Posted On Jan 17, 2026
TL;DR
Mortgage switching means moving your existing mortgage to a new lender at renewal time (same amount, same remaining term) to get better rates or terms. Best timing: 90+ days before renewal. Key fees: appraisal ($150-$500), legal ($~1,500), discharge/registration ($5-$395), but lenders often cover these! Don't wait until the last minute or you'll get auto-renewed into whatever your current lender offers. A broker helps shop multiple lenders and handles the paperwork maze.
I got a call from a new client who'd been with his bank forever. He'd just opened his renewal letter on his kitchen counter in Spruce Grove—the offer didn't feel right, and he wasn't sure what to do next. I was sitting with my family in Stony Plain on a Sunday afternoon (post-hockey snacks and board games), and he was honestly shocked I answered the phone—on a Sunday! His first question: "Do I have to stick with them... or can I switch without a big headache?"
I hear this all the time across Parkland County and Edmonton West. Switching sounds messy and expensive, but it doesn't have to be. In his case, the renewal offer didn't line up with his goals, so we explored a switch.
Here's how I helped him—and what switching actually looks like for you.
What Is Mortgage Switching (And How's It Different from Refinancing)?
Mortgage switching means transferring your existing mortgage to a new lender for the same loan amount and remaining term. You're basically saying "thanks, but no thanks" to your current lender's renewal offer and taking your business elsewhere. In this client's case, we kept the amount the same and moved for terms that fit his goals better—no extra borrowing, no major structure changes.
Here's where people get confused: switching is NOT the same as refinancing.
Switching:
- Same mortgage amount
- Same remaining term
- Same amortization period
- New lender, potentially better rate/terms
Refinancing:
- Can change mortgage amount (take cash out or pay down)
- Can extend amortization
- Break your current mortgage (hello, penalties!)
- More paperwork, more fees
When you switch at renewal time, you're avoiding all those nasty penalties that come with breaking a mortgage mid-term. Smart, right?
Timing Is Everything: When Should You Switch?
The golden rule for switching: do it at renewal time. Your mortgage term typically runs 1-5 years, and about 90 days before it expires, your current lender will send you that renewal notice.
Here's what most Edmonton West homeowners do wrong, they wait for that renewal letter, glance at it, and think "eh, looks fine" and sign it. Don't be that person!
Start shopping around 3-4 months before your renewal date. In this client's case, he reached out just over 90 days before renewal, which kept things calm and on track. Why? Because:
- You have time to compare multiple lenders properly
- You can gather documents without rushing
- You avoid the stress of last-minute decisions
- You don't get auto-renewed into whatever terms your lender feels like offering
What Happens If You Wait Too Long?
If you don't make a decision by your renewal date, most lenders will automatically renew you into either:
- A one-year term at their posted rate (usually higher)
- An open mortgage (more expensive, but you can switch anytime)
Neither option is great for your wallet.
The Step-by-Step Switching Process
Alright, let's walk through exactly what happens when you switch mortgages. It's not as scary as it sounds, I promise.
Step 1: Shop Around and Choose Your New Lender
This is where having a mortgage broker (like me!) saves you hours of phone calls and paperwork. But if you're going solo, contact several lenders: banks, credit unions, online lenders: and compare:
- Interest rates
- Payment flexibility
- Prepayment options
- Any special features
Step 2: Submit Your Application
Once you've picked your new lender, you'll need to submit an application with documents (more on what you need below).
Step 3: Get Approved and Request Payout Statement
After your new lender approves you, they'll need a payout statement from your current lender. This document shows exactly how much you owe on your renewal date.
Step 4: Finalize the Switch
Your new lender handles most of the heavy lifting here: they'll discharge your old mortgage and register the new one. You'll sign new documents and pay any remaining fees. For this client, we coordinated everything with his schedule so closing lined up neatly with the renewal date.
Step 5: Update Your Home Insurance
Don't forget this step! Call your insurance company and let them know about the lender change.
Timeline: The whole process typically takes 2-4 weeks from application to completion, so don't leave it until the last minute. In this client's case, it wrapped up in just a few weeks because we started early and had documents ready.
Documents You'll Need to Switch
Gather these documents early so you're ready to move when you find a great offer. In this client's case, he had most of this on hand, which made approvals smoother:
✓ Government-issued photo ID (driver's license or passport)
✓ Proof of income (recent pay stub or employment letter)
✓ Current mortgage statement or that renewal letter
✓ Recent property tax bill
✓ Proof of property insurance
Most of this stuff you probably have lying around already, so it's not a huge document hunt.
