Mortgage Transfers Toronto

Under Canadian law, you can only transfer a mortgage if you are buying a new property and you are at the same time selling the current one. This is meant to help people who are relocating from one part of the city to another and who can no longer stay in their current home. Transferring a mortgage is different from renewing one. Renewing a mortgage is for people who are not happy with the terms of their current mortgage, usually at the end of the mortgage term, while transferring a mortgage is meant for people who are happy with the conditions of their mortgage and who are usually in the middle of a fixed-term mortgage.

Note that not all lenders allow you to transfer a mortgage. You should, therefore, ask your lender if they allow this before negotiating for your original mortgage and if you suspect you may be relocating due to work or other factors. You should also confirm from your lender if they allow for inter-city mortgage transfers because some do not. A mortgage transfer has to be processed by the original lender since you are only transferring the mortgage from one property to the other.
If you have found a better house and you want to sell the old one, most likely the mortgage for the new one will be larger. You need not worry because lenders offer what is called an extend or a blend. This is basically a weighted average of the existing mortgage plus interest rate and the money required for the new mortgage.

Most variable-rate mortgages cannot be ported. At RMA Mortgage Broker, no matter what your current mortgage is, we will negotiate with the lender to facilitate the mortgage transfer. We understand the law and have the experience necessary to do this. Sometimes lenders who have nothing to gain from a mortgage transfer will try to complicate the process and to frustrate you – we will not relent until the transfer is through if we feel your current terms allow for it.
You particularly need us if your credit score is worse than it was when you got the original mortgage. If your financial situation has deteriorated due to bad debt, most lenders will reject the mortgage transfer proposal. We will negotiate with the lender on your behalf and convince them, with the necessary proof, that you are still able to make your monthly repayments.