If you’re one of many whose mortgage is up for renewal in the next year, this article is for you. Although moving your mortgage to the right lender might seem complex, it’s usually simpler than you think and it could potentially save you money in the long run. We’ve outlined some of the top considerations below. 

Why would I want to switch lenders? 

At the end of the day, finding the right mortgage lender for your needs is why you would want to consider switching. A common misconception is that interest rate is the only factor to consider, but some providers also have things like hidden terms that could have a negative impact later. It’s important to talk to a mortgage expert to help you choose the best term or product for you. Many lenders also have incentives to cover basic fees for those who want to make the switch, make sure you check those options out when making your decision. 

In an ideal situation, beyond an attractive cash bonus, a mortgage provider can help support all your financial needs. What your needs look like is individual to you and your financial situation. This could include:

• Ongoing communication & onboarding support
• Mortgage features (prepayment options, deferral, ports)
• Wholistic banking solutions
• Clearly outlined requirements for approval
• Mortgage advice

What else should I consider when switching?

When considering switching lenders, it's important to review your short-term and long-term goals. Ask yourself:

• Am I planning to sell my home in the near future?
• Is a retirement or a job change coming up that could impact my monthly budget?
• Are there any significant expenses I need to prepare for?

Assessing your short and long term goals, and planning for the unexpected, will help you renew your mortgage that works the best for you. 

Additionally, it's important to understand the distinctions between mortgage solutions such as fixed and variable rate mortgages. This can be a great opportunity to talk to your mortgage expert. You may have doubts about the right decision for you, but an expert will be able to talk through market conditions and economic factors. By sharing their knowledge or pointing you to online resources, they will help you feel empowered to make the best choice for your situation. 

How soon should I start to plan to switch?

To avoid prepayment charges, starting the process of switching lenders 30-45 days ahead of a mortgage’s maturity date is ideal. And, if you’ve missed that window you can absolutely still make a move. Working with a mortgage advisor can help you review the value of your current mortgage and determine the best approach for your situation.

Does it cost to switch?

This will vary across different lenders so it’s important to get that information from any lender you're considering. For example, at ATB, for a straight transfer in, we will cover up to $1500 worth of fees for registration costs and an appraisal. There is also a chance your current lender might charge a processing or discharge fee so make sure you check into that. 

I’m ready to switch, what happens next?

Prepare for your conversation with lenders by getting your current mortgage information and any renewal offers you might have together as well as the following documentation:

• Income like a paystub, T4s, taxes for self-employed.
• A copy of your fire insurance.
• A copy of your most recent mortgage statement, or something showing the current balance and account number.

Your new lender will require you to apply for the mortgage with your current info which includes, submitting a mortgage application, and undergoing a credit check. At ATB, we partner with First Canadian Title to order a payout statement from your current lender and to help with registering ATB on the land title.  

While choosing to renew your existing mortgage with your current lender could ultimately be the right choice for you, taking a step back can be rewarding. By using the time to evaluate your lender, it could lead to greater cost savings and a lender who partners with you to create a holistic plan for your future goals.