The Real Talk About Fees
Let's be honest about what switching might cost you. The good news? It's usually not as expensive as you think, and lenders often cover many of these fees to win your business. In this client's case, the new lender covered some costs, which helped the numbers make sense.
Potential Fees When Switching:
Appraisal Fee: $150-$500
Your new lender needs to confirm your property value. Some lenders waive this or use automated valuation models instead.
Assignment Fee: $25-$330
This covers transferring the mortgage registration between lenders. Pretty small potatoes.
Discharge and Registration Fees: $5-$395
Your old lender charges to discharge the mortgage, and your new lender pays to register theirs.
Legal Fees: Around $1,500
You'll need a lawyer to finalize everything. This is usually the biggest cost, but many lenders will cover it or offer cashback to offset it.
The Money-Saving Truth
Here's what most Parkland County homeowners don't realize: lenders really want your business. They'll often cover appraisal fees, legal fees, or offer cash incentives to switch. Sometimes the savings on your interest rate more than make up for any fees you do pay.
What You CAN and CAN'T Change When Switching
When you switch at renewal, there are some rules about what you can adjust:
What You CAN Change:
- Interest rate (obviously!)
- Payment frequency (weekly, bi-weekly, monthly)
- Prepayment options
- Lender-specific features
What You CAN'T Change:
- Mortgage amount (stays the same)
- Remaining amortization period
- Basic mortgage structure
If you want to change your mortgage amount or extend your amortization, that's refinancing territory: which means penalties and more paperwork. This client didn't need extra funds, so a straight switch was the right fit.
Special Considerations: Collateral Charges
Quick heads up: if your current mortgage is registered as a collateral charge (common with some big banks), switching can be trickier. You might face extra fees, and you'll need to pay off or transfer any other loans secured against your property (like car loans or lines of credit). In this client's case, his mortgage wasn't collateral, so the transfer stayed simple.
Don't panic if this applies to you: it just means we need to do a bit more math to make sure switching still makes sense.
Why Working with a Broker Makes Sense
I'll be straight with you: you can absolutely switch mortgages on your own. In this client's case, I shopped options and handled the details while he got on with his week. But here's why most of my clients are glad they didn't:
I shop multiple lenders at once instead of you calling around for weeks. I know which lenders are offering the best deals right now and which ones are most likely to approve your specific situation.
I handle the paperwork maze. Mortgage applications aren't exactly light reading, and different lenders want things formatted differently. I make sure everything's submitted correctly the first time.
I manage conditions and timelines. When lenders come back with conditions (and they usually do), I help you understand what's needed and make sure we hit all the deadlines.
I negotiate on your behalf. Lenders know I bring them multiple deals, so they're often willing to offer better rates or cover more fees when I'm involved.
The best part? My services don't cost you anything: lenders pay me when deals close.
Red Flags: Don't Make These Switching Mistakes
After helping hundreds of Alberta families with their mortgages, here are the mistakes I see over and over:
❌ Waiting until your renewal letter arrives (start shopping months earlier!)
❌ Only comparing interest rates (look at the whole package: fees, features, flexibility)
❌ Not reading the fine print on prepayment penalties and restrictions
❌ Assuming your current lender will match any offer you find
❌ Forgetting to update insurance after switching
Your Next Steps
If your renewal is coming up in the next 6 months, now's the time to start exploring your options. Even if renewal seems far off, it's worth understanding what's available so you're not making rushed decisions later.
The mortgage market changes constantly, and what was a great deal last year might not be competitive today. Plus, your financial situation has probably evolved since you first got your mortgage: maybe you're making more money, have more equity, or want different payment flexibility.
Whether you're in Stony Plain, Spruce Grove, Edmonton West, or anywhere else in Alberta, the process is the same. And honestly? It's usually less stressful than people expect.
Don't let auto-renewal happen to you. Take control, shop around, and make sure your mortgage is still working as hard for you as you are for it.
: Tamara Ball, Mortgage Broker, The Mortgage Centre
Want to discuss your rate options? Let's chat about what makes sense for your situation. Every homeowner's needs are different, and I'd rather spend 15 minutes understanding your goals than have you stuck in a mortgage that doesn't fit your life.