Mortgage transfers normally are absolutely free, meaning that legal costs or appraisal fees to transfer your mortgage from one financial institution to another at the end of existing term covered by the new lender. A renewal transfer may offer you the lower mortgage rates in Toronto and, as a result, smaller monthly payments. The best time to start looking for better rate is as soon 3 to 4 month prior to renewal date. This way, you will get an idea of the current rates available to you and can make a better decision.
Most Canadians renew their mortgages with their existing lender, as a result often paying higher rates when the best mortgage rates in Toronto could be significantly lower. Renewal letters are sent by existing lender usually 30 days prior to the renewal date with posted rates that are always higher than their best rates. This strips you of the time needed to shop around for better rates and often leaves you with no choice but to renew with your existing lender.