Renewal / Switch vs. Refinance – What’s the Difference?
Renewal (same lender) / Switch or Transfer (new lender)
You’re not adding new money and not changing key terms (amount, amortization,
borrowers).
Many lenders allow a tiny allowance (often up to ~$3,000) to cover fees/interest without
treating it as a refinance (varies by lender).
Cost: typically $0 to you on a straight switch/transfer. The new lender often covers
standard legal/transfer costs.
Refinance
You’re making a material change, such as:
o Increasing the mortgage amount (beyond the small allowance)
o Extending or resetting amortization
o Adding/removing a borrower or pulling out equity for renovations/debt
consolidation
A new mortgage is registered on title.
Cost: about $1,500 total (estimate; covers legal/registration, appraisal, discharge—varies
by province and file). Some lenders let you roll costs into the mortgage.
Rule of thumb
No new money & no major changes? → Renewal (same lender) or Switch/Transfer
(new lender).
New money or major changes? → Refinance.
Have questions or want me to check your specific lender’s rules?
Please feel free to text, call or email me anytime with any questions.
