Switching Lenders at Renewal: The Straight-Switch Playbook
Here’s one of the best-kept secrets in Canadian mortgages: when your term is up, you can often move to a completely different lender for a better rate without jumping through the hoops you did on your original application. It’s called a straight switch, and it’s easier than most people assume.
What a straight switch is
A straight switch, sometimes called a transfer, moves your existing mortgage balance to a new lender at renewal without adding any new money. You keep the same balance and a similar amortization, you just change who holds the mortgage and, more importantly, the rate you pay.
The big advantage: often no stress test
Because you’re not borrowing more, a straight switch frequently does not require you to re-qualify under the current stress test. That matters a lot if your income has changed or rates have moved, because it means you can chase a better rate even if you might not re-qualify for a brand-new mortgage today.
Watch the timing and the costs
Lenders will hold a rate for you up to 120 days before your maturity date, so start early. Many lenders cover the basic switch costs like legal and appraisal fees to win your business, which makes moving close to free. I always confirm who’s covering what before we commit.
When switching makes sense
If your current lender’s renewal offer isn’t competitive, a straight switch lets you vote with your feet. The savings over a full term can be substantial, and the process is mostly handled for you. The only real mistake is not checking.
Renewal on the horizon?
Let me quote your renewal against the whole market. If a switch makes sense, I’ll handle the paperwork and you just enjoy the lower rate.
Tyler Salmon, Mortgage Agent Level 2 (Licence #M21003803) · Tango Ontario (FSRA #13691)
