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Summary: Switching lenders at renewal moves your mortgage to a new lender for a better rate rather than signing your current lender's offer. A straight switch borrows no new money; registering the new lender's charge costs roughly $700 to $1,800 unless the new lender covers it.
Renewal is a decision point most people move past without much thought: the offer arrives, and it is easy to just sign it. Shopping around and switching lenders can save thousands over a term, and it is the point where a new charge gets registered on your property and, sometimes, a lawyer gets involved.
What does switching lenders at renewal mean?
At renewal your term ends, and you either sign a new term with your current lender or move the mortgage to a different one. Switching, also called a transfer, moves your existing balance to a new lender, usually to get a lower rate, without borrowing any additional money.
That last part is what separates a switch from a refinance, and it changes the paperwork, the cost, and whether you need a lawyer. Switching is also different from porting your mortgage, which carries your existing mortgage to a new home with the same lender.
Straight switch | Refinance | |
New money borrowed | No, the same balance moves | Yes, you increase the loan |
Amortization | Stays the same | Often re-set or extended |
Federal stress test | Not required for an uninsured switch (since November 2024) | Still required |
Typical reason | A lower rate at renewal | Access equity or consolidate debt |
When do you need a lawyer to switch?
You do not need a lawyer to renew with your current lender, because nothing new is registered on title. You may need one to switch to a new lender, and you almost always need one to refinance. Which case you fall into depends on how your mortgage is registered.
Ontario mortgages are registered as either a standard charge or a collateral charge, and the difference decides how much legal work a switch takes.
Standard charge | Collateral charge | |
Can it move to a new lender? | Yes, it can be transferred | No, it must be discharged and re-registered |
Legal work on a switch | Lighter, often handled by the new lender | Full discharge and a new registration |
Common examples | Most lenders | TD and Tangerine; some products at other lenders |
Either way, a lawyer or notary registers the new lender's charge and discharges the old one. On a standard-charge switch, many lenders arrange and pay for this through their own legal service or a title insurer, so you may never retain a lawyer yourself. On a collateral charge, or any refinance where you borrow more, the work is fuller and a real estate lawyer handles the discharge and registration. Our guide to real estate lawyer fees breaks down what that costs.
How does switching at renewal work, step by step?
Switching runs on your maturity date, but the work starts months earlier. The Financial Consumer Agency of Canada (FCAC) recommends comparing offers well before your renewal date, so you are not deciding under pressure the week your term ends.
Start about 120 days before your maturity date. Most lenders hold a rate for up to 120 days, so shopping early locks in a rate while you decide.
Compare your current lender's offer against others. The posted renewal rate is rarely the best available; a mortgage broker or another bank will often beat it.
Apply with the new lender. For a straight switch you provide income and property details. Since November 2024, the federal banking regulator no longer requires the stress test on an uninsured straight switch.
The old mortgage is discharged and the new one registered. A lawyer or notary handles the registration on title, and on a standard-charge switch the new lender often arranges and pays for it.
The switch completes on your maturity date. Funds move between lenders and your payments continue with the new lender, with no gap in coverage. The administrative process usually takes four to six weeks.
What does switching cost in Ontario?
Switching costs come from removing the old mortgage and registering the new one, plus an appraisal if the new lender asks for one. Paying everything yourself runs roughly $700 to $1,800, but many lenders cover the main fees to win your business.
Discharge fee: $200 to $400. Charged by your current lender to remove its mortgage from title.
Legal and registration: $300 to $600. To register the new lender's charge on your property.
Appraisal: $300 to $500. Only if the new lender requires one to confirm the property's value.
Title insurance: $150 to $300. Usually paid by you, and often required by the new lender.
Many lenders, especially monoline lenders competing for well-qualified borrowers, cover the legal and discharge fees, so confirm exactly what is covered before you commit. Because you are switching at renewal rather than breaking your mortgage mid-term, you also avoid the prepayment penalty that applies when you leave a term early.
Frequently asked questions
Do you need a lawyer to renew your mortgage?
No. Renewing with your current lender is just signing a new term, and nothing is registered on title, so no lawyer is involved. You may need one to switch to a new lender, and you will need one to refinance.
What is the difference between switching and refinancing?
A switch moves the same balance to a new lender, usually for a better rate. A refinance borrows more money or changes the amortization, requires the stress test, and always involves a lawyer to register the new charge.
Does switching lenders trigger the stress test?
Since November 2024, an uninsured straight switch between federally regulated lenders (the same balance, same amortization, and no new money) no longer requires the federal stress test. Refinances still do.
Will the new lender pay my switching costs?
Often, yes. Many lenders cover the discharge and legal fees to win your business, though an appraisal or title insurance may still be yours. Confirm what is covered in writing before you commit.
How early should I start?
About 120 days before your maturity date. Most lenders hold a rate that long, so starting early lets you compare offers without racing the clock.
Is switching cheaper than breaking my mortgage mid-term?
Usually. Switching at renewal avoids the prepayment penalty you would pay to break a mortgage before maturity, which can run into thousands of dollars on a fixed-rate loan.
About the author
Joel Fox is a co-founder and COO at Ownright. He helps run the firm's day-to-day work on Ontario residential closings, refinances, and sales, and writes regularly to demystify the parts of a transaction that most homeowners only encounter once or twice in their lives.
At Ownright, we focus entirely on Ontario residential real estate law. We handle refinances and the legal side of a lender switch, discharging your old mortgage and registering the new lender's charge. You can start online or get in touch with any questions.
Legal references: Land Registration Reform Act, R.S.O. 1990, c. L.4. Stress-test rules referenced are set by the Office of the Superintendent of Financial Institutions (OSFI) under Guideline B-20; consumer guidance from the Financial Consumer Agency of Canada (FCAC).
Important note: This article is not legal advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.
