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My Mortgage Blog


Chances are if you got a variable rate mortgage from a big five Canadian Bank in the last couple of years you were offered a discount of 0.20% to 0.50% from Prime.  Since Prime is currently 3.45% (except at TD, whose Prime is 3.60%) you are likely paying something close to 3% on your existing variable rate mortgage. 

Until the end of May, you have the opportunity to have all your discharge, appraisal, and legal costs covered to refinance or transfer your mortgage to another “A” lender (Big Bank) offering variable rates as low as 2.35% (Prime minus 1.10%)

A “transfer” is when you switch lenders to get a better deal, but don’t increase your mortgage amount and/or amortization.  That loan may be switched to another lender regardless of the loan originally being a refinance, purchase or having an amortization greater than 25 years.

For example, if you have an existing $500,000 mortgage with a big bank at 3.10% variable rate today and transfer to a rate of 2.35%, you would save $3,750 (after tax) on each remaining year of your mortgage. 

via GIPHY

The only cost is the penalty calculation from your existing lender (3 months interest) which in this case works out to $3,750.  The bottom line is that if you have a variable rate mortgage with 1-5 years remaining on your term, you can save a lot of money by switching.   

Give me a shout and we can see if this strategy is right for you.

Kevin Bell

e. kevin@kevinbell.ca

p.  416-769-1440