CornerstoneCU - Switching your mortgage is easier than you think

When your mortgage rate comes due for renewal, make sure you're securing the best option available even if that means switching mortgage lenders. There's no reason to be saddled with a rate you don't like if there's a better one out there. Securing your mortgage rate with a financial instituion that can offer you the best rate while providing a high-end level of service can be crucial to your peace of mind.

Benefits of switching

There are many reasons why switching your mortgage to a different financial institution can be beneficial. Some potential benefits include:

A better level of service. You may not be satisfied with the support you've received from your mortgage lender in the past and are looking for a team or advisor that will support you.
Better interest rates. Not all financial institutions offer the same rates so it's important to consider all your options before you settle.
Different options around payment type and frequency. It's been a few years since you last locked in a mortgage rate, and your life may have changed; it's time to make sure the payment schedule for the next few years fits your current lifestyle.

What steps are required to switch your mortgage?

Book an appointment with an advisor (online or in person) and bring your proper documentation with you.
Book an appraisal. Your financial institution can likely find and book an appraiser for you, at your own cost.
1. If your mortgage is CMHC-SCHL insured, this step is not necessary.
Once your application is submitted and approved for preapproval, you can lock in a rate for 120 days.
Your advisor will then work with your previous mortgage lender to make sure all the transfer of necessary information is completed.
Once the process is complete, all you need to do is sign on the dotted line.

Although it's a straightforward process, there are a few things you should make sure to put on your checklist:

Consider more than just interest rate.

Interest rate is just one component of the bigger picture. You want to make sure you're switching to a place that can provide a high level of service and options when it comes to how your mortgage is set up.

Speak with a professional.

When meeting with an advisor, they can help lay out the process and make sure you're clear on what's needed from you.

Account for all potential costs.

There are costs when switching your mortgage that can include: appraisal fee, assignment fee, legal fees, or even a discharge fee (if you switch your mortgage before it's due for renewal).

Some institutions cover a certain portion of the cost, so make sure you consider that when you're making your decision.

What to bring to your first appointment with an advisor:

Employment/income verification
T4 slip
Recent pay stubs
Letter from employer
Income tax returns and notice of assessment (if self-employed)
Current listing of assets and liabilities

If you've been considering switching your mortgage as it comes due, make sure to speak with a professional to help you decide what's right for you.

Thinking of switching over your mortgage?
A Cornerstone advisor will look at your overall financial picture to help you decide which kind of mortgage fits in best with your situation and your long-term financial goals. They’ll be able to calculate whether a 30-year amortization will suit you, or whether it’s better to go with a shorter amortization period. Call us on 1.855.875.2255 to set up a meeting with a Cornerstone advisor.

Book an appointment with an advisor