How to switch banks in Canada without missing a payment
Most people do not stay with a bank because they love it. They stay because moving feels like a week of phone calls and a risk of a bounced payment. It does not have to be. Here is the order that keeps every payment landing, what changes for credit cards, loans, mortgages and registered plans, and a planner that puts dates on each step.
On this page
Switch planner: dates, buffer and the fee you save
Put a date on every step
| By | Step |
|---|
A suggested schedule, not a rule. Payers update banking details on their own timelines, so confirm each change has taken effect on a statement. The buffer is one month of the debits you entered; FCAC says to make sure the new account can cover payments before they start. Fees are the amounts you enter from each bank's fee schedule.
Step 1: list everything that moves
The switch fails on the payment you forgot. FCAC suggests making a list of every product and service at your current institution, including automated transactions, before you start. Look in:
- Your transactions for the last few months or the past year, to catch pre-authorized debits that only come once a year, such as insurance, memberships or a domain renewal.
- Every direct deposit: pay from work, pension and government benefits.
- Your bills and budget, so nothing is missed.
- Online banking, statements and older documents, plus a list of products from the bank itself.
- Your Equifax and TransUnion credit reports, which can show accounts you forgot you had.
Write each one down with its date and amount. That list is the whole project. If you find a subscription you no longer want while you are at it, cancel it rather than move it; see how to find and cancel forgotten subscriptions.
Steps 2 to 6 for chequing and savings
- Open the new account. If you meet certain conditions, banks, federal credit unions and authorized foreign banks must open a deposit account for you. Read the agreement and keep a copy. Before signing, check the monthly fee and what it includes; our guides to no-fee bank accounts and the $4 low-cost account show what to compare.
- Move your money. FCAC lists wire transfers, Interac e-Transfers, linked accounts, electronic funds transfers and bank drafts. Ask which works best between your two institutions, and watch your e-Transfer limits on larger amounts.
- Update direct deposits and pre-authorized debits. Give your employer, government payers and every company that debits you the new banking information. Ask your new bank whether it can transfer pre-authorized debits for you; if not, set each one up on the new account and cancel it on the old one. Fund the new account first so the first debit does not bounce.
- Review both accounts. Confirm you can access the new account, have your new debit card, see direct deposits arriving, and that every debit has moved or been cancelled. Request stop payments on any cheques you wrote from the old account that have not cleared.
- Wait before closing. FCAC: do not close the old account too soon. You may want to keep it open for several months with enough money to cover payments, because some payers take a cycle or two to switch.
- Close the old account. Once every transaction is complete, ask the old bank to close it. Check your agreement for a closing fee. The full closing checklist is in how to close a bank account.
Government payments
The Canada Revenue Agency lets individuals update direct deposit for refunds and benefits online in My Account or through their Canadian bank or credit union. Canada.ca says direct deposit for Employment Insurance, the Canada Pension Plan and Old Age Security is changed with Service Canada, while CRA programs such as the Canada child benefit, the Canada Groceries and Essentials Benefit and the Ontario trillium benefit are changed with the CRA. That is two updates, so put both on your list.
Worked example: three deposits, six debits
Priya has pay, the Canada Child Benefit and a monthly side-gig deposit coming into an account that costs $16.95 a month. Six pre-authorized debits leave it each month, totalling $1,450. She opens a no-monthly-fee account on November 2.
- Buffer: she moves $1,450 into the new account before the first debit is due, one month of debits.
- Overlap: she keeps the old account open for 3 months, paying 3 x $16.95 = $50.85 in old fees while everything settles.
- Saving: after that, the switch saves 12 x $16.95 = $203.40 a year, so the overlap costs about three months of the saving.
The planner above starts with these numbers. Change them to yours. The point is not the exact date; it is that each step has one.
Credit cards, loans and lines of credit
Credit cards do not move; you apply for a new card and cancel the old one. FCAC's order: qualify for the new card, list the automated charges on the old card, decide how you will pay the balance, set up the charges on the new card, then cancel. A balance transfer usually has a fee and can take several weeks to appear. Some charges may still land on a card after you cancel it, and cutting up the card does not cancel it; you must contact the issuer.
