What fees to expect when switching Mortgage providers?

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Dec 23rd, 2020 11:11 pm

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Dec 23rd, 2020 10:31 am

jumanji69 [OP]: Newbie; Dec 7, 2007; 38 posts; 32 upvotes

Dec 23rd, 2020 10:31 am

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.

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Dec 23rd, 2020 10:34 am

lolbeast: Deal Addict; Apr 29, 2010; 1172 posts; 2274 upvotes; GTA

Dec 23rd, 2020 10:34 am

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.

Dec 23rd, 2020 10:42 am

jumanji69 [OP]: Newbie; Dec 7, 2007; 38 posts; 32 upvotes

Dec 23rd, 2020 10:42 am

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)

Dec 23rd, 2020 4:13 pm

CdnRealEstateGuy: Deal Fanatic; Feb 2, 2014; 9898 posts; 2790 upvotes; Toronto

Dec 23rd, 2020 4:13 pm

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

+1

Dec 23rd, 2020 11:11 pm

jarfgames: Deal Addict; Nov 10, 2012; 2651 posts; 1921 upvotes; Calgary

Dec 23rd, 2020 11:11 pm

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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