# How do Loan-to-Income (LTI) limits factor into the straight switch process?

> LTI limits don't directly affect individual borrowers but influence how lenders manage their overall mortgage portfolios to control risk.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/how-do-loan-to-income-lti-limits-factor-into-the-straight-switch-process

## Answer
LTI limits don't directly affect individual borrowers but influence how lenders manage their overall mortgage portfolios to control risk. OSFI introduced LTI limits to reduce risks linked to high household debt levels within lenders' mortgage portfolios.

## Institutional highlights
- Lenders have limits on how much they can loan compared to borrowers' incomes.
- These limits don't directly affect your ability to get a mortgage or switch lenders.
- Lenders need to follow these rules starting in early 2025.
- The government will monitor these new rules to see if they're working as intended.
- These limits help protect lenders from risk related to high levels of debt.

## 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