Signs you may be ready
If your credit score has improved, your income situation has stabilized, or enough time has passed since a past credit event like a consumer proposal or late payments, you may now meet standard bank lending guidelines that were out of reach when you first took the private mortgage.
Steps to prepare for the switch
Start by pulling your credit report to see where you stand, then gather updated income documents. Speaking with a mortgage broker a few months before your private term matures gives time to address any remaining issues before applying.
- Check your credit report for accuracy
- Gather two years of income documents
- Get a property appraisal if needed
Timing around your private term
Ideally the switch happens right around the maturity date of your private mortgage to avoid renewal fees on one side or prepayment charges on the other. Starting the bank application process 60 to 90 days before maturity gives enough runway for underwriting.
What if you are not quite ready
If you are close but not quite qualifying for a bank mortgage, a shorter private renewal or a move to an alternative lender with lower cost than a private mortgage can serve as a middle step while you finish rebuilding your file.
Frequently asked questions
- How long does it typically take to go from private to bank financing?
- It varies widely, but many borrowers make the switch within one to two years once credit and income documentation are back in good standing.
- Will my private mortgage history hurt my bank application?
- Not directly, as long as payments were made on time, since banks focus mainly on your current credit report and income rather than the type of mortgage you previously held.
- Should I use a mortgage broker to switch to a bank mortgage?
- A broker can compare multiple bank and lender options at once and help identify which one is most likely to approve your specific situation.