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Switching Your Mortgage

Thinking about making a switch? Well, if your mortgage is up for renewal and you're ready to look at your options, think about an unmortgage from ING DIRECT. We take a different approach. If you transfer your mortgage to ING DIRECT, you will always get our best rate, now and upon renewal. So you don't need to shop around for a better rate. Better yet, an ING DIRECT unmortgage offers true flexibility so you can own your home sooner. And isn't that the point? We're all about saving you money.

Aside from the great interest rate, there are additional things to consider when making your decision to transfer your mortgage.

Timeline: Depending on whether lawyers need to be involved or not, a minimum of 3 weeks is recommended to complete a transfer of your current mortgage.

You can apply anytime, however, we'll guarantee our lowest fixed rate provided for the term you have selected for up to 120 days prior to your current mortgage's renewal date provided your completed application is approved.
Current Mortgage Details: Have your most recent mortgage statement available.
Applicable fees, charges and penalties.
1. Transfer Fee - ING DIRECT does not charge any fees for transferring your mortgage from your current provider. Your current mortgage provider may charge you a a fee to transfer your mortgage.
2. Legal Fees - At ING DIRECT, we pay any legal fees to transfer your existing mortgage from your current mortgage provider to ING DIRECT.
3. Interest Penalties - If your mortgage is renewing, there are no interest penalties to be incurred. However, should you be transferring your mortgage prior to your renewal date to benefit from ING DIRECT's low rates, interest penalties could apply. Before transferring, we recommend you contact your current mortgage provider to find out if any penalties for transferring will apply in your situation and exactly how much the penalties are. Interest penalties can take the form of either 3 months interest penalty or the interest rate differential. After you have confirmed these details and if interest penalties apply, ING DIRECT can help outline how these costs can be recouped through interest savings over the new term of your mortgage.
Pay off your mortgage faster:

You can pay off your mortgage faster by changing your current mortgage payment frequency (from monthly to accelerated bi-weekly for example) or taking advantage of some of the pre-payment privileges available.

See how a change to your current mortgage payments can benefit you in the long run:

Example A: Change in Payment Frequency

By simply changing your payment frequency from monthly to accelerated bi-weekly, you can start saving money from day one. Over the full amortization period (i.e. 25 years), you will save $32,298.61 in interest and result the amount of time to pay off your mortgage by a little over 3 years.

MONTHLY

YEAR	Total Payments	Total Interest Paid	Principal	Balance Owing (at end of year)
1	$15,341.03	$11,736.47	$3604.56	$196,395.44
2	$15,341.03	$11,517.33	$3823.70	$192,571.74
3	$15,341.05	$10,284.86	$4056.19	$188,515.55
4	$15,341.05	$10,038.25	$4302.80	$184,212.75
5	$15,341.06	$10,776.66	$4564.40	$179,448.35
Totals	$383,526.00	$183,526.00	$200,000.00	$0

ACCELERATED BI-WEEKLY

YEAR	Total Payments	Total Interest Paid	Principal	Balance Owing (at end of year)
1	$16,619.44	$11,618,59	$4,940.85	$195,059.15
2	$16,619.48	$11,378,20	$5,241.28	$189,817.871
3	$16,619.47	$11,059,54	$5,559.93	$184,257.94
4	$16,619.48	$10,721,52	$5,897.96	$178,359.98
5	$16,619.47	$10,362.94	$6,256.63	$172,103.45
Totals	$349,606.06	$149,606.06	$200,000.00	$0

All calculations are based on a $200,000 mortgage, amortized over 25 years using ING DIRECT's five year fixed rate of 5.99%. Assumes no change in rate.

Example B: Making an annual Lump Sum Payment

Can you afford saving $3.33 per day or $100 per month? It could cut almost 3 years off your mortgage and save $29,735^†† in interest (based on monthly payments through the life of the mortgage). Save an additional $24,029^†† in interest by paying your mortgage on an accelerated bi-weekly basis. Here's how:

MONTHLY

YEAR	Total Payments	Total Interest Paid	Principal	Balance Owing (at end of year)
1	$15,341.03	$11,736.47	$3,604.56	$196,395.44
2	$16,541.05	$11,450.62	$5,090.43	$191,305.01
3	$16,541.04	$11,141.13	$5,399.91	$185,905.10
4	$16,541.05	$10,812.83	$5,728.22	$180,176.88
5	$16,541.05	$10,464.58	$6,076.41	$174,100.41
Totals	$353,791.10	$53,791.10	$200,000.00	$0

ACCELERATED BI-WEEKLY

YEAR	Total Payments	Total Interest Paid	Principal	Balance Owing (at end of year)
1	$16,619.44	$11,678.59	$4,940.85	$195,059.15
2	$17,819.46	$11,308.13	$6,511.33	$188,547.82
3	$17,819.46	$10,912.26	$6,907.20	$181,640.62
4	$17,819.44	$10,492.32	$7,327.12	$174,313.50
5	$17,819.46	$10,046.85	$7,772.61	$166,540.89
Totals	$329,761.28	$129,761.28	$200,000.00	$0

All calculations are based on a $200,000 mortgage, amortized over 25 years using ING DIRECT's five year fixed rate of 5.99% and an annual lump sum payment of $1200 ($100 per month deposited into a savings account). Assumes no change in rate.

^†† The savings indicated is based on the difference between a $200,000 mortgage amortized over 25 years using ING DIRECT's five year fixed rate of 5.99% with no lump sum payment and one with a $1200 annual lump sum payment.

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