Switch and Save Mortgage Toronto

Save $1000’s on your Toronto mortgage with our Switch and Save program!

The million dollar question always lies “Should I break my Toronto mortgage and pay the penalty?”

We have been experiencing historic low mortgage interest rates these days; many home owners are reassessing their current mortgage contracts including mortgage professionals themselves. You might have come to this stumbling block due to many various reasons. The most common are to lower monthly payments, or consolidate high interest debt. Well the answer isn’t always as easy as it might seem, there are many factors to consider before breaking your current Toronto mortgage contract and pay the penalty to obtain a lower interest rate.

Before you Switch and Save, know the facts...

1. Switch your Toronto mortgage on maturity or renewal date
   • All institutions will send you a renewal letter in the mail hoping you will sign. And NEVER post their best rate off the top
   • If you SWITCH with us, we will SAVE you money by shopping for the best rate, and NO penalties or legal fees will apply
   • Find out what is your balance on maturity?
2. Switch your mortgage BEFORE maturity date
   • Call your current lender and find out the penalty amount to break your mortgage before maturity date. (eg. IRD or 3 months interest?)
   • Will you pay the penalty with cash, or will you roll it into the new mortgage?
3. Switch and Save by using your existing equity to consolidate debt
• Calculate the total amount of debt you need to pay off
• What are all the penalties involved to pay off that debt?
• What are the total monthly payments you make to pay this debt?
4. Additional costs involved in addition to the penalty
   • Legal fees which some lenders will waive the legal fee or cover it
   • CMHC fees
   • Discharge fee
   • Appraisal fee which some lenders will waive the fee or cover it
5. Flexibility of the new mortgage
   • What are the maximum prepayment amounts
   • What are the penalties if you break the new mortgage

What figures should I compare BEFORE and AFTER my Switch & Save?

• Principal balance – What will be your new balance at maturity?
• Monthly Mortgage Payments – Every penny you save each month COUNTS!
• Interest to Maturity- How much money will you be throwing away on interest if you don’t switch?
• Cash flow differential – Increased profit for rental properties, what is your ROI?

An Example

Here is an example of the potential savings (without considering the penalty)

Senario:

• Current Mortgage rate = 5.5% Fixed
• Mortgage balance $325,000
• 2.5 years into a 5 year mortgage
• Monthly payments maintained at current amounts $1,832.70
• Originally amortized over 30 years

Old Mortgage

New Mortgage at 3.69% Fixed(not including penalty)