Hybrid Mortgages With Free Switches
A client asked us today if we knew of any lenders who allow “free switches” into a hybrid mortgage. (A hybrid is a mortgage that’s part fixed and part variable, or part short-term and part long-term.)
We composed the list below and thought it might be useful to others. It shows the primary lenders with hybrid mortgages and indicates which of them offer free switches.
- National Bank (has "free switches" into hybrids)
- ATB Financial (has "free switches" into hybrids)
- RBC (has "free switches" into hybrids)
- Scotiabank (refinances only – legal fees apply)
- Laurentian Bank (refinances only – legal fees apply)
- Merix Financial (refinances only – legal fees apply)
- Canadiana Financial (refinances only – legal fees apply)
- HSBC (refinances only – legal fees apply)
If anyone knows of other major lenders offering free switches into a hybrid mortgage, send us a comment below and we’ll add them to the list.
______________________________________________________
Side Notes:
- “Free switch” means the new lender will generally cover legal and appraisal costs. That’s opposed to a refinance, where legal fees (and often appraisal fees) apply. The lender losing the mortgage will typically charge the borrower a discharge fee in either case.
- Free switches usually apply only to straight transfers (where there’s no increase to mortgage amount or amortization).
- If your current mortgage has a line of credit attached, you must refinance when changing lenders. Free switches do not apply.














