On a collateral switch like yours, you will have to pay legal fees around $740.00 (based in SK) to change lenders. It will be very difficult to get a rate elsewhere low enough to justify those costs, given the low mortgage amount and very short time frame. A possible alternative could be a 5y variable, where the rates would drop considerably (compered to TD) and if you sell within 2y the penalty will be only 3 months interest.. if it does not sell in 2y, you continue the term normally. It is quite difficult to time a sale to match the maturity date of a mortgage.
braveblade wrote: ↑ Need help here.
My case: Currently have a collateral mortgage with TD for the townhouse located at Saskatoon, SK with 5 year fixed at 2.89%, which ends August 2018. Amount left is 210k. I may sell the house in 2 years (or not if the marketing is bad), so I want to go with 2-year term mortgage to give myself some flexibility. TD sent me a renewal offer of 2-year fixed at 3.31% , which is not that good. Could anyone let me know if there is any lenders can offer a better rate? And do I need to pay TD any fees if I choose another lender when my 5-year term ends with TD?
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