How to switch a mortgage to another bank or lender
This piece was originally published on April 9, 2018 and updated on October 27, 2026.
Tips for renewing your mortgage in 2026:
- Start the renewal process early: Many lenders will allow you to renew your mortgage up to 120 days before the end of your term.
- Weigh your options: Comparing the market or working with a mortgage broker can help you secure the best mortgage renewal rate. Finding a mortgage rate even 0.25% lower can save you $66 per month, and $792 per year.*
- Make a lump sum payment: If possible, reduce your overall mortgage size before renewal by making a lump sum or accelerated monthly payment.
*Based on a $500,000 mortgage balance, 20 years remaining until amortization and a five-year fixed mortgage rate of 4.59% vs. 4.34%.
You wouldn’t blindly re-sign a cell phone plan without checking for a better deal, right? So why do so many Canadians do exactly that with their mortgage?
According to a 2026 Financial Consumer Agency of Canada survey, 20% of homeowners said they did not compare lenders when getting their current mortgage. When asked what would motivate them to switch lenders in the future, 12% of mortgage holders said nothing would.
That's a missed opportunity. Mortgage renewal is a prime time to consider whether a new lender is a better match for your current mortgage needs.
Helpful resources for your mortgage renewal:
- Compare current mortgage renewal rates
- Use our mortgage renewal calculator to estimate your new payments
- Speak to a mortgage broker for personalized renewal advice
Why mortgage renewal is a good time to switch lenders
There are generally three strong arguments for switching lenders at renewal:
- To secure a lower mortgage rate.
- To gain access to better terms and conditions, like more generous pre-payment privileges or less severe pre-payment penalties.
- To receive better customer service.
At renewal, you can switch lenders without incurring penalties. Your new lender simply pays off your remaining balance and takes over the loan, giving you a clean break. This contrasts mightily with a mid-term mortgage refinance, which can trigger steep pre-payment charges. Don't confuse the two processes, though: You're free to switch lenders at renewal.
You may need to pay administrative costs to complete the switch, but they'll generally be worth it if you can secure a lower rate or better terms. Your new lender might pay these administrative costs anyway.
This is one of the main reasons why homeowners are encouraged to start the renewal process early. Giving yourself a three- to four-month window allows you to compare other offers and complete the paperwork associated with switching without having to rush.
- Did you know: You don't have to renew with your lender? You can usually get a lower rate by switching at renewal. Your existing lender has less incentive to provide you with the most competitive rates, as they already have your mortgage business. Auto-renewing means leaving money on the table.
- You could save $13,857 on average by switching with Ratehub.ca vs renewing with your bank. Speak to a Ratehub.ca mortgage agent today to see how easy switching can be.
- Switching comes with cash bonuses of up to $4,000 - that could buy you a vacation!
- Get access to exclusive insurance discounts when you have a Ratehub.ca mortgage.
How to switch mortgage lenders at renewal
Switching mortgage lenders requires some work, but it can lead to better rates, more flexibility and long-term savings.
1. Start early (at least 3 months in advance)
Most lenders let you secure a new mortgage rate up to 120 days before your current term ends. Starting early gives you enough time to compare offers, complete paperwork, and avoid last-minute stress. It also protects you from potential rate increases, since many lenders will hold a rate for up to four months.
2. Reassess your mortgage needs
If your life has probably changed in the years since you took out your current mortgage. Your new mortgage should reflect these changes so it can support your present situation and any new plans or goals you have in mind.
Some changes to consider:
- A new mortgage rate type. Do you prefer the stability of a fixed rate or the flexibility of a variable rate?
- New pre-payment privileges. If you're earning a higher income, would you prefer to use more of it to pay down your mortgage principal?
- Term length. Maybe a 5-year term doesn't align with your near-term homeownership goals. There may be advantages to taking out a 2- or 3-year term instead.
3. Compare mortgage rates and lenders
Online comparison tools are a quick and easy way to get a sense of the best renewal rates available. But you may want to use a mortgage broker if you're considering a move from your current lender.
Brokers often work with lenders the general public can't access directly. Some of these lenders may offer more competitive rates. A broker can also negotiate on your behalf or suggest products and strategies for difficult renewal situations.
4. Decide if you want to access equity or get a HELOC
If you're planning a major renovation, paying off high-interest debt or need funds for another reason, renewal is the best time to tap into your home equity, as you’ll avoid any penalties from breaking your original mortgage contract.
At renewal, you can:
- Refinance to take out equity (receive a lump sum and repay through your mortgage)
- Add a HELOC, a revolving credit line tied to your home’s value
Both options require a real estate lawyer and updated paperwork, which your broker can help you with.
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What do you need to transfer your mortgage to another bank?
Once you’ve found the right mortgage, the process will look similar to when you first got your mortgage.
Documentation
Your new lender will ask for the following documents to assess your application, verify your financial situation, and finalize the offer.
- Government-issued photo ID
- Proof of income (e.g. recent pay stubs, T4s, or NOAs if you’re self-employed)
- A current mortgage statement
- Property tax statement
- Home insurance details
- Bank statements
Appraisal (sometimes)
Some lenders may require a new property appraisal to confirm the current market value of your home, especially if you’re refinancing to access equity. This typically costs a few hundred dollars, which you’ll need to cover upfront.
Discharge and legal fees
To formally switch lenders, your current mortgage needs to be discharged and a new one registered. This involves:
- A discharge fee from your current lender (usually $200–$400)
- Legal fees for handling the paperwork and registration (typically $700–$1,000)
Some lenders may offer to cover part or all of these costs as an incentive to win your business, especially if you're switching with a sizable mortgage balance. Be sure to ask about this when comparing offers.
A real estate lawyer
You’ll need to work with a lawyer to finalize the switch. They’ll coordinate with both lenders, register the new mortgage, discharge the old one, and ensure funds are transferred correctly on your renewal date.
When does it make sense to stay with your current lender?
- When the cost of switching outweighs the savings: If the rate you're offered by a new lender only saves you a small amount each month, it might not be worth it. For example, a $25/month saving adds up to $1,500 over five years, about the same as legal and discharge fees. If you pay for an appraisal or title insurance, you might actually come out behind.
- You need a fast or straightforward renewal: If you’re short on time or dealing with other priorities, accepting your lender’s offer might be the most convenient route. This option minimizes paperwork and skips the added steps of switching lenders.
- You’re bundling multiple products: If you have other financial products like a line of credit, chequing account, or investment account with your current lender, keeping your mortgage there might qualify you for package perks or easier account management.
If you do stay with your current lender, you should still negotiate your renewal rate. A lender's initial renewal offer will almost never be its best. Signing it for the sake of convenience could cost you thousands of dollars in unnecessary interest payments.
Helpful resources for your mortgage renewal:
- Compare current mortgage renewal rates
- Use our mortgage renewal calculator to estimate your new payments
- Speak to a mortgage broker for personalized renewal advice
Aditi Gupta, Content Specialist
Aditi Gupta is a content specialist at Ratehub, with a focus on creating informative content about mortgages.