Navigating the mortgage renewal process can be daunting, but understanding the key aspects and common questions can make it much smoother and more advantageous for you. Navigating the mortgage renewal process can be daunting, but understanding the key aspects and common questions can make it much smoother and more advantageous for you.


Are there hidden fees?

If you are completing a straightforward renewal with your current lender, there are typically no associated fees. However, as a borrower, it is crucial for your best interests to explore all the options available to you at renewal time and not just sign on the dotted line.

Here are some scenarios in which fees could apply:

  • If you initiate the renewal process ahead of schedule it may result in penalty fees. Borrowers have the option to begin the renewal process up to 120 days prior to their scheduled renewal date. 

  • If you decide to change lenders this could lead to incurring a discharge fee imposed by your current lender (approx. $300).

  • If you opt for refinancing your mortgage, this may necessitate undergoing an appraisal (approx. $350).

Apply for the a mortgage renewal or new mortgage below

What are Mortgage Renewal fees

As mentioned above, there are some scenarios where fees may apply for mortgage renewals. Make sure you thoroughly investigate the expenses associated with switching lenders, which may include:

  • Initial charges with the new lender, including discharge, registration, transfer, and/or assignment fees from your existing lender.

  • An appraisal fee to verify the property's value (if required).

  • Additional administrative or legal fees.

Though there may be fees associated with changing lenders, borrowers also stand to save significantly in mortgage interest paid, or may benefit from a different mortgage product with more flexibility.

Speaking with your preferred Mortgage professional is the best way to assess the options available to you.

What are Mortgage Transfer fees?

Again, Mortgage Transfer fees may apply when transferring your mortgage to a new lender.

Here are is a breakdown of the potential fees you may encounter:

  1. Mortgage Discharge Fee: Your current lender may impose a fee ranging from $100 to $400 for terminating your existing mortgage agreement. The exact amount should be outlined in your mortgage contract.

  2. Appraisal Fee: Your new lender will likely require a property appraisal, which typically costs between $350 and $500.

  3. Assignment Fee: Your current lender may charge a fee ranging from $5 to $395 for transferring your mortgage to the new lender.

  4. Legal Fee: Your lawyer will need to handle the legal documentation during the transfer process. Legal fees can vary depending on the type of mortgage you hold.

What are Exit Transfer fees?

Mortgage Discharge Fees could exist as part of a mortgage transfer or payout.

When you request a mortgage discharge, your lender may charge you a discharge fee to cover the costs of processing the discharge. This fee can vary depending on the lender and the type of mortgage you have. It typically ranges from $100 to $400.

To find out exactly how much you'll have to pay for mortgage discharge fees, you should look at the terms and conditions in your mortgage contract. If you have a mortgage with a big bank or a federally regulated lender, they have to tell you about these fees in your contract. But if this information isn’t in your contract, you can contact the Financial Consumer Agency of Canada (FCAC) and tell them about it. They can help you sort it out.

What are Title transfer fees? Does your Mortgage amount change?

Title transfer fees occur at the Land Title Office to change the home loan listed on the title of your property. 

What Happens to Mortgage Loan Insurance Premiums When You Switch Lenders?

You may have to pay an additional mortgage loan insurance premium when you switch lenders, if:

  • the amount of your loan increases

  • you are required to extend the amortization period to qualify for the new loan

If you currently have mortgage loan insurance on your current mortgage, be sure to inform your mortgage broker. This step can potentially prevent you from having to pay mortgage loan insurance premiums twice. To do this, request a certificate number from your current lender. They will provide you with a copy of the insurance certificate when you receive your mortgage contract.

Additionally, as part of your mortgage agreement, you will need to sign registration documents. You may need to arrange a meeting with your lawyer or notary to complete this part of the process.

What will your mortgage payments look like?

Your mortgage payments will be recalculated based on your new interest rate and remaining mortgage loan balance and amortization. Try our free calculator here.

Your mortgage payment is made up primarily of 4 factors:

  • Amount owing
    The more you borrow, the higher your required payment will be.

  • Interest rate
    A higher interest rate will lead to more interest being paid on the mortgage loan.

  • Payment frequency
    Paying your mortgage more frequently will reduce the amount you owe in the long term.

  • Amortization period
    Longer amortization results in lower payments but will increase the total amount of interest paid over the lifetime of your mortgage.

Is a month skipped during a mortgage renewal?

You may miss a monthly payment during mortgage renewal or refinance, but the remaining principal balance of your mortgage does not change. 


What about the interest for the skipped month?

Interest will continue to accrue on the total principal balance.

Can you drop money before renewing - when can you do this? 

Regardless of the specific term type, when it's time for your mortgage to be renewed, it is briefly considered "open" for just one day. This day is reserved for initiating a new mortgage term, whether you decide to continue with your current lender or switch to a new one. However, this also means that during this single day, you have the freedom to pay off any amount of your mortgage without being bound by the limitations of your previous mortgage’s prepayment privileges.

You can opt to pay off your entire mortgage on this day or make a substantial payment before transferring your mortgage to a different lender.

To make the lump sum payment, you will provide a bank draft to either the title officer or lawyer, whoever is facilitating the renewal or refinance. 

Does your new mortgage allow you to port? 

Each mortgage product comes with a specific set of privileges and restrictions. If portability is important to you, be sure to advise your mortgage broker so that you choose a portable mortgage product at renewal. 

How many days do you have to inform insurance of your switch ("first loss payable" )

You should inform your insurance of your mortgage lender change a minimum of 3-5 business days ahead of the renewal date.

Common terms you may see:

LOE - Letter of employment

YTD - Year-to-date

HELOC - Home Equity Line of Credit 

What is a HELOC and why its useful?

A Home Equity Line of Credit (HELOC) is a valuable tool for tapping into your home's equity. Many Canadians utilize HELOCs for various purposes such as investments, home improvements, maintaining monthly finances, or buying additional properties.

Interestingly, HELOCs can also be helpful in other ways. In some cases, fraudsters may focus on properties that have no outstanding mortgage or collateral during the sale process – essentially, properties that are "free and clear." While homeowners typically aim to own their homes outright, having a small home equity line of credit or a modest mortgage balance can actually act as a safeguard against real estate title fraud.

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