What is a 'straight switch,' and how does it impact refinancing at renewal?
OSFI provides certain flexibilities for straight switches.
Key Points
This only applies if you have a down payment of 20% or more.
To qualify, you need to keep your loan amount and payment schedule the same when you renew your mortgage.
Lenders will still review your ability to repay the mortgage, even if you don't need to pass the full stress test.
Primary sources
Primary sources cited by the Ratellow Research Team. Editorial standards · Correction policy
Related Questions
How do GDS and TDS ratios affect my refinancing options?
GDS (Gross Debt Service) and TDS (Total Debt Service) ratios are critical affordability indicators that financial institutions use to determine your eligibility for refinancing.
What is the Loan-to-Value (LTV) ratio, and how does it impact my ability to refinance?
The Loan-to-Value (LTV) ratio plays a critical role in the refinancing process.
How does OSFI's Guideline B-20 affect refinancing?
OSFI's Guideline B-20 establishes the benchmark for residential mortgage underwriting practices that federally regulated financial institutions (FRFIs) must adhere to.
What Loan-to-Value (LTV) Ratio is Right for Me?
The Loan-to-Value (LTV) ratio is a key metric lenders use to gauge risk.