A Better Fit at Another Lender.
Your current lender isn't your only option. Switching — sometimes called a transfer — moves your existing mortgage to a new lender for a sharper rate, better terms or friendlier prepayment privileges. Done at the right moment, it can cost you little or nothing. Here's how a switch works in Vaughan and across the GTA, what's involved, and when it truly pays off.
Switch/transfer vs refinance
Two words people mix up — and they mean very different things to your lender.
Same balance, new lender
A switch moves the outstanding balance of your mortgage — as it stands today — to a new lender. No new money is added. Because the loan amount doesn't grow, switches are usually simpler, faster and lower-cost than a full refinance. This is the route most people take when they simply want a better rate or terms at renewal.
Changing the amount
A refinance changes how much you owe — for example, pulling out equity to consolidate debt, fund a renovation or invest. It's treated as a new loan against your home, so it involves more paperwork, legal work and often higher costs. If you need to borrow more, that's a refinance, not a switch.
At renewal vs mid-term
When you switch has the biggest single effect on cost.
Often little or no penalty
When your term is ending, your mortgage is up for renewal and you're generally free to move it to a new lender without a prepayment penalty. This is the natural, lowest-friction time to shop the market. Your current lender's renewal offer is rarely their best — a switch lets you compare it against what other lenders will actually put on the table.
A penalty usually applies
Leaving a closed mortgage before the term ends typically triggers a prepayment charge — often three months' interest or an interest rate differential (IRD), depending on your product. Sometimes the savings still outweigh the penalty, but the math has to be run carefully. See Breaking a Mortgage for how those charges are calculated.
What's involved
A switch is a defined process — Paul runs it end to end so you don't have to.
Review your goals & rate
We look at your current rate, remaining balance, maturity date and what you want next — a lower payment, flexible prepayments or a term that fits your plans.
Compare lenders
Paul shops multiple lenders — banks, credit unions and monoline lenders — to find the rate, terms and privileges that beat your current offer, not just match it.
Requalify
The new lender assesses your income, credit and property, and applies the mortgage stress test. Paul packages your application to present you at your strongest.
Transfer at renewal
Once approved, the new lender coordinates moving the balance over — ideally lined up with your maturity date so there's no gap and no penalty.
Costs & requalification
What a switch can cost, and what a new lender needs to say yes.
Many lenders cover or waive the standard fees on a straight switch to win your business. Where costs do apply, they're typically modest — the goal is a switch that leaves you clearly better off.
Depending on the lender and your situation, there can be a discharge fee from your current lender, plus title, registration or appraisal costs. Paul flags any of these up front so there are no surprises.
A switch to a new lender is a fresh approval. Your income, credit history and the property are reviewed again — even though you're not borrowing more.
Federally regulated lenders qualify you at a higher benchmark rate than your actual contract rate to confirm you could handle payments if rates rose. This can affect how much mortgage you qualify to carry.
Expect to provide proof of income, your current mortgage statement, property tax details, and identification. Having these ready keeps the switch moving quickly.
How Paul manages the switch
Switching lenders can feel like a hassle — which is exactly why so many homeowners default to signing whatever renewal their bank mails them. Paul removes that friction. He compares your current offer against the wider market, runs the numbers so you can see the real net benefit after any costs, coordinates the requalification and paperwork, and times the transfer to your renewal so it's seamless. You get an unbiased look at your options and a switch that's worth making — or clear advice to stay put if it isn't.
Related pages
Mortgage Solutions
See how this fits with Paul's mortgage solutions.
Learning Centre
Plain-language guides on buying, costs, credit and more.
Mortgage Renewals
The best time to shop your mortgage and compare offers.
Mortgage Portability
Take your existing mortgage with you when you move.
Breaking a Mortgage
How penalties work when you leave a term early.
A better mortgage may be one switch away.
Let's compare what other lenders can offer at your renewal.