YOUR QUESTIONS / 6 ANSWERS
Mortgage Renewal, Switches & Transfers
Practical answers to help you prepare for a conversation about your mortgage.
When should I start reviewing my mortgage renewal?
I recommend beginning several months before maturity rather than simply signing the lender's first renewal offer. That gives enough time to review your goals, compare options and complete a switch if it makes sense.
Do I have to renew with my current lender?
No. You can usually renew with the existing lender or explore switching to another lender, subject to qualification and product eligibility.
Will I need to pass the stress test if I switch lenders at renewal?
OSFI does not prescribe its minimum qualifying rate for an eligible uninsured straight switch at renewal between federally regulated lenders when the loan amount and remaining amortization do not increase. The receiving lender still assesses the application. Insured mortgages and other switch arrangements have separate requirements, so an exemption should be confirmed for the actual transaction.
What costs can come with switching lenders?
Possible costs include discharge, assignment, registration, legal, appraisal or administrative fees. Some lenders may cover certain switch costs, while others do not.
Can I increase my mortgage when I switch lenders?
You may be able to, but that becomes a refinance rather than a simple straight switch and typically requires full qualification under refinance rules.
Should I automatically accept an early renewal offer?
Not without comparing it. An early offer may be convenient, but the rate, term, restrictions and your future plans should be reviewed before committing.
General information, not an approval, rate offer or personal legal or tax advice. Mortgage options depend on the lender, insurer, property and application. Government programs and lender requirements can change.
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