# How should brokers advise borrowers on collateral charge renewals?

> Collateral-charge renewals cost roughly $1,600 to discharge and re-register — brokers should only recommend switching when the rate differential saves more than that over the new term.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/how-should-brokers-advise-borrowers-on-collateral-charge-renewals

## Answer
**Break-even Calculation Components**

| Fee Component    | Amount   |
|------------------|----------|
| Discharge Fee    | ~$1,000  |
| (Other fees are part of standard switch costs but not included here.) |

*Note: The canonical switch costs total $1,600, but only the discharge fee is highlighted for simplicity in this scenario.*

## 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