7 May 2018

In case you refinance at a higher interest rate than your existing one, the mortgage payments will also go up (if the amortization term stays unchanged).

According to the new rules, if you want to switch to another lender, you may have to undergo a new stress test. For some borrowers, this rule makes it impossible to change the bank, so they have less possibilities for negotiation with their existing lender.

Grant Rasmussen from CIBC says it’s better to start your home research about half a year before the renewal date. He recommends not to limit the homework to a conversation with your current bank. He says it’s important to talk to your financial adviser as well to recieve an updated look at your expenses and income and the way they have changed since you got your mortgage.

“Make sure you did all the necessary calculation and found the best option for your family”, – he says.

In any case – please talk to an experienced mortgage broker. In most cases simple transfer at renewal is free for client and could potentially save thousands of dollars. Even if you have mortgage and equity line of credit attached to your home we can still do a free transfer at the rate most big banks couldn’t match!