# How does the 'straight switch' exemption benefit you at renewal?

> The 'straight switch' exemption lets uninsured mortgage borrowers move their mortgage to a new federally regulated lender (FRFI) at renewal without needing to pass the Minimum Qualifying Rate (MQR) .

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/how-does-the-straight-switch-exemption-benefit-you-at-renewal

## Answer
The 'straight switch' exemption lets uninsured mortgage borrowers move their mortgage to a new federally regulated lender (FRFI) at renewal without needing to pass the Minimum Qualifying Rate (MQR) . This could save borrowers money by securing a lower rate without re-qualifying under stricter conditions.

## Institutional highlights
- 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.

## Related guide
- https://ratellow.com/guides/2024-2026-canadian-mortgage-reforms-guide

## Sources
- OSFI exempts uninsured mortgage straight switches from the prescribed MQR and implements portfolio LTI limits — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/osfi-exempts-uninsured-mortgage-straight-switches-prescribed-mqr-implements-portfolio-lti-limits
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0