Why More Canadians Are Switching Mortgage Lenders in 2025

As 2025 unfolds, more Canadian homeowners are choosing to switch mortgage lenders—especially in markets like Abbotsford, Surrey, and Edmonton, where rising home values and competitive mortgage products are creating new opportunities for savings.

But why the shift? What makes this year different for so many Canadians exploring mortgage transfers?

Let’s break down what’s driving this trend—and how it could benefit you.

What’s Fueling the Rise in Mortgage Transfers?

1. Rate Shopping in a Cooling Market

With the Bank of Canada introducing policy rate cuts, lenders are aggressively pricing new mortgage offerings. However, existing borrowers may find themselves automatically renewed at less competitive rates. That’s why more Canadians are comparing—and switching. Partnering with a trusted mortgage broker in Surrey or Abbotsford can unlock access to these lower rates, often not publicly advertised.

2. More Renewals, Higher Stakes

A record number of mortgages are up for renewal in 2025. Many homeowners, faced with payment shock due to previous rate hikes, are re-evaluating their options. Transferring to a new lender during renewal—often at no legal cost—is becoming a popular way to regain financial control.

3. Smarter Products with Better Features

New mortgage offerings go beyond just rate. Flexible prepayment options, long-term amortization, and home equity solutions are now in demand. Brokers like Sandhu & Sran Mortgages specialize in helping clients compare features and tailor transfers to match their future plans.

Pros and Cons of Switching Lenders

✔ Benefits of Mortgage Transfers:

• Save on interest with a lower rate

• Access more flexible features (e.g., prepayment, portability)

• Consolidate debt through a strategic refinance

✖ Things to Watch For:

• Penalties if breaking mid-term

• Legal or appraisal costs if outside the renewal window

• Stress test requirements still apply

For guidance on managing these trade-offs, working with a mortgage transfer specialist in BC ensures you don’t leave money on the table.

Surrey Success Story: Transferring for Smart Savings

Take a Surrey homeowner who recently transferred their $620,000 mortgage at renewal. With the help of a broker, they moved from a 5.39% rate to 4.69%, saving over $7,200 in interest during their 5-year term. No penalty, no legal fee—just strategic timing.

When to Start the Transfer Process

If your mortgage renews in the next 4–6 months, this is the ideal time to explore other lenders. Many brokers, including Sandhu & Sran Mortgages in Abbotsford and Edmonton, offer early rate holds and pre-approval options to lock in competitive deals while you prepare.

Considering switching mid-term? Use tools like their mortgage refinance calculator to compare savings after penalties.

How Brokers Simplify the Process

Navigating a mortgage transfer isn’t just about paperwork—it’s about insight. Brokers do the heavy lifting:

• Comparing rates from dozens of lenders

• Reviewing penalty scenarios vs. long-term savings

• Matching lenders to unique borrower needs (e.g., self-employed, new Canadians)

Whether you're exploring a first-time homebuyer mortgage in Surrey or evaluating your options for private mortgage renewal, a seasoned broker acts as your advocate—not your lender’s.

Final Thought: Don’t Accept Renewal Offers Blindly

With 2025 shaping up to be one of the most borrower-friendly markets in recent years, mortgage transfers are a smart financial tool—not just a formality.

Before you accept your lender’s renewal offer, explore your options. You might be surprised at what a better rate—and better service—can do for your financial future.

Need help navigating your mortgage switch in BC or Alberta? Start with Sandhu & Sran Mortgages, where personal guidance meets competitive solutions.