When your mortgage term ends, you don’t have to stick with your current lender. This is a great time to explore other options and potentially save money with a "mortgage switch."
What is a Mortgage Switch?
A switch means transferring your mortgage to a new lender without borrowing more money. This can help you secure a better interest rate, flexible terms, or improved service.
Do You Have to Stay with Your Current Lender?
The short answer is no. Many homeowners aren’t aware that they can explore other lenders when their mortgage comes up for renewal. This is an important time to review your options, ensuring you’re getting the best possible deal.
Your current lender will typically send you a renewal offer before your term ends. However, blindly accepting this offer without reviewing alternatives could cost you thousands. Savvy homeowners often rely on their mortgage broker to assess their options at renewal—or even annually—to find the best rates and terms. This proactive approach could help you pay off your mortgage faster and save money in the long run.
Why Consider Switching?
- Lower Rates: Rates fluctuate, and another lender might offer a lower rate that reduces your payments or shortens your mortgage term.
- Flexible Terms: You might find terms that fit your needs better, such as the ability to make lump-sum payments or increase your regular payment amounts without penalty.
- Better Service: If you’re unhappy with your current lender, switching could improve your experience.
- Incentives: Some lenders offer incentives, like covering appraisal or legal fees, to attract new customers.
Things to Consider Before Switching
- Fees: Some lenders may charge fees for switching, such as discharge fees or penalties for breaking your existing mortgage early. Ensure you understand any costs involved.
- Pre-Approval: Just like when you first got your mortgage, you’ll need to qualify with the new lender. Ensure you meet their criteria.
- Timing: Start looking at options before your renewal date in order to give you enough time to compare your options.
Contact me to explore if switching lenders at renewal could save you money. Let’s find the best solution together!