Is it free to switch mortgage lenders at renewal?

In most cases, yes. When your mortgage term matures, you can transfer to a new lender with little or no out-of-pocket cost. The new lender typically covers the legal and appraisal fees as an incentive to win your business. The exception is if your mortgage has features that complicate the transfer, like a collateral charge registration, a home equity line of credit (HELOC) component, or if you want to increase the mortgage amount (which is treated as a refinance, not a switch).

How long does it take to switch mortgage lenders?

Plan for 30–45 days from application to closing. The timeline includes getting approved by the new lender (1–2 weeks), ordering an appraisal if required (1–2 weeks), and having a lawyer handle the discharge and registration (1–2 weeks). Start shopping at least 90–120 days before your maturity date to give yourself enough time.

Can you switch from a variable to a fixed mortgage when changing lenders?

Yes. When your term matures, you are free to choose any rate type, term length, and amortization with your new lender. Switching at renewal is the one time you can completely restructure your mortgage without penalty — as long as you are not changing the mortgage amount.

What is a collateral charge and how does it affect switching?

A collateral charge (used by TD, Tangerine, and some other lenders) registers the mortgage for more than you actually owe — often up to 125% of the property value. When you want to switch lenders at renewal, a collateral charge requires a full discharge and re-registration rather than a simple transfer assignment, which means lawyer fees of $800–$1,500 that the new lender may or may not cover. Ask your current lender whether your mortgage is registered as a standard charge or a collateral charge.

How to Switch Mortgage Lenders in Canada at Renewal

Switching mortgage lenders at renewal is one of the simplest ways to save thousands of dollars — yet most Canadians sign their renewal letter without shopping around. At maturity, you owe no penalty and the new lender typically covers the transfer costs.

When does switching make sense?

Scenario	Potential Savings
New lender offers 0.20%+ lower rate on same term	$3,000–$12,000 over 5 years (depending on balance)
Current lender won’t match competing offers	Any rate gap costs you real money every month
You want features your lender doesn’t offer	Prepayment flexibility, portability, cash-back
Your current lender is hard to deal with	Service quality matters for 5+ year relationships
You want to switch from a monoline to a bank (or vice versa)	Access to different products, service models

When switching may not be worth it

Scenario	Why
Rate difference is under 0.05%	Savings are minimal; stay for convenience
You have a collateral charge mortgage	Discharge + re-registration costs $800–$1,500 if the new lender won’t cover it
You want to increase the mortgage amount	This is a refinance, not a switch — different process, potential penalties
You have a HELOC bundled with the mortgage	HELOC portion must be paid off or restructured separately
You are within months of paying off the mortgage entirely	Switching costs and effort outweigh the tiny savings

Switch vs. refinance vs. renewal: what’s the difference?

	Renewal (Stay)	Switch (Transfer)	Refinance
What changes	Rate, term	Rate, term, lender	Rate, term, lender, mortgage amount
Penalty	None (at maturity)	None (at maturity)	Prepayment penalty if mid-term
Appraisal	Rarely	Sometimes (lender-dependent)	Almost always
Legal fees	None	Usually covered by new lender	$800–$1,500 (sometimes covered)
Credit check	No (same lender)	Yes (full qualification)	Yes (full qualification)
Can increase mortgage?	No	No	Yes
Best for	Rate is competitive, no reason to move	Better rate available elsewhere	Need additional funds

Step-by-step process to switch lenders

Step 1: Start shopping 90–120 days before maturity

Your current lender must send a renewal offer at least 21 days before your maturity date. Do not wait for that letter. Start getting quotes from other lenders and brokers 3–4 months out.

Step 2: Gather your information

Document	Why It’s Needed
Current mortgage statement	Shows balance, maturity date, terms
Property tax assessment	Confirms property value
Proof of income (T4, pay stubs, NOA)	New lender must qualify you
Government ID	Standard verification
Property insurance details	Proof of coverage
Current lender’s charge type	Standard vs. collateral — call your lender to confirm

Step 3: Get competing quotes

Get at least 3 quotes: one from your current lender (their best negotiated rate), one from a mortgage broker (accessing monoline lenders), and one from another bank or online lender.

Step 4: Apply with the new lender

Once you have chosen the best offer, submit a full mortgage application. The new lender will:

Run a credit check
Verify your income and employment
Order an appraisal (if required — many lenders use automated valuations for switches)
Issue a commitment letter with all terms

Step 5: Accept the commitment and sign documents

Review the terms carefully. A lawyer or notary will handle the transfer documentation. This includes:

Discharging the old mortgage registration
Registering the new mortgage on title
Transferring funds to pay off the old lender on the exact maturity date

Step 6: Closing day

On your maturity date, the old mortgage is paid off with funds from the new lender. Your first payment to the new lender starts according to the new schedule. There should be no gap in coverage or double payments.

The collateral charge problem

Some lenders — notably TD and Tangerine — register mortgages as collateral charges rather than standard (conventional) charges. This affects switching:

Charge Type	What It Means for Switching
Standard charge	Simple transfer assignment. New lender’s lawyer handles paperwork. Typically free.
Collateral charge	Full discharge required. New registration needed. Legal fees $800–$1,500. New lender may or may not cover these.

How to find out: Call your current lender and ask: “Is my mortgage registered as a standard charge or a collateral charge?” You can also check your original mortgage documents or search the provincial land title registry.

If you have a collateral charge: Factor the discharge/registration cost into your savings calculation. If the new lender’s rate saves $8,000 over 5 years but switching costs $1,200, you still save $6,800.

Timeline for switching

Timing	Action
120+ days before maturity	Start researching rates and options
90–120 days before	Get competing quotes, negotiate with current lender
60–90 days before	Choose new lender, submit application
45–60 days before	Approval, appraisal (if needed), commitment letter
30–45 days before	Sign documents with lawyer
Maturity date	Transfer completes, first payment to new lender begins

Common concerns about switching

“Won’t it hurt my credit score?” A single mortgage application causes a minor, temporary dip (5–10 points). It recovers within a few months. The rate savings far outweigh this.

“Is the process complicated?” The new lender and the lawyer handle the mechanics. Your involvement is submitting documents and signing papers — similar to the original mortgage process but simpler because you already own the property.

“What if my property value has dropped?” The new lender may require an appraisal. If the value has dropped significantly, your loan-to-value ratio may be higher than expected, potentially affecting the rate offered. In rare cases, you may not qualify for the switch if LTV exceeds 80% without CMHC insurance.

“Can my current lender penalize me for not renewing?” No. At maturity, you owe nothing extra. The right to switch is built into every Canadian mortgage contract.