Last updated: September 2026
TL;DR: When your mortgage term ends in Ontario, you do not have to stay with your current lender. A switch moves your loan to a new lender at renewal — same balance, same amortization — and many borrowers switch for a better rate or better service. Start four to six months before your renewal date. Time the move for the renewal date itself to avoid prepayment charges, and watch for discharge fees and legal costs.
What is a mortgage switch, and how is it different from a refinance?
A switch moves your mortgage to a new lender when your term ends — same loan amount, same amortization, new rate and terms. A refinance is different: you change the amount you owe, it can happen any time, and it needs more documents, a full appraisal, and higher costs.
If you are also thinking about borrowing more on your home, read more about renewals and refinancing options at mortgage renewals and refinancing.
Do I have to stay with my current lender when my mortgage renews?
No. This is the biggest myth about renewals. When your term ends, your mortgage is open. You are free to move it to any lender that will accept your application.
Your current lender will send a renewal letter with an offered rate — rarely their lowest. Many borrowers just sign it because it feels easy. A switch is your chance to shop: other lenders may offer a lower rate, better prepayment options, or better service.
If your situation is less standard — for example, you are self-employed or your credit has taken a hit — a private mortgage may also be worth a look. You can learn more at private mortgages in Ontario.
When should I start the switching process?
Start four to six months before your renewal date. This is called the early renewal window.
Most lenders let you lock a rate 90 to 120 days before your term ends — if rates rise, your locked rate holds; if they fall, many lenders match. Starting early also gives you time to fix document or credit issues. Start late and you lose negotiating room; miss the date entirely and your lender may roll you into a much higher open or short-term rate.
A helpful way to compare offers is to run the numbers yourself first. Try the mortgage calculator to see what different rates do to your payment.
What are the steps to switch mortgage lenders?
Switching is simpler than most people expect. Here is how it usually goes.
Step 1: Check your current mortgage details. Find your renewal date, your current rate, your remaining balance, and your amortization. You will find these in your renewal letter or your online account.
Step 2: Gather your documents. A new lender will ask for proof of income, your most recent property tax bill, your home insurance, and ID. If you are self-employed, have your last two years of tax returns ready.
Step 3: Apply with the new lender. A broker can submit your application to several lenders at once, so you answer questions once instead of repeating yourself to five banks.
Step 4: Get approved. The new lender reviews your application, checks your credit, and confirms your property value — often with a valuation the lender pays for, but ask to be sure.
Step 5: Legal work. A lawyer or notary registers the new lender’s charge and pays out your old lender — often a simple title transfer in Ontario, which keeps costs down.
Step 6: Your old mortgage is paid out. On your renewal date, the new lender pays out the old one and you start paying the new lender.
The whole process usually takes three to four weeks once you apply.
What costs and fees should I expect when switching?
A switch at renewal is one of the cheapest mortgage moves you can make. Here is what may come up.
Discharge fee. Your old lender charges a fee to close your mortgage and remove its registration — usually a few hundred dollars in Ontario. Ask what they charge before you decide.
Legal fees. A lawyer or notary handles the transfer — a simple switch costs less than a purchase or refinance, and many lenders cover it as a welcome offer. Always ask.
Appraisal or valuation. The new lender needs your home’s current value — often via a free automated valuation, but ask who pays if a full appraisal is needed.
Prepayment charges. The big one: switching before your renewal date means breaking your mortgage early — large penalties on fixed rates, usually three months of interest on variable. Time your switch for the renewal date itself.
What about a penalty to switch after renewal? Once your term has ended and you are on the new term, normal rules apply again. But if you move on the exact renewal date, there is no prepayment charge at all. That is the main financial benefit of switching at renewal instead of mid-term.
What should I watch out for when switching lenders?
A switch is simple, but small mistakes can cost you. Watch for these.
Timing your payout. The new lender must pay out the old lender on or after your renewal date, not before. If the money moves early, you get hit with a prepayment charge. Confirm the payout date in writing with both sides.
Portability of prepayment privileges. If you like making lump-sum payments, check the new lender’s rules. Some lenders allow larger annual prepayments than others. If you paid down your mortgage aggressively before, make sure the new lender lets you keep that habit.
Collateral charges. Some lenders register your mortgage as a collateral charge. This can make future switches harder and more expensive, because moving a collateral charge often needs a full legal refinance instead of a simple switch. Ask whether the new lender uses a standard charge or a collateral charge.
Bonuses and cashback. Some lenders offer cashback to win your business — but a slightly higher rate with cashback can cost more over the term than a lower rate with no bonus. Compare total cost, not the headline.
Your credit score. A few credit checks in a short window are normal — but avoid new credit cards or car loans during the switch, since new debt can change your approval.
Insurance and taxes. Confirm your property tax and home insurance arrangements carry over — if your old lender collected taxes through your payment, make sure the new one does too.
If your financial picture is unusual — a job change, a separation, a bruised credit file — talk to a broker before you apply. Applying in the wrong order can waste your one clean shot. Ontario borrowers in the Toronto area can also read about local options at private mortgage Toronto.
Can I switch lenders if my credit score dropped?
Yes, in many cases. A small drop is often fine. A large drop may limit your options, but it does not always block a switch. A broker can tell you where you stand before you apply anywhere.
Will switching lenders affect my amortization?
No — not if it is a straight switch. Your amortization stays the same. The new lender simply takes over the remaining balance and the remaining time. If you want to change your amortization, that becomes a refinance, not a switch.
Do I need a lawyer to switch my mortgage?
Usually yes, but the legal work on a switch is light. In Ontario, a lawyer or notary registers the new lender’s charge and discharges the old one. Many lenders cover this cost on a simple switch, so ask.
Can I switch from a fixed rate to a variable rate at renewal?
Yes. Renewal is the perfect time to change rate types. You can move from fixed to variable, or variable to fixed, with no penalty as long as the switch happens at the renewal date.
What if my renewal date has already passed?
You can still switch, but your old lender may have moved you into a short-term or open rate. Act quickly. The longer you wait, the more interest you pay at that higher rate. Start the switch process right away.
Talk to Kia about your renewal
Your renewal is a chance to get a better deal — not an obligation to stay. If your mortgage is coming up for renewal in Ontario, get a second opinion before you sign anything.
Kia Pakravan is a licensed Ontario mortgage broker (FSRA Licence #13380). Call (416) 716-9696 or visit 12930 Yonge Street, Richmond Hill, ON for straightforward advice.