# Mortgage Renewal 2026–27: Switch, Stay, or Refinance > Stay is untested. Uninsured straight switch untested since 21 Nov 2024. Refinance always tested. Category: 2026 Renewal Strategy Author: Ratellow Research Team Published: 2026-08-29T20:00:00.000Z Source: https://ratellow.com/blog/renewal-2026-27-switch-stay-refinance Stay with your current lender and you are not requalified under the prescribed MQR. An **uninsured straight switch** — same balance, same remaining amortization, federally regulated lender to federally regulated lender — has been exempt since **21 November 2024**. A **refinance** (new money, longer amortization, or a deal the exemption does not cover) is always tested. The cluster walkthrough is [switch vs stay](/guides/renewal-switch-vs-stay). What follows is the 2026–27 decision order: payment shock first, then whether a switch is still a switch, then whether a refinance is worth triggering the test. ## TL;DR - **Stay:** no prescribed stress test. The risk is signing the renewal letter's posted-style rate. - **Straight switch:** uninsured exemption **21 Nov 2024**; portfolio-insured low-ratio from **16 Dec 2024**; no extra principal (uninsured: none; portfolio-insured: at most **$3,000** of costs). The receiving lender may still run its own B-20 test. - **Refinance:** full MQR, every time. Link the [2026 stress-test rules](/blog/stress-test-at-renewal-2026-rules) only for this branch. - Worked file: **$470,980** remaining, **20 years** left, **2.19% → 4.14%** is **$2,880/month**, **+$457**. ## Payment shock is the first number A 2020–21 5-year coupon rolling into today's 5-year fixed is a cash-flow event before it is a product event. On the renewal calculator's reference file: | | Rate | Monthly P&I | |---|---|---| | Expiring term | 2.19% | $2,423 | | 5-year fixed (24 Aug 2026) | 4.14% | **$2,880** | | Change | — | **+$457** | That **+$457** is what you are negotiating against — not a slogan about "the renewal wave." ## Stay when the hold is real and the letter is not Same-lender renewal is not a new origination. You can stay without the MQR. You should not stay *because* you are afraid of the MQR. Stay if the **rate hold** you locked 120–180 days out is still the best written number on the table after you have one outside quote. FCAC's 21-day renewal information rules mean you should see terms in time to shop. The letter is a starting offer. Treat it as one. ## Straight-switch when the other lender is cheaper on the same mortgage A switch is still a switch only if the **loan amount and remaining amortization do not increase**. Cross that line and you have refinanced. Collateral-charge mortgages can make a later equity take-out easier *at the same lender* and messier if you wanted a clean title transfer — ask which security you have before you assume a switch is paperwork-light. Uninsured straight switches have been MQR-exempt since **21 November 2024**. That is the current rule, including on the [switch vs stay guide](/guides/renewal-switch-vs-stay). Lenders may still apply their own stressed debt-service test. Ask before you apply. Process notes: [renewal switch process](/guides/renewal-switch-process). Penalty math if you are not yet at maturity: three months' interest versus IRD — do not switch mid-term without pricing the break. ## Refinance only when new money or a longer amortization is the point Take-out, debt consolidation, or stretching amortization past the existing schedule is a refinance. Then you qualify at **contract + 2%** (floor 5.25%). On a 4.14% contract that is **6.14%**. That is the only branch where you should open the [stress test calculator](/mortgages/stress-test-calculator). If the extra cash or the lower payment from a longer amort does not clear that hurdle, wait for a straight switch or a same-lender stay. Rate-hold window: lock **120–180 days** out so you are not negotiating inside the last three weeks. Details: [120–180 day rate strategy](/guides/renewal-180-day-window). ## Frequently asked questions ### Do I have to pass the stress test to switch lenders? Not for an uninsured **straight switch** since **21 November 2024**, provided balance and remaining amortization do not rise. The new lender can still apply its own underwriting. See [how the stress test affects 2026 renewal options](/faqs/renewal/how-does-the-stress-test-affect-my-2026-renewal-options). ### When does a switch become a refinance? New principal beyond the exemption, a longer amortization, or equity take-out. Then it is a refinance and the MQR applies. [What a straight switch is](/faqs/refinance/what-is-a-straight-switch-and-how-does-it-impact-refinancing-at-renewal). ### Should I stay or switch? Stay if your lender matches a written outside number without changing the mortgage. Switch if they will not, and the new file is still a straight switch. Framework: [switch vs stay](/guides/renewal-switch-vs-stay) and [switching versus negotiating](/faqs/renewal/should-i-consider-switching-lenders-or-negotiate-with-my-current-lender). ### When does a refinance beat waiting until renewal? When the use of the extra dollars (or the cash-flow from a longer amort) exceeds the cost of qualifying at contract-plus-two *and* any penalty if you break early. If you can wait to maturity, a stay or straight switch is usually the cheaper qualification path. ## Sources - OSFI exempts uninsured mortgage straight switches from the prescribed MQR — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/osfi-exempts-uninsured-mortgage-straight-switches-prescribed-mqr-implements-portfolio-lti-limits - Straight Switches and portfolio insurance — https://www.canada.ca/en/department-finance/news/2024/12/straight-switches-and-portfolio-insurance.html - Renewal: switch vs stay — https://ratellow.com/guides/renewal-switch-vs-stay - Renewing your mortgage — https://www.canada.ca/en/financial-consumer-agency/services/mortgages/renewing-your-mortgage.html - Canadian mortgage rates — https://ratellow.com/mortgages/rates