About to renew mortgage, recently broke with my ex, brokers say different things, help!

Voltz23 wrote: ↑ Hello everyone,

here is a quick summary of my situation :

me and my ex broke a few months ago
we are in good terms and I decided to keep the house
both our names are on the mortgage
the mortgage will be renewed on april 2020

My bank (RBC at 2.99%) told me I should go to the notary at least 1 month before the renewal to ensure the whole process goes on without issues
The best rate I got so far (True North Mortgage at 2.69%) says it's pointless to go to the notary right now and it would be best to remove her name from the mortgage at the same time I renew with them

What sounds right? I'm confused and wonder why the recommendations I get are different. What is the right decision?

Also, I get higher rates from brokers in Quebec while I see lower rates from brokers in Ontario (that say they can do my mortgage). Should I consider brokers from outside my province?

Voltz23 wrote: ↑ Hello everyone,

here is a quick summary of my situation :

me and my ex broke a few months ago
we are in good terms and I decided to keep the house
both our names are on the mortgage
the mortgage will be renewed on april 2020

My bank (RBC at 2.99%) told me I should go to the notary at least 1 month before the renewal to ensure the whole process goes on without issues
The best rate I got so far (True North Mortgage at 2.69%) says it's pointless to go to the notary right now and it would be best to remove her name from the mortgage at the same time I renew with them

What sounds right? I'm confused and wonder why the recommendations I get are different. What is the right decision?

Also, I get higher rates from brokers in Quebec while I see lower rates from brokers in Ontario (that say they can do my mortgage). Should I consider brokers from outside my province?

Voltz23 wrote: ↑ I mean ex-girlfriend,
I simply want to take her off title and I don't need an money (we already settled everything related to money together).

rob444 wrote: ↑ if you are intending to get a new mortgage and a new lender, this is NOT a renewal. .

GalvToronto wrote: ↑ Noob question...What is the real reason behind the fact that sites like RateHub are clearly separating rates on 3 categories?
1)New purchase
2)Renewal
3)Refinance

I mean, if renewal is only possible with current lender on the same conditions...why do they even bother to post such rate on RateHub? If you can't call their brokers and ask "give me that rate".

GalvToronto wrote: ↑ Noob question...What is the real reason behind the fact that sites like RateHub are clearly separating rates on 3 categories?
1)New purchase
2)Renewal
3)Refinance

I mean, if renewal is only possible with current lender on the same conditions...why do they even bother to post such rate on RateHub? If you can't call their brokers and ask "give me that rate".

Voltz23 wrote: ↑ I mean ex-girlfriend,
I simply want to take her off title and I don't need an money (we already settled everything related to money together).

rob444 wrote: ↑ The reason you are getting 2 different answers is because you are asking 2 different things.

"Renewing" means you are sticking with your same lender under the same conditions as your current mortgage. So for this it would be recommended to start the process to remove her from title early, so you can "renew" with the same lender when it comes due. Your current lender would advise you in this case what specific steps to follow to remove her from title and mortgage in time for renewal.

if you are intending to get a new mortgage and a new lender, this is NOT a renewal. You would be discharging your current mortgage, and opening up an entirely brand new one. For this situation what you were told sounds right, that the title/mortgage will be sorted out when you start the application. Of course in order to have the new mortgage set up in time before your current one ends, you should start the application process in plenty of time (say 1 month) before your current term end date.

GalvToronto wrote: ↑ Noob question...What is the real reason behind the fact that sites like RateHub are clearly separating rates on 3 categories?
1)New purchase
2)Renewal
3)Refinance

I mean, if renewal is only possible with current lender on the same conditions...why do they even bother to post such rate on RateHub? If you can't call their brokers and ask "give me that rate".

CdnRealEstateGuy wrote: ↑ 1-Pretty straight forward, it's when you are buying a property and a new lien is setup for the mortgage.
2-Renewal (aka transfer/switch). This is when you are keeping terms the same or lower (ie balance and amortization period) and want to switch lenders. If you want to stay with the same lender, it defeats the purpose of ratehub or brokers, as we cannot assist you if you're sticking with your current lender.
3-Refinance is when you're changing terms of the lien (ie increasing the mortgage balance or amortization or changing names on title like OP). Typically people refinance because they want to take more money out of the property (ie increasing the mortgage owing).

Regardless if you break mid-term or not, it's still a renewal/transfer/switch as long as you're not changing the terms of the lien.

GalvToronto wrote: ↑ The difference between Ratehub Refinance and Renew rates is 0.35%-0.4%.
For let's say 800k mortgage, it become a staggering $16k over 5 years.

If a borrower just wants let's say make 22years long mortgages back to 30years long and decrease the pace he pays off his principal. What is the justification to pay such a staggering penalty $16k? And it doesn't even include the penalty from current lender for early switching. It diminishes the whole purpose.

CdnRealEstateGuy wrote: ↑ This isn't quite accurate. When you switch lenders, you are NOT necessarily getting a new mortgage and discharging the old lien (this is more in line with a refinance). For a transfer, the old lien remains in place. As a result, you cannot borrow more money or extend the amortization. The lien isn't discharged, terms remain as-is, just the mortgage holder changes.

sidshock wrote: ↑ If you're on good terms now run to get her name removed.

rob444 wrote: ↑ Thanks for the clarification.
Can you do this with a collateral mortgage product as well?