Documents Required for a Mortgage Transfer to a New Lender

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Transferring Your Mortgage to a New Lender: Documents to Prepare

Transferring your mortgage to a new lender at renewal is a more demanding process than simply renewing with your current lender, but it can result in substantial savings. The new lender will treat your file as a new loan application, which means full qualification and more comprehensive documentation. In Quebec, the requirements of the Civil Code (CCQ) add an additional legal layer with the mandatory involvement of a notary for the mortgage deed.

Identification and Status Documents

Two valid pieces of identification, at least one with photo: Canadian passport, driver's licence, permanent resident card, or Quebec health insurance card (accepted by some lenders).
Proof of Canadian residency: if you are not a Canadian citizen, a document confirming your permanent resident status or valid work permit.
Social Insurance Number (SIN): required for credit verification and tax reconciliation.

Income and Employment Documents

Recent employment letter (less than 30 days old): confirming your position, hire date, annual salary, and status (permanent, contract, probation).
Pay stubs: the last two or three pay stubs covering a minimum of 30 days.
Notice of assessment (T1): the last two notices of assessment from CRA for salaried employees, or the last three for self-employed individuals.
Provincial tax returns (Revenu Quebec): the last two or three provincial notices of assessment.
For self-employed individuals: business financial statements, current contracts, T4A or T2125 as applicable.

Property-Related Documents

Current mortgage statement: showing the outstanding balance, interest rate, term maturity date, payment frequency, and payment amount.
Property tax account: the current year's statement issued by your municipality, confirming that payments are up to date and showing the annual tax amount.
Home insurance certificate: proof of adequate coverage listing the new lender as the mortgage creditor.
Professional property appraisal: the new lender will require a recent appraisal conducted by a certified appraiser. Some lenders order and pay for the appraisal directly.
Certificate of location: a recent certificate (generally less than 10 years old, or reflecting the current state of the property) may be requested by the notary.

Additional Financial Documents

Bank statements: statements from the last 90 days of your main accounts, showing the source of your funds and payment habits.
Debt statements: balances and monthly payments for all your debts (credit cards, car loan, line of credit, student loan), needed for calculating GDS and TDS debt service ratios.
Mortgage payment history: some lenders request proof of on-time payments over the last 12 to 24 months.

Transfer Fees in Quebec

Notary fees for the new mortgage deed: In Quebec, the CCQ requires a notary's involvement for any real estate mortgage deed. Expect between $1,000 and $1,800 for the preparation and signing of the new mortgage deed.
Discharge fees for the existing mortgage: Removing your former lender's mortgage from the Quebec Land Registry involves additional notary fees, generally between $400 and $800, including cancellation duties.
Professional appraisal fees: A property appraisal by a certified appraiser costs between $300 and $500. Some lenders order and pay for the appraisal directly, while others charge it to the borrower.
Reimbursements offered by lenders: In a competitive market, many lenders offer partial or full reimbursement of transfer fees (notary, appraisal, discharge). Your mortgage broker knows the current offers and can maximize the reimbursements you are entitled to.

Frequently Asked Questions

What additional documents are required to transfer my mortgage to a new lender?

In addition to standard documents (identification, income, property taxes, insurance), the new lender will require: a complete mortgage statement from your current lender (balance, rate, maturity), a professional property appraisal report, your bank statements for the last 90 days, confirmation of mortgage payment history, and possibly an up-to-date credit report. You will also need to provide the documents necessary for full qualification under the OSFI stress test.

Does the new lender have to fully requalify me?

Yes. Unlike renewing with the same lender, a transfer constitutes a new loan application. The new lender will apply the OSFI stress test, verify your credit score, debt service ratios (GDS and TDS), income, and employment. It is necessary to be able to qualify at the contractual rate plus 2% or the floor rate of 5.25%, whichever is higher.

Who pays the notary fees for a mortgage transfer in Quebec?

The borrower assumes the notary fees, which include preparation of the new mortgage deed and discharge of the existing mortgage. Expect between $1,500 and $2,500 in total. However, many lenders offer partial or full reimbursement of these fees as a transfer incentive. Your AMF-certified mortgage broker can help identify lenders offering the best reimbursement terms.

How long does it take to complete a mortgage transfer?

A mortgage transfer typically takes between 30 and 60 days, depending on the complexity of the file and the new lender's processing speed. This is why it is recommended to begin the process at least 90 to 120 days before your term maturity date, to allow sufficient time.

Is the transfer worthwhile despite the additional fees?

Often, yes. If the new lender offers a significantly lower rate (0.25% or more), the interest savings over a 5-year term can far outweigh the transfer fees. Moreover, with fee reimbursements offered by some lenders, the net cost of the transfer can be minimal. Your mortgage broker will calculate the exact financial advantage for your situation.

Do I need a new property appraisal for a transfer?

Yes, in most cases. The new lender will require a professional appraisal conducted by a certified appraiser to confirm the property's market value and ensure the loan-to-value ratio meets their criteria. Appraisal fees range from $300 to $500 in Quebec, but some lenders may reimburse them.