# How does the Minimum Qualifying Rate (MQR) impact mortgage switching?

> OSFI exempts uninsured mortgage 'straight switches' from the MQR.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/how-does-the-minimum-qualifying-rate-mqr-impact-mortgage-switching

## Answer
Here's a simple chart contrasting the MQR requirement, pre and post-exemption:

| Scenario                         | MQR Applies? | Rationale                                                                   |
| -------------------------------- | ------------- | --------------------------------------------------------------------------- |
| Standard Uninsured Mortgage      | Yes           | Required to ensure borrower can handle potential rate increases.             |
| Uninsured Straight Switch        | No            | Exemption aimed to facilitate competition among lenders.                     |

## Institutional highlights
- 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.

## Related guide
- https://ratellow.com/guides/variable-trigger-points

## Sources
- Property appraisals — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.4.2
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- Debt service coverage — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.3.3