If you are thinking of moving to another property while still having a mortgage, then you may be considering various mortgage solutions and worrying about things such as having to pay land transfer taxes. You may also not be aware of whether or not your mortgage can be transferred to another property. The good news is, you can transfer your mortgage and it is generally a fairly easy process, as most mortgages in Canada are designed to be portable.
Talk to Your Lender First
If you are thinking of moving to another home then we would suggest that you first discuss the matter with either a qualified mortgage broker or your current lender. It should also be noted that most mortgages in Canada are portable, meaning they can be transferred over from one property to another.
However, your lender will value the property that you wish to move to, and in some cases, you may need to borrow more money to secure the new property. The transference of your mortgage may also involve a mortgage transfer fee, which can range anywhere from a few hundred to a few thousand dollars, depending on your lender and the value of your new home.
Credit Assessment
It should be noted that if you are planning on transferring your mortgage then you may be subject to far more stringent criteria. In other words, expect more paperwork and questions than your original mortgage, as you will have to adhere to the current criteria of your lender. These may be harsher or more demanding than they were when you applied for your mortgage the first time. In some cases, you may not be eligible to move your mortgage to your new home, as you may fail to meet their stricter requirements at the present time.
Making the Switch
When the economic climate is chaotic it can hard to move over your mortgage, especially if you are looking to upsize instead of downsizing. If you need to borrow more in order to move into a bigger home, then your current lender may prohibit it due to a lack of confidence, especially if the economic outlook isn’t optimistic. If the aforementioned scenario were to occur, then your only two options would be to pay any resulting early redemption penalties before switching to another lender or to stay with your current lender and remain at your current residence.
In some cases, you may be better off with a two or three year fixed term mortgage, so that when you do decide to move to another property, you are able to explore various lender options and are not restricted to one lender.
To learn more about transferring your mortgage to another property, call Northwood Mortgages at 888-495-4825 or contact us here.
