Below are the different types of Switch/Transfer finance programs:
Switch/Renewal - Pay No Fees (RNW)
The customer's existing first mortgage has matured and they are looking to switch to another financial institution without incurring any additional cost in doing so. It is assumed that the majority of charges (e.g., legal, appraisal, etc.) will be absorbed by the new lender. This usually does not include any discharge or administration fees levied by the previous lender in order to switch to the new lender. The existing registered mortgage documents are assigned to the receiving institution. Be sure to confirm with the receiving institution with respect to their documentation requirements as these may vary substantially from lender to lender.
Switch/Renewal - Pay Basic Fees (SWI)
Similar to the Switch/Renewal - Pay No Fees program, but the customer is prepared to absorb some basic fees (e.g., legal, appraisal, admin, etc.) at his/her own expense.
Switch/Early Renewal - Pay Penalties (SWP)
Customer wants to move mortgage to another lender prior to anticipated maturity date. This customer breaks the current mortgage contract with the lender despite the penalties, as it is in his or her best financial interest to do so based on calculations. Be sure to read the customer’s current mortgage documentation to determine the penalties for such.