Mortgage term
Switch (transfer)
Definition
Moving your existing mortgage balance from one lender to another at renewal, without increasing the loan or amortization. Since November 2024, uninsured renewal switches are exempt from the OSFI stress test.
A switch is different from a refinance — the loan amount and amortization stay the same, so no new equity is drawn and the stress-test exemption applies. Most lenders offer 'switch programs' that cover legal, appraisal, and discharge fees to attract renewal business.
A standard-charge switch is usually free or near-free ($0–$300). A collateral-charge switch typically costs $700–$1,000 because a lawyer must discharge and re-register.