Is Your Mortgage Renewal Coming Up? Why Transferring Could Save You Thousands
Are you an existing homeowner with a mortgage renewal on the horizon? While many homeowners simply sign the renewal papers sent by their current lender, you may have a better option: transfer your mortgage.
Why Consider a Mortgage Transfer?
The primary reason homeowners choose to switch lenders at renewal time is to secure a more competitive interest rate. Often, current lenders rely on “loyalty” and don’t offer their best possible rates to existing clients. By exploring a transfer, you can shop the market for a better deal.
While less common, some homeowners choose to transfer because they are dissatisfied with their current lender’s service or digital tools. Whatever your motivation, the goal is the same: making your mortgage work better for your lifestyle and budget.
What Are the Costs Involved?
One of the best parts about a mortgage transfer is that many lenders offer incentives to win your business:
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Legal Fees: Many lenders will cover the standard legal costs associated with transferring the mortgage.
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Appraisal Fees: Lenders often attempt an automated electronic valuation of your property to save time and money. If your property doesn’t meet the criteria for an automated value, your mortgage broker may need to order a full appraisal.
The Discharge Fee: The one cost the homeowner typically covers is the existing lender’s discharge fee. This is an administrative fee charged by your current bank to close your account and remove their charge from your property title. The new lender will then register their own charge with your updated mortgage details. They may allow you to carry the discharge fee into your new mortgage.
Is a Transfer Right for You?
Before making the move, it is essential to consult with a mortgage professional. We perform a “break-even” analysis to ensure the move is actually worth your effort.
For instance, if the interest savings are minimal—such as a difference of only 0.10%—the discharge fees and time involved might outweigh the savings. In those cases, we may ethically advise you to stay with your current lender.
Experience the Trusterra Difference
At Trusterra Mortgage, we pride ourselves on providing unbiased, experienced, and ethical advice tailored to your unique financial needs. We don’t just find you a rate; we find you the right strategy.
Ready to see if you can save? Contact us today for a free consultation and let us help you navigate your next mortgage transaction with confidence.