Mortgage Switch/Transfer
A mortgage switch allows for the transition of a mortgage from one lender to another. This is typically done to change the interest rate, prepayment options or payment frequency.
Switching the mortgage does not allow for the adjustment of the principal amount of the loan, and may come with some considerations:
Mortgage discharge fee
Appraisal fee
Assignment fee
Legal fee
Example Scenario: Jennifer has a 1st mortgage with ABC lending in the amount of $500,000 at a rate of 6.99%. After speaking with a mortgage broker, she becomes aware of XYZ lending offering first mortgages at a rate of 5.99% and would like to secure the lower rate without changing the principal amount.