This search result was generated using AI. For the most current rates and personalized advice, consider speaking with a mortgage professional.
Switching your mortgage lender in Canada is a common strategy to secure a lower interest rate, access better terms, or take advantage of lender-specific incentives. This can often be done at the end of your mortgage term with minimal penalties, but it is also possible mid-term, though costs may be higher. Major Canadian banks and lenders offer dedicated programs and incentives to attract borrowers looking to switch.
| Fee Type | Typical Amount (CAD) | Notes |
|---|---|---|
| Discharge Fee | Up to $400 | Charged by the current lender |
| Appraisal Fee | Up to $500 | Often covered by new lender as incentive |
| Legal Fees | $1,000–$2,000+ | For processing title transfer |
| Assignment Fee | Up to $500 | May apply if switching within a bank’s brand |
| Prepayment Penalty | Varies | Applies if switching before term ends |
Many lenders offer cashback or cover some fees as incentives for switching.
| Bank | Incentives & Features | Switch Process Highlights |
|---|---|---|
| RBC | Covers up to $1,100 in switch fees for eligible mortgages | Online or with specialist; permission form needed |
| Scotiabank | Up to $1,500 towards switch fees; $300 appraisal fee waived; $500 cashback for online applications | Online or with advisor; minimum mortgage $100,000 |
| CIBC | Up to $4,500 cashback on select mortgages | Guided experience, rate hold for 120 days |
| TD | Dedicated mortgage specialist; personalized advice | Simple 3-step process, TD handles paperwork |
While switching is more common at renewal, first-time homebuyer programs do not directly affect switching, but programs like the First-Time Home Buyers’ Incentive (FTHBI) may have restrictions or implications if you switch lenders during your incentive period. Always check conditions of any government program you’re participating in.
| Lender | Typical Switching Incentive | Minimum Mortgage | Online Application | Notable Features |
|---|---|---|---|---|
| RBC | Up to $1,100 fees covered | Varies | Yes | Dedicated specialist support |
| Scotiabank | Up to $1,500 + $500 cashback | $100,000 | Yes | Appraisal fee coverage, not in QC |
| CIBC | Up to $4,500 cashback | Varies | Yes | Flexible payments, rate holds |
| TD | Personalized process | Varies | Yes | Expert advice, equity access |
For the most up-to-date and competitive rates across Canadian lenders, use a platform like theratefinder, which allows you to compare rates for residential, commercial, and construction mortgages and guides you through a multi-step application process to maximize your savings and incentives.
Ready to switch? Begin your application with theratefinder to access multiple offers from top Canadian lenders and get a personalized mortgage solution: theratefinder.ca/onboarding
Switching your mortgage lender in Canada can save you money and provide better mortgage features, especially at renewal. While there are some fees involved, many lenders offer significant incentives to cover these costs. Compare rates, review incentives, and ensure you understand the process and requirements in your province for a smooth transition.