Switching Mortgages and Renewal Tips
If you’re currently unsatisfied with the terms of your current mortgage, it’s well worth seriously considering switching your mortgage lender. So that you’ll be able to get the best possible value from your mortgage. In order to discover a variety of tips which have been designed to ensure that you’re well informed when it comes to your options when it comes to renewing your mortgage or switching mortgage providers.
- Switching Mortgages and Renewal Tips
Great tips on switching mortgage providers.
1. Switching Mortgages
Depending on your circumstances you may choose to switch mortgage brokers or to refinance your mortgage with a new mortgage broker. If you’re interested in a standard mortgage switch, will involves transferring the exact amount of your mortgage to a new mortgage broker, you won’t be accountable for paying any additional fees. However, it’s important to keep in mind that if you wish to switch mortgage brokers and increase your mortgage at the same time, you’ll effectively be refinancing your mortgage, not switching your mortgage. to set up an appointment with one of our Collingwood Mortgage experts call us or click the apply now button.
2. Fees for Switching Mortgages
Keep in mind that you may be charged fees from your original brokers, for choosing to switch or refinance your mortgage with a competing broker. While you may be able to switch mortgage providers without incurring any cost, your original mortgage broker may charge you a hefty penalty for failing to meet your end of your contract. As when you initially sign a mortgage, you are effectively legally obligating yourself to pay back your mortgage, plus interest by a fixed date.
3. Are the penalty fees still worth it?
You may be wondering why individuals would knowingly choose to switch their mortgage broker if it means that they’ll have to pay a hefty fee. The answer is that as interest rates have fallen significantly, in many cases individuals will be able to save tens of thousands of dollars in the long run, by switching to a mortgage provider who offers a lower interest rate and that it is well worth paying any penalty fee associated with switching mortgage brokers.
If you’re interested in finding out how much money you can save in the long term, by switching your mortgage over to our highly related firm, it’s well worth getting in contact with a member of our friendly team. As you may be able to pay off your mortgage and to own your home freehold years earlier than you expect if you decide to go ahead with the switch which our team proposes.
4. Does switching mortgages make sense for you?
There are a few important questions which you should ask yourself before going ahead and switching your mortgage broker. Firstly find out how much money you can expect to pay in the penalties which you’ll be likely to face. Next, consider the balance of your mortgage which you have left to pay and the current interest rate which you’re paying with your current mortgage broker.
Then try to calculate how much time is left on your current term and how much you currently pay each month, towards your mortgage, before figuring out how much you’d pay in monthly payments if you were to switch mortgage brokers.
5. What are the benefits of a variable mortgage rate?
As interest rates have plummeted in recent years and show no signs of rising, if you choose to negotiate a new mortgage, it’s seriously well worth considering opting for a variable mortgage rate. As each time interest rates continue to fall, the interest which you’ll pay on your mortgage will also decrease. Which should significantly increase your disposable income and in turn, your quality of life.
Remember that contrary to popular belief, even if you sign a mortgage with a variable interest rate, you’ll still have the option to lock down an interest rate which you’re happy paying, in the long term. Which is a great idea if you believe at any point that interest rates will rise again.
So if you’re interested in switching mortgage brokers in order to save thousands of dollars and pay off your mortgage sooner, it’s well worth getting in touch with our team at your earliest convenience for more information.