Refinancing or switching
Switching Lenders
For homeowners whose current lender may not be the best fit for the next term: at renewal you are free to move, often at no cost, but a mid-term switch can carry a prepayment penalty.
What we cover
At renewal, you are free to move your mortgage to a different lender, often at no cost. A switch can make sense if another lender offers a lower rate, better terms, or features your current lender does not provide (like a home equity line of credit or more flexible prepayment options).
Mid-term switches are also possible, but they may involve prepayment penalties. We break down the numbers so you can see whether the savings outweigh the cost.
- Compare your current rate/terms against available alternatives
- Understand transfer vs. refinance, and which applies to your situation
- Calculate any prepayment penalties if switching mid-term
- Review qualification requirements for the new lender
- Coordinate the transition so there is no gap in your mortgage
What to prepare
Bring what you have. We can work with approximate numbers and fill in the rest once we access your mortgage statement.
- Current lender name and renewal/maturity date
- Mortgage balance estimate
- Current interest rate and term
- What you want from your next lender (lower rate, better features, HELOC access)
Good to know: At renewal, most lender switches are free. The new lender often covers legal and appraisal costs on a straight transfer.
Documents you will need
The documents required depend on your mortgage type. This is a general guide. We confirm your specific list once we start working together.
- Current mortgage statement and discharge or transfer details
- Property tax bill
- Employment verification
Self-employed? You may also need Notices of Assessment (2 years), T1 Generals, and business financial statements.
How it works
Step 1: Review
We assess your current mortgage and the renewal offer (if any) from your existing lender.
Step 2: Compare
We present alternatives from other lenders side by side: rate, features, and total cost of switching.
Step 3: Switch
If switching makes sense, we handle the transfer application and coordinate between both lenders so you do not miss a payment.
Questions people ask about switching lenders
Is there a cost to work with The Taylor Team?
For most transactions there is no cost to you. Lenders pay us when your mortgage closes. In some lending situations a broker fee may apply, and it is disclosed and agreed in writing before any commitment. You will never be surprised by a fee.
Do I need to renew with my current lender?
No. At renewal you are free to shop around and switch to a different lender, often at no cost. Most lenders send a renewal offer about 21 days before maturity, but starting 120 days early gives you time to compare and negotiate. We can review your renewal offer against current options.
What does a mortgage broker do that a bank does not?
A bank offers its own products. We are mortgage agents at a licensed brokerage, so we work with many different lenders (banks, credit unions and alternative lenders) and compare rates, terms and features across them for your situation. In most cases the lender pays us, not you.
What happens if I break my mortgage early?
Breaking a mortgage before the end of your term usually triggers a prepayment penalty: either three months of interest or an interest rate differential (IRD), whichever is higher. The cost varies widely by lender and product. We can estimate your penalty before you decide.
Thinking about switching lenders?
Share your details and we will show you what is available.