# What is a 'straight switch,' and how does it impact refinancing at renewal?

> A "straight switch" refers to the process of transferring an existing uninsured mortgage to a new institution when it's up for renewal, without increasing the remaining amortization period or the loan amount.

Category: Refinance
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/refinance/what-is-a-straight-switch-and-how-does-it-impact-refinancing-at-renewal

## Answer
A "straight switch" refers to the process of transferring an existing uninsured mortgage to a new institution when it's up for renewal, without increasing the remaining amortization period or the loan amount. OSFI provides certain flexibilities for straight switches.

## Institutional highlights
- You might not need to pass the mortgage stress test when you switch lenders at your mortgage renewal.
- 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.

## Related guide
- https://ratellow.com/guides/refinance-break-even

## Sources
- Debt service coverage — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.3.3
- LTV Ratio Frameworks — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.4.3
- 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