Can I switch mortgage lenders at renewal without penalties in Ontario?

Yes — switching lenders at renewal is generally straightforward and penalty-free. When your term ends, you are no longer locked in, so the prepayment restrictions that apply mid-term do not apply at renewal. This means you can shop for a better rate or different product with competing lenders.

If you have a conventional mortgage, a switch to a new lender at renewal often qualifies as an assignment, meaning the new lender takes over the existing registration on title. This can eliminate or greatly reduce legal fees. With a collateral mortgage, the switch requires a new registration and will involve legal costs.

Even a small rate difference on renewal can save thousands of dollars over a term, so it is worth getting quotes from multiple lenders rather than automatically accepting the renewal offer from your existing lender. Lenders send renewal letters weeks before maturity, and you are not obligated to sign them immediately. Many mortgage brokers specialize in renewals and negotiate on your behalf at no cost to you. Make sure your mortgage professional understands whether your existing registration is conventional or collateral before you commit to a lender.