is a type of mortgage that allows you to switch to a new lender. Switcher mortgages are typically done by homeowners who want to save money by switching to a mortgage with a lower interest rate, or who want to change the terms of their mortgage, such as the length of the repayment period.
Refinancing, renewing, switching, porting: what’s the difference?
Refinancing, renewing, switching, and porting are some of the many options you may have when it comes to your mortgage. It can be confusing at times to differentiate them from one another, so here’s a brief explanation of each option:
Refinancing involves taking out a new mortgage to replace your existing mortgage. This is typically done to save money by getting a lower interest rate or to change the terms of your mortgage, such as the length of the repayment period.
Renewing involves extending your existing mortgage contract with the same lender. This typically happens at the end of your mortgage term when your current contract is about to expire.
Switching involves moving your mortgage with a different lender. This is also known as a mortgage transfer or a remortgage.
Porting also known as mortgage portability, involves transferring your existing mortgage to a new property with the same lender. This allows you to keep the same mortgage terms when moving to a new property.
What are the benefits of making a mortgage switch?
If you are unhappy with your current mortgage lender or the terms of your loan, you may want to consider switching to a new lender that offers better rates or terms. This can provide you with a more favorable mortgage and a better overall experience with your lender.
What are the possible drawbacks and risks of making a mortgage switch?
It can be time-consuming and complex to compare different mortgage options and go through the application process.
Another downside to switching is that there may be costs associated with it such as closing costs and fees for breaking your current mortgage contract.
Additionally, switching mortgages could potentially result in a higher interest rate, which could increase your monthly mortgage payments. It’s important to carefully consider these factors and weigh them against the potential benefits of switching before making a decision.
We make mortgages work for you
Premiere Mortgage Centre helps you navigate the complexities of mortgages and can help you find a mortgage that makes you happy. Our team carefully compares different options from a range of lenders and provide advice on which type of mortgage might be best for you.
And since we’re partnered with a diverse range of industry-leading lenders in Canada, we can secure a better interest rate. Beyond that, we take care of much of the paperwork and legwork involved in applying for a mortgage, making the process smoother and less stressful. Reach out to us today by clicking here.