{"id":21832,"date":"2022-08-05T08:00:00","date_gmt":"2022-08-05T12:00:00","guid":{"rendered":"https:\/\/www.zolo.ca\/blog\/?p=21832"},"modified":"2022-08-03T10:33:08","modified_gmt":"2022-08-03T14:33:08","slug":"renew-mortgage-and-switch-lender","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/renew-mortgage-and-switch-lender","title":{"rendered":"How to Renew Your Mortgage and Switch to a New Lender"},"content":{"rendered":"\n\n\n<p>When switching mortgage lenders, starting the process early, about four months before your current mortgage term expires, is essential, so you don&#8217;t miss out on any options. You can either stick with your current lender or switch to a new one. It&#8217;s important to look at all choices to decide what&#8217;s right for you.<\/p>\n\n\n\n<p>There are three key steps involved when <a href=\"https:\/\/www.nesto.ca\/renewal-refinancing\/mortgage-renewal-process-how-to-renew-your-mortgage\/\">renewing your mortgage<\/a>:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Determining your mortgage needs<\/li><li>Planning four months before renewal<\/li><li>Locking in at least 30 days in advance<\/li><\/ol>\n\n\n\n<p>Of course, that&#8217;s not all that occurs during a mortgage renewal. If you plan to switch mortgage lenders, you also need to know the costs and whether you should switch lenders to take advantage of better interest rates or options as a borrower. Pro tip: it&#8217;s okay to shop around. It&#8217;s encouraged.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"<strong&gt;signing-and-switching-costs<\/strong&gt;\"><strong>Signing and Switching Costs<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" loading=\"lazy\" src=\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2018\/11\/A-mans-hands-using-phone-at-home-with-a-laptop-on-the-table-1024x683.jpg\" alt=\"on the phone online mortgage transactions   low mortgage rates renegotiate\" class=\"wp-image-9524\"\/><\/figure>\n\n\n\n<p>There are several fees when it comes to switching lenders. In many cases, the new lender will cover these costs to get your business, but always ask upfront to be sure.<\/p>\n\n\n\n<p>Standard costs can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Setup fees with the new lender, which may include discharge, registration, transfer or assignment fees from your current lender<\/li><li>An appraisal fee to confirm the value of your property may apply in some circumstances<\/li><li>Other administration fees may exist depending on the lender and the province you reside in<\/li><\/ul>\n\n\n\n<p>In some situations, early mortgage renewals can help secure better interest rates. Therefore, if you&#8217;re renewing your mortgage in a rising rate environment, it&#8217;s always best to lock in your renewal early to save that rate. This is particularly important if you&#8217;re concerned about an interest rate increase impacting your sense of financial security.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"<strong&gt;how-to-switch-to-a-new-mortgage-lender<\/strong&gt;\"><strong>How to Switch to a New Mortgage Lender<\/strong><\/h2>\n\n\n\n<p>Switching your mortgage to a new lender at renewal is a little more involved than simply renewing with your existing lender, but the added time can save you money down the road.<\/p>\n\n\n\n<p>First, you need to consider the costs when you decide to switch. While there are expected costs involved with changing lenders, such as those we previously spoke about, like appraisal and set up fees. In most cases, the new lender will cover these costs on your behalf to earn your business.<\/p>\n\n\n\n<p>When signing the registration documents that are part of your mortgage contract, you may also have to meet with your lawyer or notary.<\/p>\n\n\n\n<section class=\"wp-block-zolo-related flex items-center py-6 leading-tight border-t border-b border-blacklight undefined\"><p class=\"font-serif pr-6 md:pr-12 mr-6 md:flex-shrink-0 border-r border-blacklight\">Related content<\/p><p class=\"related-link w-full my-0\"><a href=\"https:\/\/www.zolo.ca\/blog\/how-to-negotiate-mortgage-rates-canada\">How to Negotiate Mortgage Rates in Canada<\/a><\/p><\/section>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"<strong&gt;how-do-you-switch-with-a-collateral-charge-mortgage?<\/strong&gt;\"><strong>How Do You Switch With a Collateral Charge Mortgage?