Switching lenders at renewal — a "transfer" or "switch" — moves your existing mortgage balance to a new lender without taking new money out. It is the single easiest way to cut your rate, and roughly seven in ten Canadians never do it because their current lender's renewal letter arrives first and looks convenient. Switch vs. renew vs. refinance Action Balance changes? New lender? Re-qualify? Typical cost Renew in place No No No $0 Switch / transfer No Yes Yes $0–$400 CAD (often covered) Refinance Yes (increase) Either Yes $1,100–$1,800 CAD Do you have to pass the stress test to switch? For an uninsured switch, yes: you qualify at the greater of 5.25% or your contract rate plus 2%. If your original mortgage was insured (you put less than 20% down) and the insurance still travels with the loan, most lenders will take the switch at the contract rate. Ask your broker to confirm the insurance status on your file before you shop — it changes which lenders can actually take you. What a switch costs in 2026 Discharge fee from your current lender: $0–$400 CAD depending on province and lender. Assignment / registration: usually $250–$350 CAD, and most lenders cover it on a straight switch. Appraisal: $300–$500 CAD, frequently waived or reimbursed on transfers. Collateral charge re-registration: if your mortgage is registered as a collateral charge, the switch has to be discharged and re-registered by a lawyer — budget $700–$1,000 CAD. This is the one that surprises people. Worked example Balance $480,000 CAD, 22 years remaining. Your lender's renewal offer is 4.79%; a switch lands you 4.34%. That 0.45% gap is roughly $118 CAD a month, about $7,080 CAD over a five-year term. Even with $1,000 CAD of collateral-charge legal costs, the switch is well ahead by month nine. Timeline 120 days out — request your renewal statement and confirm balance, maturity date, and charge type. 90 days out — hold a rate with a new lender; most holds run 90–120 days. 45 days out — submit income, property tax, and mortgage statement documents. 15 days out — sign; funds move on maturity day so you never pay a penalty. When staying put wins Stay if your current lender matches the market rate, if you are mid-term with a large penalty, if your income has changed and you would fail the stress test, or if your balance is small enough that the legal cost of a collateral discharge eats the savings. Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357 Frequently Asked Questions Do you have to pass the stress test to switch? For an uninsured switch, yes: you qualify at the greater of 5.25% or your contract rate plus 2%. If your original mortgage was insured (you put less than 20% down) and the insurance still travels with the loan, most lenders will take the switch at the contract rate. Ask your broker to confirm the insurance status on your file before you shop — it changes which lenders can actually take you.
