# How do collateral charges impact 2026 mortgage switching costs?

> Section heading: "How do collateral charges impact 2026 mortgage switching costs?".

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/how-do-collateral-charges-impact-2026-mortgage-switching-costs

## Answer
Content:
While the OSFI B-20 update removed the stress test for switches, it did not eliminate the legal friction of collateral charges. Borrowers must pay solicitor fees to discharge the charge, as most lenders cannot accept a collateral charge via the standard 'assignment' process.

**Data Summary:**

| Switch Type          | Cost Range         |
|---------------------|--------------------|
| Standard Switch Cost | ~$0 - $300 (Assignment) |
| Collateral Switch Cost | ~$800 - $1,500 (Full legal) |
| Mitigation          | Many 2026 renewal specials now include legal fee absorption for collateral switches. |

## Related guide
- https://ratellow.com/guides/transferring-collateral-charge

## Sources
- Final Capital Adequacy Requirements Guideline (2026) — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-2026-chapter-4-credit-risk-standardized-approach
- BANKOFCANADA — https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/#Introduction
- OSFI-BSIF — https://www.osfi-bsif.gc.ca/en/news/backgrounder-final-capital-adequacy-requirements-guideline-2026