How to switch your mortgage

Thinking about switching your mortgage?

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A mortgage transfer is the process of moving your mortgage from one provider to another.

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You would usually switch your mortgage when it is up for renewal at the end of the term, but in some circumstances, you might want to switch sooner. For example, you may want to refinance your mortgage to pay for renovations or to take advantage of a better offer.

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We met with Nicole Tumbocon, Personal Banking Advisor for Cambrian, to talk about how to switch your mortgage lender, and why you should consider transferring your mortgage to Cambrian!

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Why should I switch my mortgage to Cambrian?

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Reasons may be:

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• ‍You can get a better rate. “The rate you secured when your mortgage was established may no longer be competitive,” says Nicole. “Transferring a mortgage to Cambrian at renewal, or sometimes earlier, may get you a lower interest rate and reduce overall borrowing costs.”
• ‍You aren’t happy with your current prepayment privileges. At Cambrian, you can prepay up to 20 per cent of your original amount every anniversary date. Other lenders may offer a lower prepayment limit—such as 10 per cent—or a one-time prepayment option, or no prepayment privileges at all.
• ‍You want personalized advice. “A higher level of service can elevate your experience,” says Nicole. “At Cambrian, members receive professional, prompt advice tailored to your needs. We provide support to ensure you have the confidence to make informed decisions.”
• ‍You can simplify your finances by moving your mortgage to the same place you bank. Already a Cambrian member? By moving your mortgage over, you won’t have to make payments from different accounts.

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Switching your mortgage before your term ends

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If you’re switching your mortgage before your term ends, check with your lender about the penalty. A typical pre-payment penalty could be three months of interest or the interest rate differential.

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But note—"Paying a penalty to switch your mortgage does not necessarily mean transferring early is the wrong decision,” says Nicole. “The key is to compare the cost of the penalty against the potential long-term savings through a lower interest rate, improved mortgage features, or greater payment flexibility.”

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In a nutshell, the savings that come from moving your mortgage to Cambrian may outweigh an upfront penalty from another financial institution.

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And, if your existing mortgage term is ending, you can move it to Cambrian for free, because we cover your transfer fees.

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How to switch your mortgage to Cambrian

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We make the process simple:

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1. ‍Apply for your new mortgage online.
2. We’ll schedule a time to review your application.
3. Together, we’ll determine the best rate and term options and gather the documents we require.
4. In some cases, you may need to have your home appraised to determine its value.
5. Sign the final documents and fund the newly transferred mortgage!

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What fees does Cambrian cover when transferring your mortgage?

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1. We cover transfer fees

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When you transfer your mortgage to Cambrian, we cover the following fees:

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• ‍Title insurance fees. We’ll cover the fees for First Canadian Title to protect you in the event of title or land survey issues.‍
• Discharge fees. When you transfer your mortgage, your current financial institution must give up the rights to your property. This is known as “discharging” your mortgage. Cambrian covers up to $235 of discharge fees.
• Property valuation fees. As part of the mortgage transfer, we may require a property value appraisal to establish the value of your home, and we’ll cover the fees.

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2. We offer competitive rates.

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We offer some of the best rates in the market. On top of that, as a Cambrian member, you bank for free with unfee!

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3. We give personalized advice.

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“We strongly recommend scheduling an appointment with a mortgage advisor to complete a personalized mortgage review,” says Nicole. “We can calculate the break-even point, compare the total cost of each option, and help determine whether transferring the mortgage now or waiting until maturity will provide the greatest financial benefit.”

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Thinking about switching mortgage lenders when your term is ending?

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First, you must determine:

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• The mortgage term and interest rate you’re choosing
• The amortization period and how it will affect monthly payments
• If you want to add additional money for home renovations or debt consolidation‍
• And more!

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So, let’s talk!

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Apply to transfer your mortgage here.

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Need to know more about switching lenders? Book a meeting today!

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