<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" loading=\"lazy\" src=\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2021\/06\/understanding-prepayment-privileges-1024x683.jpg\" alt=\"can I switch my mortgage lender\" class=\"wp-image-18369\"\/><\/figure>\n\n\n\n<p>First off, there are two types of mortgages. One is a standard charge, meaning it only secures the mortgage loan detailed in your document. It doesn&#8217;t include any other debt or loan products you hold with your lender. On the other hand, a collateral charge mortgage is a method of securing a mortgage or loan against your property.&nbsp;<\/p>\n\n\n\n<p>If you have a collateral charge mortgage, your lender can lend you more money after you close without refinancing your mortgage and going through a lawyer.&nbsp;<\/p>\n\n\n\n<p>Switching lenders when you have a collateral charge mortgage can be extra tricky to navigate. That&#8217;s because your mortgage is registered differently as a <a href=\"https:\/\/www.nesto.ca\/mortgage-basics\/what-is-a-collateral-charge-mortgage\/\">collateral charge<\/a>.&nbsp;<\/p>\n\n\n\n<p>If you have a collateral charge mortgage and want to switch lenders, you may have to pay a fee that a standard mortgage holder would not. These fees cover removing the collateral charge from your existing mortgage and registering the new one. Most mortgages that include a HELOC are recorded this way.&nbsp;<\/p>\n\n\n\n<p>Without this collateral transfer mechanism and applicable fee, you would have to repay or transfer all loan agreements secured by the collateral charge, including car loans and lines of credit, to the new lender, which they likely would not love!<\/p>\n\n\n\n<p><strong><em>Tip:<\/em><\/strong><em> If you have a collateral charge mortgage, start shopping around at least four months in advance to leave room for the extra steps involved with switching this type of mortgage.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"<strong&gt;common-mistakes-to-avoid-when-renewing-your-mortgage<\/strong&gt;\"><strong>Common Mistakes to Avoid When Renewing Your Mortgage<\/strong><\/h2>\n\n\n\n<p>A mortgage renewal can sound and feel overwhelming. For that reason, there are several essential things to keep in mind to help ensure your mortgage renewal runs smoothly.&nbsp;<\/p>\n\n\n\n<p>First, try to avoid any of the following to keep all your options open:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Leaving your renewal to the last minute<\/li><li>Signing a renewal letter with your current lender without looking at other options<\/li><li>Failing to check whether your mortgage is registered as a standard or collateral charge<\/li><\/ul>\n\n\n\n<p>Every time you renew your mortgage, there&#8217;s an opportunity to save more money. Be sure to take full advantage of your options by starting the process early.<\/p>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"How to Pay Down Your Mortgage Faster\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/PSdr8xpZfEw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"<strong&gt;key-takeaways:<\/strong&gt;\"><strong>Key Takeaways:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Start looking at renewal options four months before your existing mortgage term expires<\/li><li>Be aware of lender switching fees, especially if you currently have a collateral charge mortgage<\/li><li>If you\u2019re renewing your mortgage in a rising rate environment, it\u2019s always best to lock in your renewal early to save that rate<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Before you switch lenders, consider the costs<\/p>\n","protected":false},"author":113,"featured_media":21833,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"guide":[],"class_list":["post-21832","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"acf":[],"zolo_excerpt":"","_links":{"self":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/21832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/users\/113"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/comments?post=21832"}],"version-history":[{"count":1,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/21832\/revisions"}],"predecessor-version":[{"id":21834,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/21832\/revisions\/21834"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media\/21833"}],"wp:attachment":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media?parent=21832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/categories?post=21832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/tags?post=21832"},{"taxonomy":"guide","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/guide?post=21832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}