Renewal•By Ratellow Research Team•Verified 2026-09-01•How we research

What are the costs of switching mortgage lenders at renewal in Canada?

Q: What are the costs of switching mortgage lenders at renewal in Canada?

Switching lenders at renewal in Canada typically costs $0–$1,500 for standard switches, covering discharge fees ($200–$350) and registration fees ($70–$150). Many lenders absorb these costs to win your business.

Key Points

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Read the full research guide this FAQ was derived from for more context and strategy.

Primary sources

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Read the deeper guide · Renewal

Switching Mortgage Lenders at Renewal in Canada: 2026 Straight-Switch Guide (No Stress Test)

Related Questions

How does the stress test affect my 2026 renewal options?

Same-lender renewals and uninsured straight switches (OSFI, November 21, 2024) are exempt from the prescribed MQR. A refinance, an insured switch, or any increase in loan amount still requires the stress test — greater of 5.25% or contract + 2%.

What's the difference between insured and uninsured mortgage renewals?

Insured mortgages face stricter CMHC/Sagen constraints while uninsured mortgages enjoy flexible OSFI-only guidelines.

Should I consider switching lenders or negotiate with my current lender?

Your switching decision hinges on rate differential versus requalification risk, with break-even analysis determining optimal strategy.

When should I start my mortgage renewal process?

Start your renewal process 120-180 days before your current term expires to maximize your strategic options.

Switching mortgage lenders at renewal in Canada involves several potential costs: (1) Discharge fee: your existing lender charges $200–$350 to discharge your mortgage from title. Some lenders waive this at maturity. (2) Legal/registration fee: the new lender's lawyer registers the new charge, costing $600–$1,500 — but most lenders offer a 'collateral charge transfer' (for standard charges) or pay a flat fee to a network lawyer. (3) Title insurance: some lenders require updated title insurance (~$150–$300). The critical distinction: a standard charge mortgage can be transferred between lenders with minimal cost ($200–$500 total, often absorbed by the new lender). A collateral charge mortgage (used by Bank 2, Bank 3, National Bank, and some credit unions) cannot be directly transferred — you must discharge and re-register, costing $1,000–$2,500. This 'switching penalty' is a key reason collateral charge mortgages reduce lender competition at renewal. Most borrowers with a standard charge mortgage can switch lenders for free or near-free at renewal — the new lender typically offers a 'cash-back' or fee absorption of $500–$1,000 to cover costs.