By Leanne Mollica
Mortgage Broker | Mortgage Architects – Team Borle
Founder, My Mortgage Strategy
Serving Salmon Arm, the Shuswap, and British Columbia
Why these mortgage terms are not interchangeable
When it comes to mortgages, a lot of confusion starts with a few small words.
Renew. Switch. Refinance. Blend.
They’re often used interchangeably in conversations with lenders, friends, and even online articles — but they do not mean the same thing. And choosing the wrong one (or assuming they’re interchangeable) can lead to unnecessary costs, missed opportunities, or a mortgage that no longer fits your life.
Let’s break this down clearly.
Renew
A renewal means staying with your current lender at the end of your mortgage term.
This is often the easiest option — your lender sends a renewal offer, you sign, and you move on. In many cases, there’s no penalty and no re-qualification required.
That convenience, however, is exactly why renewals deserve a closer look. Renewal offers are not automatically the most competitive, and they don’t always reflect changes in your financial situation or goals.
Simple? Yes.
Automatically best? Not always.
Switch
A switch means moving your mortgage to a new lender at renewal without increasing the mortgage balance.
This is one of the most underused opportunities in mortgage planning. Switching at renewal can allow you to improve your rate, upgrade your mortgage terms, or gain more flexibility — often without paying a penalty.
In some cases, a switch may also allow for a different mortgage structure, such as adding a HELOC, though this is subject to lender policy, equity, and qualification. Fees can vary depending on how the mortgage is registered, and while many conventional switches include lender-paid legal and discharge costs, some out-of-pocket expenses may still apply.
Same mortgage balance — different lender, different rules.
Refinance
A refinance means changing the amount or structure of your mortgage.
This could include accessing equity, consolidating debt, changing amortization, or adding or removing borrowers. Refinancing is a powerful tool — but it’s not a small change.
Refinances typically require full qualification and may involve legal and appraisal costs. If done mid-term, they usually trigger a mortgage penalty unless completed at renewal.
Strategic and useful — but not casual.
Blend
A blend combines your existing mortgage rate with a new rate.
Blends are often misunderstood and sometimes oversimplified. Not all lenders offer them, rules vary significantly, and they’re not always the most cost-effective option compared to other strategies.
They can be helpful in specific scenarios — but they require careful review to understand the true cost and long-term impact.
Possible — but never automatic.
Why this matters
On the surface, these options can sound similar. In reality, they lead to very different outcomes.
This is how homeowners end up with:
- surprise penalties
- missed opportunities at renewal
- mortgages that no longer support their goals
The difference isn’t just the rate — it’s the strategy.
Strategy first
If your renewal is coming up — or if life has changed — don’t let a lender letter or a quick assumption decide your mortgage path.
A short review can provide clarity on:
- what options are available
- what costs actually apply
- and which strategy truly fits your situation
Because renew, switch, refinance, and blend are not interchangeable — and understanding the difference is where smart mortgage planning begins.