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What's the process to switch, refinance or renew a mortgage with Perch?
What's the process to switch, refinance or renew a mortgage with Perch?

Perch make exploring your financing options and finding the right mortgage for you quick and easy.

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Written by Support
Updated over a week ago

The motivation to switch, renew or refinance an existing mortgage are all quite unique but the process with Perch looks quite similar. Here we will discuss just how easy it is to switch, renew or refinance your existing mortgage with Perch.

Option 1 (Quick): Start a Plan from Your Dashboard

You can instantly start a plan to switch, refinance or renew your mortgage by simply visiting your Perch Dashboard and clicking on the type of plan you'd like to start.

Select Renew / Switch to renew an existing mortgage or switching that existing mortgage to a new lender.
If you want to access some or all of the equity in your property or change your mortgage amount, you should select Refinance.

Option 2 (More Details): Add your Property to Perch

Regardless of whether you're looking to switch, renew or refinance an existing mortgage, the first step will be to add your property to Perch. We need information about the property and any outstanding mortgages to be able to determine key information like the benefit or cost to switch your mortgage, the amount of available equity in the property and the term end date for any outstanding loans.

Start a Plan to Renew, Refinance or Switch

Once you've added your property and mortgage(s) to your Perch account you'll be able to view your property details page. In this page you will see some key information related to your ability to switch, renew or refinance your existing mortgage(s).

1. Switching

If you're looking to switch your mortgage, Perch automatically calculates something called your switch savings opportunity. This is the amount of money you could save (or lose) for switching your mortgage.

In the event your switch benefit is positive, it means Perch anticipates that switching your your current mortgage for a new one would yield savings on your monthly mortgage payments (this number accommodates any possible penalties for switching).

In the event there is zero or negative switch benefit, then it is likely that the penalties (including any interest left on this mortgage) would outweigh the possible savings.
Clicking on "Switch Now" will start a switching plan and notify your advisor that you are interested in determining if you could benefit from switching your existing mortgage with Perch.

2. Refinancing

Refinancing a mortgage is the process of replacing your current mortgage with a new one, typically to change the loan term, or tap into home equity. It involves re-evaluating your credit and financial situation, and it may lead to lower monthly payments or other financial benefits.

We've written an entire article dedicated to the different ways you can access the equity in your property that we highly recommend checking out if you're considering refinancing.

If you're interested in refinancing to access the equity in your property, you can simply click on the "access equity" button in your property details page to start a refinancing plan. If you're interested in changing your mortgage term, adjust your payments, applying for an interest only loan, etc. we recommend reaching out to your advisor to discuss your options. Simply click the chat icon in the bottom left hand corner of your screen to open a new conversation.

πŸ’‘ Please note that not all properties will have available equity. This is typically because the mortgage balance has not been paid down enough to access the equity in the property.

3. Renewing

You'll never have to worry about forgetting your mortgage renewal when you track your property and mortgage with Perch. We send reminder emails at 120, 90, 60 and 30 days leading up to your renewal.

πŸ’‘ Did you know that you can actually lock a rate in for a renewal as early as 120 days before your mortgage's maturity date!

As soon as your mortgage enters this 120 day renewal window, you'll see the option, in your property details page, to renew your existing mortgage.

Simply click renew now to start a plan to renew this mortgage.

Complete You Profile

Next you'll be encouraged to complete your perch Profile. You'll provide things like your date of birth, current home ownership status, financial and living situation, etc. These items will enable our team of advisors to determine your pre-approval amount.

πŸ’‘ To begin a pre-approval, your Perch advisor will need your last 3 years of employment and residence history. This information is used to determine your pre-approved maximum purchase price.

Sign your Consent Agreement

To apply for a mortgage, all lenders will require a credit check. By signing your credit check consent you are giving your Perch advisor consent pull your credit report which they will use to complete your pre-approval and any subsequent mortgage application.

πŸ’‘ Did you know multiple checks within 45 days of each other are treated as part of the same single instance, and will not impact your credit score.

Upload any Required Documents

As you add details to your profile, you'll notice that Perch will start asking you to upload certain documents to your profile. For example, if you entered a salaried employment role, the system might ask your for your T4 issued to you from your employer. These documents are a requirement and provide our advisors with the ability to validate your profile details with our lenders.

You'll see a yellow badge beside the link to the documents center in your sidebar anytime there are outstanding documents you need to upload.

While Perch works on your schedule, the sooner you are able to complete your profile and upload all of your required documents, the sooner your advisor will be able to provide your with your pre-approval.

Perch automatically notifies your advisor when your profile is complete so that they can begin working on your pre-approval.

Work with Your Advisor to Finalize Details

At this point, your advisor may get in touch with you to finalize your needs. They might work to determine the amount of equity you want to access (refinancing only), the term of your desired mortgage, request additional documentation, etc.

πŸ’‘ All requested documents will be visible in your documents center where you can easily review and upload them.

Review and Accept your Mortgage Offer

After working with your advisor, they will work to prepare your mortgage offer; taking into consideration all of your wants and needs. You'll be notified via email when your mortgage offer is ready for review.

The turn around for mortgages offers are very quick and you can usually expect the offer the same day you upload your property details.

At this point you can work with your advisor to make any adjustments to your offer (if needed) or you can choose to accept the offer. Once accepted Perch will submit your mortgage application to the lender and provide the lender with answers to any of their questions on your behalf.

Add your Payment Details

After accepting the offer, you'll need to provide perch with details on how you'd like to pay your mortgage payments (weekly, bi-weekly, monthly, etc.) and from which bank account the funds will be withdrawn. You can do this by completing your payment details right from the plan page.

Await Lender Approval

When we hear back from the lender you will be notified via email to log into your account and sign your compliance documents. Sometimes the lender may require additional details, but typically your application will be lender approved at this point.

Sign your Compliance Documents

Now that your application is Lender Approved, you will be asked to sign a set of compliance documents. The number of compliance documents is based on where you live and the type of mortgage for which you have applied. In general however, there are only 3-4 documents requiring your signature and the great news is they can all be signed digitally through your Perch account.

Sign your Commitment Letter

This is the last major milestone in your mortgage journey. Once your compliance documents are signed, the last step will be to await your commitment letter from the lender. You will receive a notification via email to sign the document via Docusign.

Once signed, your mortgage application is complete and Perch will work with your lender(s) behind the sense to complete the transaction and your plan journey will be complete. At this point you can sit back and relax.
Depending on how far out your financing date is, your plan may stay in a pending state until the financing date is reached and your plan is funded. You need not worry as Perch will take care of everything for you and keep you informed if anything changes. Of course you can reach out to your advisor at anytime should you have any other questions.

Congratulations, You've Made the Right Move! 🏠

With Perch, the process of switching, refinancing, or renewing a mortgage has never been simpler. Our intuitive plan flow, combined with expert advice, ensures that you always make the right decisions for your next mortgage. Whether you're aiming for a better rate, different terms, or simply renewing, Perch has you covered!

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