Transfer Mortgage to another bank

You don’t want to have so much money going toward your mortgage every month that you can’t enjoy life or take care of your other financial responsibilities.

Dave Ramsey

How to Transfer Mortgage to Another Bank

Transferring a mortgage is usually done with the purpose of renewing your mortgage loan contract. When your mortgage term comes to an end, it’s time to renegotiate your mortgage contract. It is extremely important for you to consider all your contract renewal options.

The first renewal offer will come from your existing lender. Banks tend to reach out to clients early to scare the client into signing at a high renewal interest rate. The first offer from your existing bank will come four months early. Use this first offer from your bank as your alarm to call your local GTA mortgage broker to inquire about available rates. At Dream Key Mortgage, we are able to shop your rate amongst hundreds of lenders, ensuring you get the best interest rate. Further, we can lock your mortgage rate in up to four months early to your renewal date to ensure you transfer from one mortgage to the other perfectly.

The difference between your current lender offer and switching to a new bank could be quite substantial because mortgage companies will always give better rates to new customers over current customers. This is how the banks are able to maximize and post record breaking quarterly profits. If you look at an average mortgage of $500,000, you can save up to $10,000+ in the span of a 5-year mortgage term just by transferring your mortgage to a less expensive bank. Now this money can be used to pay your loan down or simply be put to use elsewhere.

Banks vs Mortgage Brokers:

  • Banks can’t shop your rates among hundreds of lenders.

  • Banks will try to scare you into signing early at a high renewal rate.

  • Banks will charge you fees that independent mortgage brokers wont.

  • Banks save their best offers for new customers only.

Competitive Pricing when you use a Mortgage Broker over a Bank in Toronto's Lending Market.

The guys at Dream Key were really easy to work with. They were flexible, reliable, prompt and very knowledgeable about the whole process. Their insight was accurate, they advised us well, and fought to get us a great rate. We will definitely be using their services in the future and recommend them to friends and family.

Shannon Kate Valliant

By contacting your local mortgage agent, you can get a lower rate than from a new bank and get a better mortgage for your current financial situation. A mortgage broker will shop for a new mortgage loan between top industry lenders and can provide a mortgage that suits your current financial situation along with your short and long-term financial goals. A bank cannot shop your mortgage amongst several lenders like a mortgage agent can.

When using a mortgage broker, your renewal will be free of cost. New mortgage lenders will eat the cost of the appraisal (if required) and transfer fees themselves. Mortgage brokers are now able to transfer all types of mortgages including HELOCK and collateral charge mortgages.

The process of renewing your mortgage via mortgage transfer is straightforward. Dream Key Mortgage will take care of your qualifications and will find a suitable lender for you. The best part is that because you’ve already been approved by the old mortgage rules, your new application will be considered by the same, old mortgage rules as before, so no new stress test is required.

If you have any further questions or would like to get a second opinion on your upcoming mortgage renewal, please get in touch! We’d love to hear from you: 647-748-9971

Ready to Talk

Prior to contacting a realtor and before looking for properties, the first thing you should do is to get a Mortgage Pre-Approval. Once you know your home buying price range, you can efficiently start your search.

By |2019-06-03T16:22:12+00:00June 3rd, 2019|Mortgage How To's|

About the Author:

Mark Barykin
My name is Mark Barykin and together with my business partner and long-time friend, Stewart DeBarros, I am excited to introduce Dream Key Mortgage: a family-oriented Toronto Mortgage Brokerage offering a wide range of customized mortgage solutions to clients of every background. It was after studying Advanced Business Administration and later began working in the field that I found myself eager to find something with purpose, that I enjoy doing on a daily basis. A personal life goal for me has always been to make the world around me a better and happier place; and so, when I got into the Mortgage Industry many years ago, I found a great deal of pleasure in helping others improve their financial situation.