Many Quebec homeowners believe they're "locked in" with their current bank for the length of the amortization. That's false. Every 5 years (or at the end of each term), you have a window where switching lenders costs nothing — no prepayment penalty, and most of the time no notary fees either. That operation is called a mortgage transfer.
This guide covers how it works, what to watch for, and why AMF-licensed mortgage brokers recommend systematically shopping at every maturity.
The golden rule: at maturity, the contract is over
A Canadian mortgage runs on two layers:
- The amortization (often 25 or 30 years): the total time to repay the principal.
- The term (often 5 years, sometimes 1 to 7): the period during which the rate and conditions are locked.
At the end of each term, the contract with the lender ends. You can:
- Renew with the same lender (sign a new term).
- Transfer to another lender, with no penalty.
- Refinance (adjusting the principal or amortization) — a distinct operation that can carry other fees.
Right at maturity, option 2 triggers no prepayment penalty. The contract is over: you're not "breaking" anything.
How much it actually costs
In most cases, the incoming lender absorbs the transfer fees — that's their way of attracting your file. Typical costs:
| Item | Cost | Covered by |
|---|---|---|
| Assignment fee | $250-600 | Often the incoming lender |
| Appraisal fee | $300-500 | Often the incoming lender |
| Notarized assignment deed | $200-400 | Sometimes covered |
| Net to you | $0-600 |
Compared with the savings over 5 years from a better rate, the math is almost always favourable. A 0.20% gap on a $350,000 mortgage, 5-year term, represents roughly $3,500 in interest saved. Uncovered transfer fees pay back in a few months.
The realistic timeline for a stress-free transfer
| When | What to do |
|---|---|
| 6 months before maturity | Contact an AMF broker — request an assessment and rate hold with target lenders. |
| 4 months before maturity | Pick the lender. The broker submits the full transfer file. |
| 2 months before maturity | Sign the assignment deed at the notary. Coordinate with the outgoing lender. |
| Maturity date | The new lender funds; the old one is paid out. No penalty. |
If you wait for your current bank's letter (typically sent 30 to 45 days before maturity), it's too late to shop calmly. A transfer file takes 4 to 6 weeks. That's exactly what the outgoing bank counts on — the letter arrives when you no longer have time to leave.
How much do you actually save by transferring?
Here's a worked example that shows the stakes:
Profile: $320,000 mortgage, 5-year term.
- Renewal offer from the current bank: 5.34% (posted rate).
- Broker's offer after comparing 30+ lenders: 4.89%.
- Gap: 0.45%.
Impact over 5 years:
- Payment at 5.34%: roughly $1,940
- Payment at 4.89%: roughly $1,850
- Monthly savings: $90
- Total savings over 5 years: $5,400 in payments + principal paid down faster
And that doesn't count negotiation on non-rate conditions (prepayment privileges, portability, IRD formula).
The 3 common traps
1. Confusing transfer with refinance
If you add principal (debt consolidation, renovation, second-property purchase), it's no longer a transfer — it's a refinance. Notary fees kick in ($1,500-2,500) and a penalty can apply if you're not at maturity. Clarify this explicitly with an AMF broker before signing anything.
2. The collateral charge that complicates the exit
Some banks (notably TD and Tangerine) register the mortgage as a collateral charge rather than a conventional mortgage. Advantage for them: makes it easy to add lines of credit later. Disadvantage for you: transferring to another lender often requires a full new notarized deed — fees jump from $0-600 to $1,500-2,500.
It's not a secret, but many borrowers only discover it when they try to transfer. Check the registration type (conventional mortgage or collateral charge) at the analysis stage, not after signing the transfer mandate.
3. Signing the renewal letter before comparing
Once you've signed the renewal letter, you're committed to a new term. A transfer becomes impossible without penalty until the next maturity — 5 years later. The rule is simple: don't sign anything before speaking to an AMF broker.
This holds even if you plan to stay with your current lender — at least knowing what the market is offering gives you leverage to negotiate.
Transferring mid-term: is it possible?
Technically yes — an early renewal lets you exit before maturity. But it triggers a penalty, usually the greater of three months' interest and the IRD penalty. For a fixed rate with 2-3 years still to run, the IRD can hit several thousand dollars.
The math can still be positive if the rate gap is large enough. A broker runs that calculation with you: penalty + fees versus savings on the new term.
Read our guide: 5 costly mortgage renewal mistakes.
What Courteo does
Courteo is not a mortgage broker. In practice: we connect you with an AMF-licensed broker from the Courteo network, who will be able to:
- Read your current contract (collateral charge or conventional mortgage?).
- Present available transfer options in your region with real rates.
- Calculate whether an early transfer (before maturity) is worthwhile despite the penalty.
- Submit the complete file and coordinate with the notary.
It's that broker — not Courteo — who negotiates with lenders and guides you through.
Frequently asked questions on mortgage transfer in Quebec
Can my current lender prevent me from transferring at maturity?
No. At maturity, the contract is over. Your current lender can make a counter-offer and try to keep you — if they match the market rate, you can stay. But they have no legal way to hold you.
Do I need to pass a new stress test for a transfer?
In principle, no — a straight transfer (same amount, same remaining amortization) doesn't trigger a new stress test in the regulatory sense. In practice, the new lender still reviews your profile. If your situation has deteriorated significantly since the original mortgage, some lenders may decline the transfer — but it's rare.
Can you transfer while behind on payments?
No. A lender won't take on a file in default. The loan must be in good standing. If you have arrears, clear them before starting the transfer process.
Can you change the rate type (fixed to variable or vice versa) at transfer?
Yes. A transfer is also an opportunity to revisit the loan structure — moving from a 5-year fixed to a 3-year variable, or the reverse. It's a decision to make with the broker based on your profile and your horizon.