Weigh the Costs
Both options can be beneficial for homeowners, depending on their financial goals and circumstances.
However, it’s important to weigh the costs and benefits of each option and compare rates and terms from different lenders before making a decision.
Why a Transfer May Be a Good Option at Mortgage Renewal Time
It’s a big mistake to sign mortgage renewal documents without shopping the mortgage market or getting a second opinion from a mortgage broker because it can lead to higher costs and less favorable terms.
Mortgage renewal documents typically come from the borrower’s existing lender and offer them the option to renew their mortgage for another term without needing to go through the application process again.
Just signing the doc and sending it back may seem like a convenient option but it may not be the best choice and could cost you thousands.
By not shopping the mortgage market or getting a second opinion from a mortgage broker, the borrower may miss out on better rates and terms offered by other lenders.
Additionally, the borrower’s existing lender may not offer the best rates or terms available, as they may not have the same incentive to compete for the borrower’s business as other lenders.
Conclusions and Further Thoughts
It’s important for borrowers to shop around and compare rates and terms from different lenders before signing a mortgage renewal or committing to a mortgage transfer.
Working with a mortgage broker can also be helpful, as they can help borrowers find the best mortgage options for their specific financial situation and needs.
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE