# Even with the MQR exemption, how will FRFIs assess my client's eligibility?

> Even without the stress test, lenders will still thoroughly assess borrowers based on Guideline B-20 principles to ensure they can repay the mortgage.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/even-with-the-mqr-exemption-how-will-frfis-assess-my-clients-eligibility

## Answer
Even without the stress test, lenders will still thoroughly assess borrowers based on Guideline B-20 principles to ensure they can repay the mortgage. This includes a careful review of their willingness and ability to pay, using conservative debt service ratio calculations that account for potential future financial pressures.

## Institutional highlights
- Lenders must follow guidelines for responsible mortgage lending.
- Lenders need to stick to these mortgage rules.
- Lenders will check if you can comfortably afford your mortgage payments.
- Lenders will carefully calculate if you can handle your debts, even if interest rates change.
- Lenders must have strong processes to manage mortgage risk.

## Related guide
- https://ratellow.com/guides/renewal-switch-process

## 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
- 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