What are the fees involved in switching my mortgage to a new lender? What’s the catch?
Transferring your mortgage to a new lender can involve legal fees, appraisal fees, assignment fees, discharge fees, registration fees or other costs. These fees can increase your debt by about $3,000. If they exceed that amount, you will require a refinancing scenario. Sometimes, a lender will cover some or all of your transfer fees, to encourage you to come on board with them. They may also be able to fold your transfer fees into your principal mortgage balance. In other words, you can pay them off over time, with your monthly payment schedule. Given how easy it is to work with a Richmond mortgage broker to do this, there is hardly any catch. You’ll still come out with beneficial savings, even if it’s only a small amount. In fact, it usually wouldn’t make sense not to shop for a new lender, when your mortgage comes up for renewal. Plus, if you received your mortgage prior to 2016, you may be exempt from having to undergo a stress test when switching providers. Please note: transferring a mortgage is usually not advisable if you have a collateral mortgage. However, it is still possible, though more expensive. Speak to a real estate lawyer, or a professional mortgage broker for more information about your case. Please see more on our website.