FAQs

Frequently Asked Questions

In 95% of the mortgages we do, there are no additional fees paid to us or to the lender. Yet the question of fees is important to ask. You may find these fees attached to special mortgage arrangements like second mortgages, B-lending or private lender mortgages. In any case where fees are applicable, you’ll be notified upfront, will sign a consent form detailing the maximum amount, and we’ll calculate the exact pricing of the loan for you.
Lenders charge you with a discharge fee (several hundred dollars) when you choose to switch to another bank or any financial institution. In some cases the new lender will be willing to take the fee upon them. Although this situation is rare, it never hurts to ask.
Most lenders today require title insurance as a part of the legal process. The cost ranges between $150-$300 or more. This insurance insures the lender’s investment in case the boundaries of the property are incorrect. There is an option to pay an additional charge and have this insurance protect you as well.
Refinancing midterm is your main tool to saving money. When refinancing, you have to take into consideration costs like penalty, legal fees, etc. We at Sneg Mortgage Team will call you whenever we think you may benefit from refinancing. Therefor we’ll do our best to avoid no-frills lenders or other restrictive mortgages that only let you refinance when you sell your property.
When you refinance, the answer is: yes. When you switch from lender to lender just to improve the rate you won’t be able to borrow more to cover the costs. This means that the cost of penalty and legal fees will be paid directly by you.
This unique feature gives you more flexibilities, as you are allowed to re-borrow what you already paid in principle. You’ll need to make sure that your lender has this type of mortgage and its included in yours. In this situation you do not need to refinance in order to pull some equity. Most lenders that have this feature will give you an access to the principle you paid down, after accumulating a required minimum (20K for instance).
A higher penalty with your current lender won’t always allow you to improve your mortgage midterm. Extending the term with a current lender is your way to enjoy the lower rates they offer. It also protects you from rate hike. Even when you stay with your current lender, consult with us. At times we see that the “extend and blend” offer that our clients got from their bank was not to their advantage.
In most cases, variable rate mortgages come with the best flexibilities. The no-frills mortgage will charge you much higher penalty, restrict your pre-payment privileges and prevent you from porting or blending your rate
Usually banks follow the overnight rate posted by Bank of Canada in a few days. In some cases the lenders won’t immediately follow, will follow partially (e.g. overnight rate went 0.25% down while lenders dropped their prime only by 0.15%), or will put a cap with a ceiling on how high your rate can go.
Yes you can. However, you’ll be limited to the rate your bank offers you at that point in time, which is usually not the best they can offer or the best in the market. If you are considering converting into a fixed rate: consult with us, sometimes you’ll save more with a new fixed rate mortgage.