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Hybrid Mortgages With Free Switches

Hybrid-Mortgage 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.