How does the Minimum Qualifying Rate (MQR) impact mortgage switching?
Key Points
You might not need to pass the mortgage stress test when you switch your existing mortgage to a new lender.
A 'straight switch' means moving your current uninsured mortgage to a different bank or lender.
To qualify, you can't increase your mortgage amount or extend your original payment schedule.
The new lender will still carefully review your finances, just like when you first got your mortgage.
They'll look at your debt levels and make sure you can handle your payments, even if interest rates rise.
Primary sources
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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.