Finally some good news – all homeowners now have better options for mortgage transfer on renewal. The Office of the Superintendent of Financial Institutions (OFSI) has announced that homeowners should have options on renewal of their mortgage at maturity or if they want to renew early.
Previously any homeowners wishing to transfer their mortgage to another lender at or before maturity of their term had to meet the stress test requiring the homeowner to qualify at the greater of the benchmark rate or the contract rate plus 2%. Due to higher rates currently the qualifying rate was contract plus 2%.
This policy has now been waived for all homeowners in Canada. This policy limited options for homeowners. All homeowners now have better options for mortgage transfer on renewal.
This new policy for all homeowners will provide a big benefit to homeowners as they aren’t locked into only a renewal rate with their existing lender at maturity or earlier.
If you are unclear about your renewal options or want to discuss your specific situation, reach out to your independent mortgage broker. This could provide lower rate offers instead of taking what your existing lender is offering.
With other new rules coming out in December in some cases we have clients who could receive lower rates due to the type of mortgage. We recommend you get accurate information before making any move.
Always consult a professional before making any big decisions. We are here to help!-