While mortgage amortization (the length of time to payoff your mortgage in its entirety) is often 25 – 40 years, the interest rate and terms & conditions typically change every 1 – 5 years, with a few exceptions (often referred to as the mortgage term). This means that at the end of this preset period, your lender will contact you to update your interest rate based on interest rates at the time of renewal.
Although you may be tempted to renew with your current lender once contacted, the interest rate offered to you may not be the most competitive and you may qualify for a better rate. As a result of the relationships we have built with dozens of mortgage providers, we may be able to “move” your mortgage loan to another lender at much more favourable terms and interest rate. This is known as a mortgage switch or transfer.
Our most recent transfer (switch mortgage) application allowed an applicant to save a full 1.00% by switching their mortgage, in comparison to what their current (now previous) lender offered them.
Contact us to explore your options as this may translate to thousands of dollars in savings over the renewed term of your mortgage.
