Switch Cost Calculator: Modeled Switch Fees

Ratellow models a typical switch-fee stack at about $833–$3,465 — roughly 6–22 basis points of a typical outstanding balance. That band is a Ratellow estimate, not an official OSFI, FCAC, or Bank of Canada figure. Discharge and assignment fees sit in an FCAC range of about $0–$400 (unregulated). Legal, notary, and conveyancing sit in an FCAC professional-fee range of about $400–$2500. Appraisal, title-insurance top-up, lender admin, and cashback clawback are optional lines you edit. The calculator totals those lines and shows the result in dollars and in basis points of your balance.

Not always, and switching is not automatically a full stress test. On 21 November 2024 OSFI removed the prescribed Minimum Qualifying Rate for uninsured straight switches — moving the same loan amount, remaining amortization, and payment schedule to a new lender at renewal. Insured straight switches were already outside that prescribed MQR. Guideline B-20 income verification and the lender’s own underwriting can still apply. Change the amount, stretch the amortization, or alter the payment schedule and the deal is a refinance, which is always tested. Staying with the incumbent is not a newly underwritten mortgage.

Basis points of balance = (total modeled switch cost ÷ outstanding balance) × 10,000. One basis point is 0.01% of the balance. On a $400,000 remaining balance, a modeled $1,750 stack is 43.75 bp. The 6–22 bp band you see in the intro is a Ratellow estimate for a typical file — your number uses the balance and fees you enter.

Modeled break-even months = total switch cost ÷ (stay monthly payment − switch monthly payment). Both payments use Canadian semi-annual compounding on the same balance and remaining amortization. If the new rate is not cheaper, there is no payment-difference payback — the stack is a cash cost. The formula is a Ratellow estimate for comparing stay versus switch; it is not a lender quote and it ignores tax, prepayment privileges, and the next renewal.