A large wave of Canadian mortgages signed during the low rate years is renewing now. Most homeowners open the renewal letter, sign it, and mail it back. That single signature is one of the most expensive habits in Canadian personal finance.
Your current lender knows you are unlikely to move. Their renewal offer reflects that. A different lender wants your business and prices accordingly. The question people ask most often is simple. Can I switch my home loan to another bank without starting over? In most cases yes, and it is easier now than it has been in years.
The Rule Change That Made Switching Simple
In November 2024, OSFI removed the stress test on straight switches. If you move an uninsured mortgage to a new federally regulated lender at renewal without increasing the balance or extending the amortization, you no longer have to requalify at the higher rate.
That opened the door for homeowners whose income changed since they first bought.
Transfer, Switch, or Refinance and Why the Word Matters
A Transfer or Switch
Same balance, same or shorter amortization, new lender. Cheap, fast, and often covered by the new lender.
A Refinance
You are borrowing more, pulling out equity, or stretching the amortization. The full stress test applies, a new appraisal is usually required, and legal costs are higher. If that is your goal, our page on refinancing your house in Ottawa walks through when it makes sense.
Knowing which one you need before you apply saves both time and money.
The Step by Step Transfer Process
Step One, Start Roughly 120 Days Before Renewal
Most lenders will hold a rate for you 90 to 120 days out. Starting early costs nothing and protects you if pricing rises.
Step Two, Compare Real Offers
Your mortgage broker collects competing offers, including the rate, the penalty formula, prepayment privileges, and whether the new lender covers your transfer costs.
Step Three, Submit the Application
You provide income documents, a recent mortgage statement, and property tax details. Expect a credit check. The new lender may order an appraisal, though many waive it on straightforward transfers.
Step Four, Approval and Legal Work
Once approved, the new lender instructs a lawyer or a title services company. They discharge the old mortgage and register the new one. You sign documents, usually in under an hour.
Step Five, Funding on Your Maturity Date
The new lender pays out the old balance on your renewal date. Your payment amount, payment date, and account details change. Everything else about your home stays exactly the same.
What a Mortgage Loan Transfer Actually Costs
- Discharge fee from your current lender, typically $250 to $400 in Ontario
- Legal and registration costs, often $500 to $1,100
- Appraisal if required, generally $300 to $500
Here is the part most homeowners miss. Many lenders cover these costs to win your business, either through a cash rebate or by absorbing the legal fees. On a competitive file the switch can cost you nothing out of pocket.
If you break your term early rather than waiting for maturity, a prepayment penalty applies. On a fixed mortgage that can be significant, so the savings must clearly outweigh it. Our transfer your mortgage page explains how we run that comparison.
When Switching Lenders Is Not the Right Move
Staying put can make sense if you are mid term with a large penalty, if your income has dropped and you would fail a fresh review, if you hold a collateral charge that is expensive to move, or if you plan to sell within a year. A good broker will tell you when to stay. That advice is worth as much as the switch itself.
Collateral Charge Mortgages
Some lenders register your mortgage as a collateral charge, which can make transferring more costly because it must be discharged and re registered. Ask your current lender what type of charge you have before you assume the move is free.
How Long the Whole Thing Takes
Two to four weeks for most files. Start early, gather documents quickly, and the process rarely creates stress. Missing your maturity date is the main risk, because your lender may roll you into a higher posted rate.
Frequently Asked Questions
Can I transfer my mortgage without a new credit check?
No. The new lender will review your credit even on a straight switch. The difference is that the stress test does not apply if the balance and amortization stay the same.
Will I pay a penalty to switch at renewal?
Not if you move on your maturity date. Penalties only apply when you break a term early. Bank Street Mortgage compares the penalty against the savings before recommending anything.
Does switching lenders hurt my credit score?
One application creates one inquiry, which has a small and temporary effect. Applying to many lenders on your own does more damage than working through a single broker.
Can I increase my mortgage during a transfer?
Yes, but then it becomes a refinance rather than a switch, so the stress test and full qualification apply.
Do I need a lawyer to transfer my mortgage?
Usually a title services company handles it rather than a full legal file, which keeps costs lower. Your new lender arranges this.
Is it worth switching for a small rate difference?
On a $500,000 balance, a quarter point saves roughly $65 a month. Over five years that is nearly $4,000, so the answer is often yes once costs are covered.
Your Renewal Letter Is an Offer, Not an Instruction
Signing the first number your bank sends is the easiest money most Ottawa homeowners give away. A transfer takes a few weeks, usually costs little or nothing, and can lower your payment for the next five years. The rules changed in your favour, lenders are competing hard for renewal business, and your only job is to compare before you sign. Give yourself a few months of runway and let someone shop the market for you.
Have a renewal date coming up? Send us your details and Bank Street Mortgage will show you what other lenders would offer, or start the transfer here.