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!