Getting a Better Mortgage
The lowest advertised rate and the best mortgage are not always the same product. Prepayment privileges, penalty calculations and portability decide what your mortgage actually costs you over five years.
The short answer
Switching lenders moves your existing balance to a new lender, usually at renewal, often with the new lender covering legal and appraisal costs. It's different from a refinance because the balance doesn't change. Beyond rate, compare prepayment privileges, how the penalty is calculated, and whether the mortgage is portable.
What to compare besides rate
- Penalty calculation method — some lenders use a posted-rate IRD that can be several times larger than others.
- Prepayment privileges — how much extra you can pay each year and when.
- Portability — can you take the mortgage with you if you move mid-term?
- Whether the mortgage is collateral-charged, which can make a future switch more expensive.
- Whether the low rate is a restricted 'no-frills' product that can't be broken or ported.
Common questions
Does switching lenders cost anything?
At renewal, a straight switch is often covered by the new lender or costs a few hundred dollars. Mid-term, you're breaking a contract, which means a prepayment penalty.
Is a broker's rate different from my bank's?
Brokers access lenders including monoline lenders that don't have branches and often price competitively. The value is as much in matching the product features to your plans as the rate itself.
Your Estimate
- Mortgage amount
- $647,640
- Payment (Monthly (12/yr))
- $3,616.99
- Monthly equivalent
- $3,616.99
- Total monthly housing cost
- $4,086.99
- Default insurance premium added
- $17,640
- Stress-test payment at 6.59%
- $4,373.44
- GDS / TDS at qualifying rate
- 41.5% / 47.1%
- Total interest over amortization
- $437,456
- Estimated closing costs (~1.5%)
- $10,500
These ratios are above typical insured limits — some lenders allow more, and structure matters.
Insured mortgages are stress-tested at the greater of your rate plus 2% or 5.25%. Half of condo fees are included in the ratio calculation, as most lenders do.
Important: This is an illustration, not a mortgage approval or financial recommendation. Actual results depend on interest rates, penalties, lender guidelines, qualification and your full financial situation.
I shop your mortgage across 30+ lenders — banks, monolines and private
One application, compared across lenders. You are not stuck with your bank's answer.
Start the conversation
Tell me a little about your situation and I'll come back with the honest version — including whether waiting is the smarter move.
Step 1 of 3
Get your personalised plan
Three quick steps. No credit check, no application, no obligation — just a clear read on your options.
Not sure which option fits your situation?
Bring your numbers — mortgage balance, balances you're carrying, and what's stressing you out. I'll walk you through what's realistic, including when doing nothing is the better call.