# How can I help borrowers leverage the OSFI 'straight switch' rule?

> The OSFI 'straight switch' rule offers borrowers with existing uninsured mortgages an opportunity to potentially avoid the stress test and secure competitive rates.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/how-can-i-help-borrowers-leverage-the-osfi-straight-switch-rule

## Answer
For example, you with a $500k uninsured mortgage with 15 years remaining can potentially find a new lender offering a better rate without needing to requalify under the higher stress test rate.

| Feature                      | Straight Switch                               | Standard Mortgage Qualification |
|------------------------------|-----------------------------------------------|---------------------------------|
| Minimum Qualifying Rate (MQR) | Exempt                                        | Applied                            |
| Loan Amount Increase           | Not Permitted (except for $3,000 for fees)   | Permitted (subject to approval) |
| Amortization Period Increase  | Not Permitted                                 | Permitted (subject to approval) |

## Institutional highlights
- 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.

## Related guide
- https://ratellow.com/guides/2026-renewal-cliff-survival

## 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
- Page 3 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3
- Page 2 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=2
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1