How Do I Switch Lenders When Renewing My Mortgage in Ontario?
The process is far simpler than applying for your original mortgage.
When your mortgage renewal approaches, you’re not obligated to stay with your current lender — even though most Canadians assume they have to. Renewal time is one of the best opportunities to negotiate better terms, secure a better rate, and choose a mortgage strategy that helps you build long-term wealth.
Switching lenders during renewal is much easier than most homeowners expect. Here’s how the process works and how you can maximize the savings.
Why Renewal Time Matters
Your lender usually contacts you 30 days before your mortgage matures, offering a quick “sign and return” renewal.
But that timing benefits them, not you.
By starting your renewal strategy 4–6 months early, you can:
- Compare multiple lenders
- Secure a better rate
- Explore debt-reduction strategies
- Improve cash flow
- Restructure your mortgage for faster payoff
- Avoid missing out on more favorable products
A licensed mortgage broker can compare lenders for you and show you options your bank won’t mention.
Step 1: Review Your Current Mortgage
Before switching lenders, it helps to understand:
- Remaining amortization
- Balance at renewal
- Current rate and term
- Penalty (if renewing early)
- Prepayment privileges
- Any special features you currently rely on
This review identifies whether staying or switching puts you further ahead financially.
For an overview of all mortgage options, you can also explore my full service list here:
Mortgage Services – Jodi Habel
Step 2: Compare Renewal Offers
Most lenders will simply offer you the rate they want you to take — not the best rate you could get in the market.
Mortgage brokers compare multiple banks, credit unions, monoline lenders, and flexible products to find:
- Lower rates
- Better amortization structures
- Better prepayment privileges
- Innovative options (HELOC blends, all-in-one accounts, etc.)
This comparison creates a clearer picture of what your next 5 years will look like.
Step 3: Apply With Your New Lender
Switching lenders during renewal requires a simple application so the new lender can assess your financial picture. They’ll ask for:
- Updated income documents
- Property tax bill
- Recent mortgage statement
- Insurance details
Step 4: New Lender Pays Out the Old Lender
Once approved, your new lender sends funds directly to your previous lender.
This is called a “switch” or “transfer” mortgage.
There is usually no penalty, because your mortgage term has ended.
Step 5: Lawyer Finalizes the Switch
A lawyer or title professional handles the registration of the new lender. This involves:
- Discharging the old mortgage
- Registering the new one
- Verifying property details
Costs are generally low, and many lenders cover some (or all) of the switching fees.
Step 6: Begin Your New Term
Once the switch is complete, your payments simply begin with your new lender. No interruption. No complex steps.
By switching lenders at renewal, homeowners often enjoy:
- Lower monthly payments
- Better prepayment flexibility
- Lower interest over time
- Improved long-term cash flow
- Access to strategies that help you become mortgage-free faster
Final Thoughts
Switching lenders during your mortgage renewal is a simple and powerful way to secure better terms and position your finances for long-term success. If your renewal date is coming up, take the opportunity to explore your options early and put yourself in the strongest position possible.
Connect With Me
Jodi Habel – Mortgage Broker
Ontario Mortgage Broker | Residential Financing & Renewal Strategies
Website: https://jhabelmortgages.ca
Apply Online: https://r.mtg-app.com/jodi-habel
Book a Call: https://calendly.com/jodihabel
Email: jodi@jhabelmortgages.ca
Phone: 519-590-5634
All mortgages subject to approval. FSRA Lic. 13691.