Step One – Transferrable Mortgages
It’s important to know if your mortgage is transferrable. A good mortgage lender will be transparent about this during the signing of your mortgage, but occasionally they will attempt to avoid disclosing this fact, which can leave you in a difficult and potentially costly position.
Mortgages are either registered Collaterally or as Standard Charges. Generally speaking, Standard Charge mortgages are transferable to most institutions without fees, while Collateral mortgages are not. No matter the type of mortgage you have, the transfer is possible. It’s just a question of financial goals and incurred costs – which is something the experts at Spin Mortgage can help you understand.
Step Two – Pick Your Rate and Term
Pro-Tip: It is advised that you begin the discussion about renewal at least 120 days prior to its maturity date to ensure there is sufficient time to secure a rate. We are available anytime to discuss.
A renewal is a great chance to implement your financial and personal goals. By having a clear idea of those goals, you’ll be better able to select the type of interest rate and term you want. This is a big decision, as a misalignment of your renewal and your vision for the future can have a serious impact. We recommend talking to us to ensure you are accessing the term and rate that best aligns with you.
Step Three – Apply For Your Renewal
Renewal applications are very straightforward as long as your paperwork is in order. You’ll need to update your mortgage profile to provide current information, such as your employment and income information, debt and credit status, and current property value. We can help you by outlining everything that is required.
When you apply online, you’ll receive an immediate response that includes a list of required documents based on your profile.
Cost of Renewal/Transfer
If you’re staying with your existing lender, there is no fee for renewal.
Typically, there will be a fee charged by your existing lender to process the discharge so a new lender can take over the mortgage, generally between $75 to $300.
If your mortgage is registered Collaterally, you may be on the hook for a legal fee, which can range between $850 to $1,500.
Appraisals are covered in the majority of cases, as lenders want to ensure that their mortgage interest is protected. In the event that they’re not, the typical cost is around $350.