Comments on: Mortgage Tidbit

By: Elizabeth Blair

Elizabeth Blair — Tue, 27 Nov 2007 15:18:14 +0000

Sorry folks, I accidentally hit the submit key more than once, thus the three postings…….forgive me!
I’m a new Blogger!

By: Elizabeth Blair

Elizabeth Blair — Tue, 27 Nov 2007 15:10:21 +0000

When your 5-year term ends, YES, you can take your mortgage business to another lender and there is no “penalty” however beware that there are COSTS associated with switching mortgage lenders:
1. you will have to pay the cost that your lender will charge to prepare a discharge statement for your mortgage. EVERY bank charges a discharge fee, if you leave them, at the end of your mortgage term. The discharge statement fee can range from $150 – $300, depending on your lender.

2. You may also have to pay the cost of an appraisal, when you switch to a new lender. Any new lender needs to know what the fair market value is, of your home, before they will agree to advance mortgage funds on it. Appraisal fees can be anywhere from $150 – $350 depending on the square footage of your home and these are always ordered by the lender so don’t go and hire an appraiser yourself.

3. Legal fees – a new mortgage will have to be registered and you will need a lawyer to do this for you. The cost to register a new mortgage can be anywhere from $600 – $1,500 or more, depending on what you are having done.

Now typically, when you get a renewal notice from your lender (before your term is ending) and you do not like what you are being offered on renewal, you can do two things, 1) you shop the rates yourself and go back to them and negotiate the rate with them directly; or 2) you call me and I will shop the rates out on the market for you. Because I deal with over 40 lenders, I can let you know if you are being offered the best deal. If you have exhausted your efforts to negotiate with your own lender, you can choose to ignore your lender’s renewal “offer” and I can set up a new mortgage for you to take effect on your mortgage expiry date……it is that simple. I help clients switch all the time and it is a painless process.

Now if you are concerned about the “cost of switching”, I have a GREAT product just for that! I have a lender that will pay ALL the costs associated with switching your mortgage:

1) appraisal fee is paid
2) discharge statement fee is paid
3) legal fees are covered

So essentially, it is a NO COST switch that allows you to move your business without costing you a dime. Since I have the ability to negotiate discounts on your mortgage rate too, I can almost always guarantee a better rate than what your own bank is offering. Look me up (ww.missmortgage.ca) one month before your renewal date, and I promise to give you the best service!
Elizabeth Blair (905) 510-5785

By: Frank Bruno

Frank Bruno — Thu, 26 Jul 2007 18:26:49 +0000

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By: Steve Heath

Steve Heath — Wed, 24 Jan 2007 12:30:54 +0000

Phil S – My understanding is that the cleaning up also involves filing with the government that the lien on your house is no more, so there is a filing fee + legal costs… that said, they should have made more than enough on the loan that they could throw that in

By: Everyday Investor

Everyday Investor — Wed, 24 Jan 2007 04:36:44 +0000

Thanks for the great post. Sadly it does not surprise me. Many people assume that rates are just the way it is.

Fortunately, with more blogs like yours the word can spread.

By: Phil S

Phil S — Tue, 23 Jan 2007 23:34:43 +0000

I’ve never had more than a 1 term mortgage and I’ve never had anything other than a variable rate mortgage. I just recently paid off my mortgage and I thought everybody should look at their mortgage agreements! Apparently mine included a disbursement fee of over $200 to do the paperwork necessary to close out a mortgage! Over 200 bucks! I had no idea! And it’s to do what they’re supposed to do to clean up loose ends and it’s all automated, on a computer! Outrageous, I say! I wish someone would pay me an extra 200 bucks each time that I actually had to do my job.

By: Jon D.

Jon D. — Tue, 23 Jan 2007 21:10:37 +0000

When rates were low in ’04, and I was in the middle of the Canadian classic 5 yr fixed, I renegotiated to variable rate and sticking with the same payment amount. The fee I was charged was equalized in interest savings in 3 months.

I’m still in a variable (.95 below prime) and would never have it any other way.

Mortgages are like car insurance, every time they come of for renewal, I get 2-3 quotes and move on.

By: Kimber

Kimber — Tue, 23 Jan 2007 17:33:47 +0000

Not that surprised by the figure. People are lazy. Heck, I’m lazy. Lucky for me (and unlucky for lenders), I’m also cheap.

By: Canadian Capitalist

Canadian Capitalist — Tue, 23 Jan 2007 16:54:05 +0000

Ryan: We still have one year left on our first mortgage and like you, I haven’t renewed a mortgage before.

However, I would think that you hold all the cards and your current lender would try their best to match the best rate available elsewhere. I’d second CMB’s recommendation that you talk to a mortgage broker.

By: Canadian Money Blogs Reviewer

Canadian Money Blogs Reviewer — Tue, 23 Jan 2007 16:47:58 +0000

as far as I know, you can definitely switch lenders … and again using a mortgage broker will help you find the best deal in my opinion