While there can be some fees involved with switching lenders at mortgage renewal time (e.g., appraisal fees, assignment fees, legal fees), it doesn’t always mean forking out extra cash.
In Canada, switching lenders during renewal comes with no penalty, and this allows you to shop for the best rates and terms on the market.
Related Read: 6 Canadian Mortgage Myths Busted
In fact, in some cases, switching lenders might mean cost savings to access new offers like new terms, lower pre-payment penalties or flexible pre-payment options. With the new changes to mortgage rules, you can skip the stress test at renewal, making it a great time to take advantage.
Here are 3 tips to negotiate the best rate at renewal:
1. Shop around: look for lenders with the best rates who will cover fees to get your business. Don’t simply accept the first offer you get from your bank.
2. Use a mortgage broker: by using a mortgage broker, they can do one credit check instead of multiple lenders dinging your score.
3. Start the process early: 60 to 90 days before you plan to renew, so if rates go down during that period you can lock them in.
Get in touch to get help with switching lenders for your mortgage renewal!