Mortgage Switch Offers:
Should You Take It?
Lenders use cashback, rate discounts, and incentives to attract your business at renewal. Some are genuine savings. Others are traps. Here's how to tell the difference.
Types of Switch Offers
Not all incentives are equal. Here's what each type typically means — and when it's worth taking.
Cashback Incentive
SometimesWhy It Can Be Good
- Immediate cash — useful for moving costs, legal fees
- Can offset cost of switching lenders
Watch Out For
- Typically paired with a higher interest rate (+0.2–0.4%)
- On a $400K mortgage, $2K cashback vs 0.25% rate difference: rate wins over 5 years
- May have clawback if you break the mortgage early
Verdict: Calculate the rate cost over your full term. Cashback looks attractive but usually costs more in interest than the cash received.
Rate Discount Offer
Usually YesWhy It Can Be Good
- Direct rate reduction — the simplest, cleanest saving
- No conditions attached if it's a genuine market rate
Watch Out For
- Confirm it's the actual rate (not a teaser rate with hidden conditions)
- Compare against what a broker can source from other lenders
Verdict: A genuine rate discount is real money. Confirm the effective rate is competitive against the full market — not just your current lender's posted rate.
Balance Transfer / Port Offer
DependsWhy It Can Be Good
- Avoid penalty if moving your mortgage to a new property
- Maintain your current rate in a rising rate environment
Watch Out For
- May come with restrictions on new rate blending
- Check if portability is actually exercisable in your timeline
Verdict: Valuable if you're selling and buying simultaneously. Confirm the timeline and blending terms before committing.
The Honest Test for Any Switch Offer
Compare the total cost of the switch offer against the best rate available from a broker across 50+ lenders. If the switch offer beats the broker rate in total cost over your full term — take it. If not, the switch offer is marketing, not savings. Deane can run this comparison in minutes.
Review Your Switch Offer
Send Deane the details of the offer you received. He'll tell you if it's worth taking or if he can beat it.
Schedule Your Free Consultation with Deane
Takes 2 minutes. Deane will respond within 24 hours with personalized options.
Don't Guess — Let Deane Analyze Your Switch Offer
He'll compare it against 50+ lenders in minutes and tell you if you're getting a real deal.