How does the 'straight switch' exemption benefit you at renewal?
This could save borrowers money by securing a lower rate without re-qualifying under stricter conditions.
Key Points
You may not need to requalify at a higher interest rate when you renew your uninsured mortgage with a new lender.
A 'straight switch' means moving your existing mortgage to a new lender without increasing your loan amount or extending your repayment period.
Lenders will still look at your ability to repay your mortgage.
Your debt payments compared to your income should be at a comfortable level, even if interest rates rise.
Lenders will consider the current and future economy when setting your qualifying interest rate.
Technical Research Verification
Our systems synchronized 3 data points and regulatory frameworks to verify this technical brief.
Related Questions
How does mortgage insurance enable lower down payments?
Mortgage insurance lowers the risk for lenders, allowing them to offer mortgages to borrowers with down payments between 5% and 20%.
How will lenders evaluate my debt service ratios, and what key factors are considered?
Lenders assess your ability to repay the mortgage by calculating your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios.
What property considerations impact my mortgage application?
Lenders carefully assess the property's value and characteristics, directly influencing the loan amount you can secure.
What are Loan-to-Income (LTI) limits and how will they affect institutional mortgage portfolios?
OSFI is introducing Loan-to-Income (LTI) limits to reduce risks from high household debt in institutional mortgage portfolios .