What mortgage types are there to choose from?
There are many mortgage options you can select:
- Closed
- Fixed
- Open
- Variable
Typically, a mortgage has a maturity date or term length of five years. So, every five years, you can renew your mortgage as the same type or choose something different depending on your needs.
If you switch your mortgage type when your mortgage is up for renewal, there are no additional fees.
How Does Switching Mortgages Work?
The process of switching a mortgage in Canada doesn’t mean changing your lender, but rather choosing a different loan type within the same institution. If you are thinking about switching mortgage types at Innovation, our experts are here to help.
Please note that there might be fees involved, so it's best to switch your existing mortgage at the end of its maturity date. The good news is, you can always swap a variable rate mortgage for a fixed rate mortgage at any time without paying any fees.
Can I Switch My Home Loan Type Before the Maturity Date?
Switching mortgage types is best done on the maturity date of your existing loan, but what if you decide halfway through your term that you'd like to switch types?
For example, you may have an Open Variable Mortgage but if rates are steadily increasing, you might want to switch to a Closed Fixed loan where your rate remains constant. How do you make the switch? And what are the costs involved in doing so?
Contact us to discuss your options and potential costs so you can make the best decision for your needs, goals, and budget.
Benefits of Mortgage Switching
If you’re still re-evaluating your decision on whether to switch mortgage types or not, here are some potential benefits to help you manage the decision:
Switching mortgage types could lead to better interest rates
New loan offers might have emerged within your maturity date, offering better conditions
Since you’re already an Innovation mortgage holder, there is no home appraisal, proof of income, or proof of employment requirements since we already have this information
Special benefits could be available if you switch to a certain loan type
- Changing from a variable interest loan to a fixed interest mortgage has no fees
Want to Switch Your Mortgage?
Contact us to get started! We’re happy to explain more about transitioning to a different loan type that could be a better fit for your budget.