Mortgages normally have a maturity date. You can either renew your mortgage term with your existing lender or switch to a new lender. When renewing a mortgage, banks typically offer relatively higher interest rates. In other words, switching directly to another bank with a lower mortgage rate can save on interest expenses.

For example: the renewal rate from the original bank is 5.7%, but transferring to another bank may offer 5%, a difference of 0.7% in interest. For a $400,000 loan amount with a 20-year repayment period, this could save up to $9,000 over 5 years. Moreover, you can also choose more favorable mortgage terms and conditions, such as prepayment amounts.

If you are considering switch your current mortgage, let’s schedule a call and talk about it!

A client once reached out with a crucial question: “Can I finance a car now? Will it impact my current mortgage application?” I’m glad she asked before making any decisions.

Consistency is important once you’ve submitted your mortgage application. To avoid jeopardizing your chances, discuss any changes in income, assets, or credit with your mortgage broker. Transparency is key to keeping your application on track.

Here’s what you should avoid doing until your mortgage is finalized:

1. Making Large Purchases: Significant expenses can alter your financial profile and raise red flags.

2. Changing Bank Accounts: Keep your accounts stable to avoid complications with your financial history.

3. Applying for New Credit Card or Closing Accounts: This can affect your credit score and overall financial stability.

4. Depositing Big Cash: Ensure you discuss any cash deposits with your bank or lender first to avoid potential issues.

5. Co-signing Loans: Taking on additional financial obligations can impact your mortgage application.

Always consult with your mortgage broker before making any financial moves. We’re here to guide you and ensure your application process goes smoothly.