MORTGAGE SWITCHES & TRANSFERS — WHAT YOU NEED TO KNOW
- johnathanmcquoid
- Jan 17
- 2 min read
Mortgage switches and transfers have become extremely popular — and for good reason.
Lenders are competing harder than ever to win your business, which means better incentives and better rates for borrowers who shop around instead of signing the first renewal offer they receive.
Here’s what you need to know 👇
📬 When your mortgage comes up for renewal
Your lender will usually send you a renewal letter 120 days before maturity (sometimes 6 months).
Most people simply circle an option, sign the letter, and mail it back — because it’s quick and easy.
But quick and easy can also be expensive.
❌ Your lender’s renewal rate is NOT always their best rate
Many lenders rely on the fact that most borrowers won’t shop around.
They hope you’ll accept the rate in the letter without comparing your options.
The competition between lenders is intense — and switching can save you thousands.
💸 What is a mortgage switch/transfer?
A switch or transfer means moving your mortgage from your current lender to a new one at renewal — without changing the mortgage amount.
Because it’s not considered a refinance, the process is simpler and gives you access to better rates.
💰 Most lenders cover your switching costs
Many lenders will allow you to roll up to $3,000 of costs into your mortgage balance to cover:
✔️ legal fees
✔️ administrative fees
✔️ transfer costs
This makes switching cash-free, which means you can move to a better lender without paying out of pocket.
🏦 Important: The mortgage amount must stay the same
If you increase the mortgage amount (for debt consolidation, renovations, or extra cash), that becomes a refinance, not a switch.
A refinance:
• requires a new appraisal
• has different qualification rules
• may have higher rates
A switch/transfer is ONLY when the mortgage balance stays the same (plus allowable transfer costs).
🔥 Why switching can save you money
Lenders often give their BEST rates to new clients, not existing ones.
By switching at renewal, you get access to those “new client” incentives, while your current lender may only offer higher loyalty rates and hope you don’t question it.
💡 Final Thought
Never sign your renewal letter without reviewing your options.
A 5–10 minute conversation with us can save you thousands of dollars over your next term.
If your mortgage is coming up for renewal, message The Frontline Mortgage Group.
We’ll compare your options, shop lenders on your behalf, and make sure you’re not leaving money on the table. 💬