# What is an 'uninsured straight switch' and how does it benefit you?

> Under the OSFI B-20 amendment (effective late 2024), an 'uninsured straight switch' lets you transfer your existing mortgage to a new lender without the stress test.

Category: Regulatory
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/regulatory/what-is-an-uninsured-straight-switch-and-how-does-it-benefit-you

## Answer
| Condition | Requirement |
|---|---|
| **Loan amount** | Cannot increase (no increase allowed, fees must be paid separately) |
| **Amortization** | Cannot extend beyond original schedule |
| **Payment schedule** | Can change (e.g., monthly to bi-weekly) |
| **Lender type** | Must be a federally regulated institution (FRFI) |
| **Property** | Same property — no portability to new home |

This change gives borrowers real leverage to shop for better rates at renewal without stress-test barriers.

## Institutional highlights
- Stress test exemption applies to uninsured straight switches at renewal regardless of down payment, as long as loan amount does not increase and other conditions are met.
- 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.

## Related guide
- https://ratellow.com/guides/stress-test-explained-2026

## 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
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- 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
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1