Real Estate

What fees to expect when switching Mortgage providers?

  • Last Updated:
  • Dec 23rd, 2020 11:11 pm
[OP]
Newbie
Dec 7, 2007
38 posts
32 upvotes

What fees to expect when switching Mortgage providers?

I am currently with Meridian (my first mortgage( and looking to switch my mortgage provider to BMO or HSBC when my Meridian term expires on May 1st. From my understanding, I will need to pay Meridian a discharge fee of about $300. What fees should I expect to pay other than that? Will I need to pay my new lender any fees? (i.e. appraisal fee?, do I need to get a real estate lawyer again (last time the lawyer was over 1k)?

Any insight would be greatly appreciated!
Last edited by jumanji69 on Dec 23rd, 2020 10:44 am, edited 1 time in total.
4 replies
Temp. Banned
Apr 29, 2010
569 posts
932 upvotes
GTA
If you are on fixed rate , the main fee would be the IRD (interest rate differential) penalty.

For some this is like 10-50k depending on mortgage years left and principal outstanding.
[OP]
Newbie
Dec 7, 2007
38 posts
32 upvotes
Sorry I should have clarified (I'll edit my original post). I am not breaking my mortgage. The term is ending May 1st. My question is what fees can I expect to pay by switching to BMO or HSBC (i.e. appraisal fee, lawyer fee)
Deal Fanatic
User avatar
Feb 2, 2014
8778 posts
2514 upvotes
Toronto
jumanji69 wrote: I am currently with Meridian (my first mortgage( and looking to switch my mortgage provider to BMO or HSBC when my Meridian term expires on May 1st. From my understanding, I will need to pay Meridian a discharge fee of about $300. What fees should I expect to pay other than that? Will I need to pay my new lender any fees? (i.e. appraisal fee?, do I need to get a real estate lawyer again (last time the lawyer was over 1k)?

Any insight would be greatly appreciated!
Just the discharge fee.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Addict
Nov 10, 2012
2409 posts
1685 upvotes
Calgary
You can also potentially get the new bank to cover some/all legal and appraisal fees. There are also banks that offer cash bonuses for switching to them.

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