Transfer or Switch Your Mortgage Type

Want to change the type of mortgage you have? Or maybe you’d like to transfer your mortgage from your current bank to a different one. Here’s what you should know before making a switch.

Switch Types Transfer Mortgage

Switching Mortgage Types

There are many mortgage options to choose from:

closed,
fixed,
open, and
variable.

Typically, a mortgage has a maturity date or term length of five years. So, every five years, you can renew your mortgage as the same type or choose something different depending on your needs.

If you switch your mortgage type when your mortgage is up for renewal, there are no additional fees.

How Does Switching Mortgages Work?

The process of switching a mortgage in Canada doesn’t mean changing your lender, but rather choosing a different loan type within the same institution. If you are thinking about switching mortgage types at Innovation, our experts are here to help.

Please note that there might be fees involved, so it's best to switch your existing mortgage at the end of its maturity date. The good news is, you can always swap a variable rate mortgage for a fixed rate mortgage at any time without paying any fees.

Can I Switch My Home Loan Type Before the Maturity Date?

Switching mortgage types is best done on the maturity date of your existing loan, but what if you decide halfway through your term that you'd like to switch types?

For example, you may have an Open Variable Mortgage but if rates are steadily increasing, you might want to switch to a Closed Fixed loan where your rate remains constant. How do you make the switch? And what are the costs involved in doing so?

Contact us to discuss your options and potential costs so you can make the best decision for your needs, goals, and budget.

Benefits of Mortgage Switching

If you’re still re-evaluating your decision on whether to switch mortgage types or not, here are some potential benefits to help you manage the decision:

Switching mortgage types could lead to better interest rates
New loan offers might have emerged within your maturity date, offering better conditions
Since you’re already an Innovation mortgage holder, there is no home appraisal, proof of income, or proof of employment requirements since we already have this information
Special benefits could be available if you switch to a certain loan type

Changing from a variable interest loan to a fixed interest mortgage has no fees

Want to Switch Your Mortgage?

Contact us to get started! We’re happy to explain more about transitioning to a different loan type that could be a better fit for your budget.

Transferring Your Mortgage to Another Lender

As noted above, when your mortgage is up for renewal, you can switch mortgage types. But you can also transfer your mortgage to another lender. If you switch to a different bank or credit union, there will be transfer fees involved. The type and amount of fees you pay will be different for each lender and mortgage situation.

What is a Mortgage Transfer?

Unlike switching types, a mortgage transfer involves switching lenders. Transferring your loan to another institution can be complex, so you will need to first check with your current lender if your loan can be transferred before the maturity date. Even if it can, there will probably be penalties you’ll have to take into consideration as well.

The good news is, you can work with our team to give you the necessary steps to take, from getting a home appraisal to determining an interest rate. It’s our job to make switching mortgage lenders seamless and easy.

Transferring your home loan is not the same as transferring a mortgage from one house to another. That process is called “Mortgage Porting,” and it works a bit differently. But, if you’re wondering, “Can you transfer your mortgage to another house?" our team of experts is here for advice regarding that possibility as well.

How Does a Transfer of Mortgage Work?

Your first step will be speaking to your current lender to see if you can make a mortgage transfer before your loan’s maturity date. If you’re allowed to, be sure to ask what fees or penalties you’ll be charged so you can budget accordingly.

Your next step is to reach out to us for pre-approval. If you are making a mortgage transfer to us, you can expect the best possible terms and interest rates. You don't need a mortgage broker — we will guide you through the process and help ensure a smooth transition to your new home loan with us. That includes setting up automated payments for you at any frequency you choose. You might even want to make additional payments to your new mortgage to be debt-free sooner.

To get your mortgage pre-approval even faster, see our mortgage application checklist (pdf). It includes all the documents you need before meeting with us. If you have any questions about the checklist or your mortgage transfer, give us a call at 1.866.446.7001 and we’d be happy to help.

Benefits of Transferring a Mortgage

If you decide to transfer a mortgage to another bank or credit union in Canada, you can potentially get lower mortgage rates and better repayment options.

So, why switch to Innovation? You’ll enjoy:

Low interest rates
Convenient, friendly, expert service
Member Rewards cash for having your mortgage with us

Outstanding pre-payment options that can save you thousands

Costs of Transferring a Mortgage

Every mortgage transfer comes with a few fees, and we’ll give you a transparent overview of each when you get in touch with our experts. In general, these are the potential fees you might face:

Home loan discharge fee: Your existing lender will charge $0 - $400 to end your current mortgage agreement. The exact fee should be stated in your mortgage contract.
Appraisal fee: Your new lender will want an appraisal done on your home. It typically costs between $150 - $500.

Assignment fee: Your existing lender will charge $5 - $395 to switch mortgages to your new lender.
Legal fee: Your lawyer will need to assist with legal paperwork in the transfer process, so legal fees will apply.

Ready to Transfer Your Mortgage?

When you transfer a mortgage to another bank or credit union, it's much like applying for a new mortgage. Here is our mortgage application checklist (pdf) to help you prepare for your application. You can also use our mortgage calculators to discover your ideal mortgage and convenient repayment terms.

Making a mortgage transfer to another bank or credit union may seem daunting, but it could save you money on interest charges and fees. It could also give you more repayment flexibility, which means you’re debt-free sooner. Be sure to reach out to our friendly support team for a free consultation on making the move!

Whether you’re transferring a mortgage or switching a loan type, we’re here to discuss all the details and give you the most beneficial offer. Contact us to get started today!