Step-by-step client guide
Mortgage renewal vs switch to a new lender
Your renewal letter is not a quote — it's an opening offer. Switching to a new lender is easier than most people think, and the rate difference is usually real money.
Who this guide is for
Homeowners within 6 months of mortgage renewal.
Why this is harder than a standard file
Switches inside insured-mortgage rules don't trigger the stress test for the same balance — but switches with increases (refinance) do.
Track exactly where you are on this file.
Tick off each step and document as you complete it. Progress saves on this device — no account, no sign-in. Pick up later from the resume banner.
Get quotes from a broker and at least one other bank. Don't sign the renewal letter from your current lender yet.
Your plan
0 of 3 plan steps completeDocuments to assemble
0 of 3 documents gatheredMistakes we see clients make in this scenario
- ·Auto-signing the renewal letter without shopping.
- ·Switching and increasing the balance — that's a refinance, with stress test and full re-qualification.
Red flags that will sink the file
- Letting renewal lapse — the lender can move you to an open variable rate at much higher cost.
What this realistically costs you
- Same-balance switch: most lenders cover legal and appraisal costs.
- A 30bps rate improvement on a $500k mortgage is roughly $1,500/year — worth shopping for.
How the underwriter actually reads this
The switch process is meaningfully easier than a refinance because the insurance status carries over. Brokers add the most value here.
What moves this file up
- Start shopping 120 days before renewal
- Do not increase the balance unless you mean to trigger a refinance
- Compare prepayment privileges and penalty structures, not just rate
Questions clients ask us
Yes, you re-qualify at the new lender — but for the same mortgage balance, you're not subject to the stress test under the recent OSFI rule change for straight switches.
Get a real, underwritten pre-approval — not a system-generated number.
We'll route your file to a lender whose policy fits this scenario. No credit pull until you've seen the plan.
Start your pre-approvalOther scenarios
Written and reviewed by the Canadian Mortgage Compass Editorial Desk. This page is general information for Canadian readers and is not mortgage, legal, tax, or financial advice, and not an offer of credit. Rules, rates, and lender policies change; confirm your own situation with a licensed mortgage professional in your province. Editorial policy · Corrections