# How does the new OSFI guidance affect mortgage switching for you?

> The latest OSFI guidance simplifies switching lenders at renewal for borrowers with existing uninsured mortgages.

Category: Regulatory
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/regulatory/how-does-the-new-osfi-guidance-affect-mortgage-switching-for-you

## Answer
The latest OSFI guidance simplifies switching lenders at renewal for borrowers with existing uninsured mortgages. Previously, even if their financial picture remained stable, borrowers often had to requalify under the mortgage stress test. Removing the Minimum Qualifying Rate (MQR) for 'straight switches' reduces hurdles and fosters competition. Remember: lenders still need to follow sound underwriting principles, which means that they will still need information from you to make a fair assessment of their ability to repay their debts.

## Institutional highlights
- You might not need to pass the mortgage stress test when you renew with a new lender.
- This is only if you're simply moving your existing mortgage, without increasing the amount you borrow or extending your repayment period.
- Lenders still need to make sure you can comfortably afford your mortgage.
- Your lender will look at your income and debts to ensure you can handle your payments, even if interest rates rise.
- The interest rate you qualify for will depend on how much risk your lender is willing to take.

## Related guide
- https://ratellow.com/guides/osfi-stress-test-explained

## 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
- Updates After Approval — https://www.sagen.ca/ups/underwriting-documentation/#updates-after-approval
- Mortgage Insurance Prepay and Re-Advance Policy — https://www.sagen.ca/ups/underwriting-documentation/#mortgage-insurance-prepay-and-re-advance-policy-638f55989d20b
- Model validation and stress testing — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.3