Top 5 List Of Reasons To Switch Mortgage Lenders

If your mortgage is maturing, chances are that you will know about it because your existing lender will start inundating you with mail and calls. This can start as early as 4 months prior to maturity. On your renewal documents, they will likely offer you a high rate to test you. We talk about this here. When you receive these solicitations, you may start to consider reasons to switch mortgage lenders. Here is a top 5 list of reasons to switch mortgage lenders:

1. To Get A Better Rate

The most common reason our clients will switch their mortgage to another lender when it matures is to get a better rate. It is always a good idea to check with us when your mortgage matures regardless, since even if you stay with your existing lender, you should be able to negotiate a better rate when you quote ours.

2. To Refinance

If you are refinancing your mortgage, the best time to switch mortgage lenders is at maturity. The reason is that if you refinance at maturity, you are a kind of “free agent” and there are no penalties. Other lenders may offer you products that your existing lender does not such as a secured line of credit.

3. Free Appraisal

If you switch lenders and are refinancing, often other banks will offer you a free appraisal as an incentive to bring your business to them. Another good reason to switch mortgage lenders.

4. Free Legals

Whenever you change something regarding your mortgage, like the lender, lawyers need to get involved. As an incentive to gain your business, other mortgage lenders will often pay for the legal costs to make the switch.

5. Reimburse Discharge Fee

The mortgage lender who wants your business wants to make it as painless as possible to switch mortgage lenders. They also don’t want it to cost you anything. So in addition to paying for the appraisal and the legals, they will often also pay the discharge (administration) fee that your existing lender may charge you.

So next time you start receiving those calls and mail from your lender, please consider talking to us first. It may be worth switching mortgage lenders or at least bluffing and getting the best terms!

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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