Mortgage switch - exact steps and process

As far as I know, you go to a broker or any bank and start a mortgage application... They will let you know what documents they need and take care of the rest.

Pretty sure the lender can request the payout from their end. Nothing really for you to do

1. There's a specific date when the switch happens. How do I determine the precise outstanding principal on that date? I believe asking the current lender is the best option? Should that amount be the requested amount with the new lender?
Your lawyer would request a payout statement as of the date of closing, it will include all your outstanding funds plus penalties, discharge fees etc

2. For my situation, its a early termination and so there's a penalty involved. I have been told that this can be added to the new mortgage amount or can be paid directly to the current lender. Is that correct?
Varies from lender to lender. If there is equity in the home the refinance amount may be higher than the current mortgage/penalty payout amount.

3. It's a switch and not a refinance. Do I need to have a lawyer or notary involved? Neither mortgages are collateral charges if that matters
If you are going to a new lender it is a refinance, you'll need a lawyer. You are essentially registering a new mortgage and discharging the previous one.

4. Should I be requesting a mortgage payout statement from the current lender? Looks like that may be required based on my Google searches so far
The lawyer requests the payout/discharge statement. Your broker may ask for your current statement or the annual statement you received in January.