# Will you still need to pass a 'stress test' when switching lenders?

> Here's when the stress test applies and when it doesn't in 2026:

Category: Regulatory
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/regulatory/will-you-still-need-to-pass-a-stress-test-when-switching-lenders

## Answer
| Transaction Type | Stress Test? | Qualifying Rate |
|---|---|---|
| **New purchase** | ✅ Yes | Higher of contract+2% or 5.25% |
| **Refinance** | ✅ Yes | Higher of contract+2% or 5.25% |
| **Renewal (same lender)** | ❌ No | Contract rate only |
| **Straight switch (new lender)** | ❌ No | Contract rate only |
| **Increasing mortgage amount** | ✅ Yes | On the incremental amount |
| **Extending amortization** | ✅ Yes | Full re-qualification |

## Institutional highlights
- Lenders will check your financial history and ability to repay your mortgage.
- Lenders will look at your income and debts to make sure you can comfortably afford your mortgage payments.
- Lenders have to follow rules and keep records about how they approve mortgages.
- When you get a mortgage without a big down payment, lenders use a 'stress test' with a higher interest rate to see if you can still afford your payments if interest rates rise.

## 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