Transfer or Switch Your Mortgage Type

Want to change the type of mortgage you have? Or maybe you’d like to transfer your mortgage from your current bank to a different one. Here’s what you should know before making a switch.

Switching Mortgage Types

There are many mortgage options to choose from:

  • closed,
  • fixed,
  • open, and
  • variable.

Typically, a mortgage has a maturity date or term length of five years. So, every five years, you can renew your mortgage as the same type or choose something different depending on your needs.

If you switch your mortgage type when your mortgage is up for renewal, there are no additional fees.

But what if you decide halfway through your mortgage term, that you’d like to switch types?

For example, you may have an Open Variable Mortgage but if rates are steadily increasing, you might want to switch to a Closed Fixed Mortgage where your rate remains constant. How do you make the switch? And what are the costs involved in doing so?

How to switch you mortgage type before your mortgage maturity date

Contact us if you’d like to switch your mortgage type before your maturity date. We can discuss options and potential costs so you can make the best decision for your needs and goals.

Transferring Your Mortgage to Another Lender

As noted above, when your mortgage is up for renewal, you can switch mortgage types. But you can also transfer your mortgage to another lender. If you switch to a different bank or credit union, there will be transfer fees involved. The type and amount of fees you pay will be different for each lender and mortgage situation. 


Here are a few potential fees you might face:

  • Mortgage discharge fee: Your existing lender will charge $0 - $400 to end your current mortgage agreement. The exact fee should be stated in your mortgage contract.

  • Appraisal fee: Your new lender will want an appraisal done on your home. It typically costs between $150 - $500.

  • Assignment fee: Your existing lender will charge $5 - $395 to switch mortgages to your new lender.

  • Legal fee: Your lawyer will need to assist with legal paperwork in the transfer process. Legal fees can vary depending on the type of mortgage you have.

Some lenders will waive certain fees to get your mortgage business. Don’t be afraid to ask for fee rebates or mortgage transfer offers. For example, you can earn up to $3,000* to use towards transfer fees if you switch your mortgage to Innovation!

What if you decide halfway through your mortgage term, that you’d like to switch lenders?

You’ll most likely face a penalty if you transfer your mortgage before your maturity date. Typically, the penalty is up to three months of interest payments on the amount owing or the interest rate differential. (This is the  difference between the rate you are currently paying and the financial institution's current posted rate.)

Most times, people making a mortgage switch are doing so to take advantage of a lower interest rate elsewhere. However, the penalties are probably more than the interest you’d save on making a switch before your maturity date. If you can, it’s better to wait until your mortgage is up for renewal.

How to transfer your mortgage

When you transfer your mortgage to a different bank or credit union, it’s much like applying for a mortgage. They’ll look at your credit score for example and request a number of documents from you. Here is our mortgage application checklist (pdf) for some insight.

If you’re interested in transferring your mortgage to us, we’d love to help!