What is an 'uninsured straight switch' and how does it benefit you?
Key Points
Mortgage amount cannot increase; payment schedule can change (e.g., monthly to bi-weekly).
Lenders will still check to make sure you can comfortably afford your mortgage payments.
They'll look at your income, debts, and credit score to ensure you can handle your mortgage, even if interest rates rise.
These rules help protect the financial system while still allowing you to shop around for the best mortgage interest rate at renewal.
Primary sources
Primary sources cited by the Ratellow Research Team. Editorial standards · Correction policy
Related Questions
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.
What documentation is typically required for a mortgage application, and how might this differ for a 'straight switch'?
While specific requirements can vary slightly among lenders, the standard documentation confirms income, credit history, and property details.
What are the Loan-to-Income (LTI) limits, and how do they impact lenders?
OSFI is introducing Loan-to-Income (LTI) limits on the uninsured mortgage portfolios of federally regulated financial institutions (FRFIs).
How does 'stress testing' affect the stability of financial institutions?
Stress testing evaluates how a financial institution's mortgage portfolio would fare under tough economic times.