Residential Mortgages

TRANSFERS

Home owners often think if they transfer their mortgage to a new lender that they would end up paying penalties on fees such as appraisals, legal, and other costs. This is not the case. You can transfer your existing mortgage at the maturity/renewal date without paying any fees. No legal, no appraisal, no CMHC/GE Capital, and no broker fees. The new lender pays all the fees including ours!

The important thing to remember is if you have a mortgage coming due for renewal; don't wait for the renewal notice! This is exactly what the bank expects you to do and you may end up paying a higher interest rate than necessary. Keep in mind that all mortgage renewal rates are set at the posted higher bank rates.

Some banks will give you a slight discount on the rate; however, this does not mean you are getting the best rate that you qualify for. Banks know that the majority of homeowners will keep their mortgage with their existing bank because of the misconception that it would be too costly to switch.

To ensure you are getting the best rate that you qualify for, call us at VKMS four months prior to the renewal date. We will get you the lowest rate available for up to four months. If rates go lower during this waiting period, you will get the lowest rate available. This is like insurance - only there is no cost to you.

It should be noted that the minimum term for all transfers is three years with a mortgage amount of at least $50,000. If you require more funds at the time you transfer, this transaction is considered a refinance and, therefore, all costs such as legal, appraisal fees would apply. However, some of our lenders make an exception and will allow an advance up to the original mortgage amount as long as it stays within the 75% loan-to-value.