How can I help borrowers leverage the OSFI 'straight switch' rule?
Key Points
The government wants to make sure banks are stable, but also lets them offer competitive mortgage rates.
Even if you don't need to re-qualify at a higher interest rate, your lender will still check your credit and finances.
Your lender will look at your income and debts carefully, considering possible changes in the economy when you renew your mortgage.
While there's no limit on how much you can borrow compared to your income, the lender has to manage the overall risk of their mortgages.
Primary sources
Primary sources cited by the Ratellow Research Team. Editorial standards · Correction policy
Related Questions
How does the stress test affect my 2026 renewal options?
Same-lender renewals and uninsured straight switches (OSFI, November 21, 2024) are exempt from the prescribed MQR. A refinance, an insured switch, or any increase in loan amount still requires the stress test — greater of 5.25% or contract + 2%.
What's the difference between insured and uninsured mortgage renewals?
Insured mortgages face stricter CMHC/Sagen constraints while uninsured mortgages enjoy flexible OSFI-only guidelines.
Should I consider switching lenders or negotiate with my current lender?
Your switching decision hinges on rate differential versus requalification risk, with break-even analysis determining optimal strategy.
When should I start my mortgage renewal process?
Start your renewal process 120-180 days before your current term expires to maximize your strategic options.