Renewal

In Canada, people tend to move frequently, sell and buy homes. Some mortgages restrict the transfer from the sold house to the new one purchased, to less than 60 days, which means you have to coordinate the sale and the purchase dates. When it’s a simple transfer with no additional funds, most banks won’t charge you a penalty or will charge you and reimburse later. In most cases, there is a need in new funds, or the individual's circumstances have changed. Then it's important to look at the numbers and compare refinance vs transfer.
With Credit unions, it might be difficult to transfer a mortgage as they act within specific geographical boundaries. If you have a more complex mortgage (with a line of credit or cashback, for instance) or need more money, the game changes. In most cases you’ll be better off looking for a new mortgage, that will save you much more. An extra attention should be given to the new mortgage regulations that came into effect in 2018. Under those regulations, porting a mortgage as is, becomes sometimes impossible, as the new lender has to reapprove the mortgage under much restricting rules
Because when considering a Mix and Blend with current bank, you should compare two scenarios: The first is to take a new mortgage with a new lender, while paying the penalty. The second is to stay with the current lender and mix your old mortgage terms with new mortgage terms offered by them. In this case there is no penalty. We frequently see, after calculating both scenarios that the client is better off taking a whole brand new mortgage .
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.
It’s easy. Once you get your bank’s renewal offer, just send it to us. We’ll review it, look at your finances, listen to you, your desires, wishes and plans, and calculate your numbers. We do a comprehensive review, so your decision will take everything into account. Feel free to approach us, as you are at the time to act, time with no penalty, no restrictions, just more choices to do the best for yourself.