Definition
A mortgage transfer (or "switch") is the operation of moving your mortgage to a new lender at maturity of the current term, without changing the balance or remaining amortization. It is the primary tool to escape the loyalty premium.
Procedure: 4-6 months before maturity, you (or your broker) file an application with the new lender. If approved, the new lender pays the remaining balance to the outgoing lender on maturity day and registers its own mortgage deed at the Land Registry. No breakage penalty (the term ends naturally).
Costs: discharge fees at the old lender (CA$300-400), notary fees (CA$1,200-1,800 in Québec), appraisal fees (CA$300-500). Several lenders offer "covered transfer" programs where these fees are absorbed or reimbursed. Since November 2024, the mortgage stress test no longer applies to non-insured transfers (OSFI), facilitating lender competition.