Loans and lines of credit often cannot be transferred. In most cases you apply for a new one to pay off the old one, and you must qualify. Ask about fees for paying off early. If you are consolidating several debts, FCAC suggests asking the new institution about debt consolidation.
Mortgages and registered plans
A mortgage cannot be transferred to another lender. To switch you break your current contract, or wait for renewal, and qualify with the new lender. Possible costs include a prepayment penalty, discharge fees, setup fees with the new lender that may include registration and assignment fees, an appraisal and administration fees. Switching at renewal usually avoids the penalty; see mortgage renewal and mortgage penalties.
TFSAs, RRSPs, RRIFs, RDSPs and RESPs have their own transfer process with signed forms. Do not withdraw and redeposit: use a direct transfer so the money stays inside the plan. Ask the old provider whether it charges a transfer-out fee; some new providers reimburse it, with conditions. FCAC notes federally regulated institutions must transfer registered plans within set timelines. Our TFSA withdrawal rule guide explains why a withdrawal is not the same as a transfer.
After the switch: two checks
- Credit reports. Check Equifax and TransUnion to confirm the old institution closed your accounts. FCAC says they usually take 30 to 90 days to update.
- Online banking. When you have nothing left at the old institution, cancel your online banking access by phone, online or at a branch.
You can also ask the old institution for a list of the accounts you closed and the products you cancelled. Keep it with your records.
Options people compare
| Option | Upside | Trade-off |
|---|---|---|
| Move everything at once | One project, one cleanup | More moving parts in the same month |
| Move chequing first, the rest later | Daily banking fees stop soonest | Two institutions for a while |
| Keep a small account at the old bank | A safety net for stray debits | Watch for monthly or inactivity fees |
| Negotiate with your current bank | No switch at all | A lower fee may not include what you need |
These are options, not recommendations. FCAC's Account Comparison Tool lets you compare account fees and features side by side, and CDIC coverage is worth checking at the new institution: see how CDIC deposit insurance works.
Questions people ask
How do I switch banks in Canada?
FCAC sets out six steps: identify your automated transactions, open the new account, transfer your money, update direct deposits and pre-authorized debits, review both accounts, then close the old one once every transaction is complete.
How long should I keep my old bank account open?
FCAC says not to close it too soon and suggests you may want to keep it open for several months with enough money to cover payments, so late-moving payers and annual debits do not bounce.
Can my new bank move my pre-authorized debits?
Ask. FCAC says some institutions can transfer pre-authorized debits for you. If yours cannot, set each debit up on the new account and cancel it on the old one.
How do I change my direct deposit with the CRA?
The CRA lets individuals sign up for or update direct deposit online in My Account or through their Canadian bank or credit union. Direct deposit for EI, CPP and OAS is changed with Service Canada, separately.
Can I transfer my mortgage to another bank?
No. FCAC says you cannot transfer an existing mortgage; you must break the contract or switch at renewal and qualify with the new lender. Costs can include a prepayment penalty, discharge, registration or assignment fees, an appraisal and administration fees.
How do I move my TFSA or RRSP to a new bank?
Use the registered plan transfer process with signed forms, not a withdrawal. Ask about transfer-out fees; some providers reimburse them. FCAC says federally regulated institutions must transfer registered plans within set timelines.
Does switching banks affect my credit score?
Moving a chequing or savings account is not a credit product. Applying for a new credit card or loan is. After the switch, FCAC suggests checking your credit reports, which usually take 30 to 90 days to show closed accounts.
Looni is being built to read your statements and list every recurring deposit and debit, including the once-a-year ones, so your switch list writes itself. Read-only, no advice.
Sources
Financial Consumer Agency of Canada, Transferring your financial products and services to another financial institution (modified October 23, 2026: planning, review what you have, six steps for deposit accounts, keep old accounts open for several months, credit cards, loans and lines of credit, mortgages cannot be transferred and switching costs, registered plans and set timelines, credit reports update in 30 to 90 days, cancel online banking) and Opening a bank account. Canada Revenue Agency, Direct deposit: payments the CRA sends you (My Account or your Canadian bank or credit union). Employment and Social Development Canada, Benefits payment dates (which payments are updated with Service Canada and which with the CRA).