Toronto Second Mortgage Broker

Renewal Process of a Mortgage

2019-06-08 Jun 8, 2019

A question that comes up fairly frequently in the renewal process of a mortgage:

If I switch my mortgage from my bank to another lender to get a better rate, are there any fees?

Neither we nor the new lender will charge you any fees. All legal fees and appraisal costs are absorbed by the new lender. However, your present lender may charge what is called a “discharge fee” for paying off your mortgage. This fee can fall anywhere from $75 to $125, but can sometimes be negotiated down to zero if you raise a real fuss. Saving .10% interest on a $150,000 mortgage saves you roughly $750 over 5 years, so the “discharge fee” is really negligible.

In any event, your situation may be unique and its always best to speak with your mortgage professional prior to your decision.


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