Switching mortgage lenders at renewal
When your term ends you can move your mortgage to another lender with no prepayment penalty. Your lender must send a renewal statement at least 21 days before the term ends (FCAC, federally regulated lenders). Since November 21, 2024, an uninsured mortgage moved as a straight switch, with the same amount and amortization, doesn't have to pass the stress test (OSFI). Costs are mainly a discharge fee and sometimes an appraisal; new lenders often pay legal fees.
Timeline
- Four to six months before maturity: start comparing rates. Many lenders will hold a rate for a few months on a switch.
- At least 21 days before: your renewal statement arrives (federally regulated lenders, FCAC). Don't let it auto-renew if you plan to move.
- Maturity date: the new lender pays out the old one; no prepayment penalty applies.
No stress test on a straight switch
OSFI's November 21, 2024 change exempts uninsured straight switches from the minimum qualifying rate. The conditions: a transfer between federally regulated lenders, no increase in the amortization or the amount (other than up to $3,000 for costs), and a stand-alone amortizing mortgage, not a readvanceable one. Add cash or stretch the amortization and it's a refinance, which must qualify at 6.58% or more today.
What switching costs
FCAC lists setup fees with the new lender, which may include discharge, registration, transfer or assignment fees, and an appraisal if one is needed, and suggests asking the new lender to pay some or all of them. Our estimates: discharge $350, appraisal $450.
Is it worth it?
Usually, if the rate gap is more than a few hundredths of a point. On $380,000 over five years, a 0.30-point lower rate saves about $4,547 after $800 of costs. Test yours with the switch calculator.
Frequently asked questions
What is a straight switch?
Moving an existing uninsured mortgage from one federally regulated lender to another with no increase in the amortization or the loan amount, except up to $3,000 for penalties or fees (OSFI). Equity take-out isn't allowed.
Can my lender refuse to renew my mortgage?
It can, but a federally regulated lender must give you at least 21 days' notice before the term ends (FCAC).
Primary sources
- Financial Consumer Agency of Canada — Renewing your mortgage (21-day renewal statement; switching costs) (effective October 15, 2025). Checked .
- OSFI — Uninsured straight switches exempt from the minimum qualifying rate (effective November 21, 2024). Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (contract + 2 points or 5.25%) (effective January 29, 2026). Checked .