There are many reasons why one would move their mortgage to a different institute. In all, it tends to boil down to their customer service experience. If the home owner has experienced poor service with their current lender, they will want to move to a new one. This could also mean if they do not have the limitations or services a home owner may want. For example if you are wanting to have your mortgage information online but your current lender does not have a sufficient customer portal, this may cause a problem. When a home owner switches their lender before their renewal date, there will be penalties associated with it. This means you have to make sure the positives of the new lender outweighs the lender you are currently with.
If you are simply wanting to move your mortgage to the other institution without taking any new funds, this would be called a Transfer/Switch. When this occurs, most of the time, the new lender will take on the cost of the penalty to have your business with them.
If you are wishing to take new funds out of your mortgage at the time of the Transfer/Switch this would be considered a Refinance. If you are wishing to do this, even to cover the penalties to leave your current lender, it gives you an opportunity to shop around to find the product that is suited best for your lifestyle and hopefully a better rate.
Getting a new product or better rate
There are times where it when it will be worth it to break your current mortgage for a different one. For example, if your current mortgage has a interest rate of 5% but you can now qualify for an interest rate of 3%, it may make sense to switch.
The reason to refinance is various on each individual and their financial goals.
As a mortgage broker, I am more than happy to sit down with you and see if refinancing your mortgage make sense. We will review what you are wanting from a lender, the current interest rates, the penalties to change lenders and the costs verse the savings. When we have done this I will give you my opinion on what I believe is the best option for you. When doing this, it will be in a pressure free environment as this is your financial decision. Contact me today so we can see what options there are for you!