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:
- Evaluate your current financial situation
Review your current finances to understand how your mortgage payments may be working for you, or against you. Perhaps you are in a better financial situation and can increase your mortgage payments to pay down your mortgage faster. Or maybe you have accumulated some debt, in which case debt consolidation with your mortgage payment could help you pay off those debts faster (and save money in the long run). - Do your research
Look for lenders who offer competitive rates and terms that align with your financial goals. Remember, the goal of your is to find a mortgage that not only saves you money but also meets your specific financial needs and objectives. - Get your paperwork ready
Gather your most recent bank statements, proof of income, and income tax returns. Lenders will also require information about your current mortgage, such as the outstanding balance, interest rate, and loan term. - Make the switch
Your mortgage lender will work with you through the steps of the mortgage application and review the rates and terms best suited for your financial needs. Make sure you carefully review all documents to ensure everything is accurate and meets your expectations. After that, it’s a matter of signing the necessary paperwork. Your old mortgage will then be paid off and your new mortgage will take effect.
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. Book an appointment today!
