Looking to switch your mortgage? Here's what you need to know

Is your mortgage up for renewal in the next four months? Has your current lender not given you the best rates and benefit for renewing? It’s probably a good time to consider switching.

Mortgage rates are constantly changing, and you may have heard about switching your mortgage. Whether you have friends who have switched and now have lower rates, or you’ve seen advertisements from lenders, it’s smart to evaluate your options every few years when it comes to finding the best rate for your mortgage.

While switching mortgages has several benefits, it can also raise questions. When’s the best time to switch your mortgage? How do you switch your mortgage? And, are there ways to make switching your mortgage easier?

What are the benefits of switching mortgages?

First off, you should consider switching mortgages when you find a new lender with better rates and/or more benefits. In fact, switching at the right time can save you thousands of dollars and help you to pay down your mortgage faster.‍

When should I consider a mortgage switch?

• You secure a great rate with a new mortgage lender that your current lender is unable or unwilling to match.
• You have a fixed term mortgage and want to take advantage of much lower adjustable rates (and you’re comfortable assuming the potential shifts in an adjustable mortgage).
• You have an adjustable mortgage and would like to move to a fixed term mortgage to lock in a rate that you’re comfortable with.

What are the downsides to switching mortgages?

In most cases, the benefits of switching your mortgage outweigh the negatives. Outside of any associated costs from your broker or bank, (more on that below), it’s mostly time and paperwork that’s required to switch mortgages (more on that below, too).

How much will it cost to switch mortgages?

The cost of switching mortgages varies. Most Canadian mortgage holding institutions charge a mortgage discharge fee. This amount varies, and you’ll find the amount in your current mortgage contract.

Some mortgage brokers—like Pine—help offset these costs. When switching your mortgage to Pine, you can receive up to $5,000 cash back to help cover these costs, and we’ll help you through all the details.

What documents will you need to switch your mortgage?‍

You’ll need the same documents that you require for any mortgage in Canada. These will include:

• A copy of the mortgage renewal/signing letter from your existing lender
• Proof of property insurance
• Your property tax bill
• An employment letter, proof of income, and payment stubs

How to get started

Whether you’re interested in a fixed or variable mortgage, the first step is shopping around for a new rate and confirming that a switch will benefit you and save you money.  

If you’re looking for a low stress, apply-from-home, and transparent mortgage experience, Pine may be for you. We’re committed to a customer experience that puts you first to save you money, and help you make sense of a complex process. We’ll take care of all the paperwork, and if successful, you’ll be pre-approved quickly, with the absolute best rate we can provide - no negotiating required.

Questions about switching mortgages? Our team is here to help.