Changing lenders and borrowing more are different decisions. Start with the purpose, then compare the payment, costs and cash remaining.
Start with what you want to change
A switch usually moves an existing mortgage to a different lender. A refinance changes the borrowing arrangement, often to release equity, repay debts or change the repayment schedule. A new lender alone does not tell you which route fits: the requested amount and remaining amortization matter too.
Write down three figures before comparing offers: the mortgage payout, the proposed new loan and the remaining amortization. Then list any additional money you need. This makes it easier to separate a rate comparison from a plan to borrow more.
A straight switch has specific conditions
OSFI does not prescribe its minimum qualifying rate for an eligible uninsured straight switch at renewal between federally regulated lenders. Its criteria cover an existing stand-alone, amortizing, non-readvanceable mortgage, with no extension of remaining contractual amortization and no equity takeout. Up to $3,000 may be added for related transaction costs. The receiving lender still assesses the borrower and sets its underwriting requirements.
This is not a blanket rule that every transfer avoids qualification. Insured transfers and other lender arrangements need their own eligibility review. Read OSFI's straight-switch criteria before choosing the qualifying setting for the actual deal.
Follow the refinance money
The new mortgage amount is not the amount the borrower receives. The current mortgage, costs and selected debt payouts must be accounted for first.
- New mortgage: $600,000
- Existing mortgage payout: $450,000
- Costs and penalties: $5,000
- Debts paid from mortgage proceeds: $25,000
Cash remaining: $600,000 − $450,000 − $5,000 − $25,000 = $120,000.
This is an illustrative calculation, not a borrowing approval. If a debt is paid using the borrower's separate savings, it belongs in the separate funding plan; deducting it again from the mortgage would understate the cash remaining.
Equity is only part of the decision
Home equity is the property's value less borrowing secured against it. FCAC explains that borrowing against equity can involve appraisal, legal, title and other costs. Available equity is therefore not the same as spendable proceeds. FCAC's home-equity guide explains the main products and costs.
In the example above, a $600,000 loan against an $800,000 property is 75% loan-to-value. That arithmetic does not confirm the property's accepted value, the lender's limit or the borrower's ability to service the loan. Compare those checks separately.
Compare it in MyMortgageMate
- Open Properties & Results and choose Refinance, Switch or Transfer.
- Enter the property value, requested mortgage, existing payout and costs.
- Set the contract rate, remaining or proposed amortization, and qualifying settings appropriate to the lender and transaction.
- For each liability, choose whether it remains, is paid from proceeds, or is paid separately before funding.
- Compare the scenarios and review Mortgage Payout Balance before printing the summary.
A lower monthly payment can result from a longer repayment period as well as a lower rate. Compare both the payment and amortization, and confirm the final terms with the lender.
Put the figures into a scenario
Use the appropriate assumptions, compare the results and save a summary for your file.
Open the Residential Calculator →Sources and review
References checked September 22, 2026. Examples are illustrative; confirm the lender, insurer and program requirements for your situation.