How to switch your mortgage
The process of switching your mortgage may seem daunting, but with the proper research and preparation, it can be a smooth and beneficial process.
Switching your mortgage can be a smart financial move for several reasons:
- Save money
If you're currently paying high interest rates, switching to a better rate can lower your monthly payments and save you money. - Get a better term
Switching your mortgage allows you to take advantage of more favourable terms and conditions. Maybe you want to switch from a variable rate to a fixed rate or shorten the term of your mortgage to pay it off faster. - Access equity in your home
If your home has increased in value since you first took out your mortgage, you may be able to refinance and borrow against that increased value to fund home improvements, pay off other debts, or invest.
Here are the steps to take to switch your mortgage:
- Do your research
Start by checking out the current interest rates and loan options available. Look for lenders who offer competitive rates and favourable terms that align with your financial goals. Remember, the goal of your research is to find a mortgage that not only saves you money but also meets your specific financial needs and objectives. - Get the paperwork ready
Start by gathering your most recent bank statements, proof of income, bank statements, and tax returns. Lenders will also require information about your current mortgage, such as the outstanding balance, interest rate, and loan term. It's also a good idea to review your credit report to ensure there are no errors or discrepancies. - Find a lender
Start by checking with your current bank or mortgage lender to see if they have any offers for existing customers. Then, take the time to research other lenders and compare rates and terms. It’s important to look for a lender who has expertise in mortgage refinancing and can offer competitive rates. - Make the switch
Your lender will work with you during the mortgage application and once it’s approved, you'll receive a loan estimate that outlines the terms of your new mortgage, including the interest rate, closing costs, and monthly payments. Carefully review this document to ensure everything is accurate and meets your expectations, then proceed to lock in your interest rate. This will ensure that your rate remains fixed until your new mortgage closes.
After that, it’s a matter of signing the necessary paperwork and paying any closing costs or fees. Your old mortgage will then be paid off, and your new mortgage will take effect. - Talk to one of our mortgage experts today!
If you're looking to save money, improve your loan terms, or access the equity in your home, switching your mortgage could be a great option for you. Our lenders are here to help give you expert advice and discuss your financial needs. Book an appointment online to get started!
