# How does the OSFI straight-switch exemption help you?

> The straight-switch exemption is a game-changer, streamlining the renewal process for existing, uninsured mortgages.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/how-does-the-osfi-straight-switch-exemption-help-you

## Answer
The straight-switch exemption is a game-changer, streamlining the renewal process for existing, uninsured mortgages. Previously, borrowers switching lenders at renewal faced the Minimum Qualifying Rate (MQR) stress test, making it tough to find better rates. Now, eligible borrowers can switch to a new FRFI without this stress test, provided there are no increases to the loan amount or amortization period. This boosts competition among lenders and can secure lower rates for you.

## Institutional highlights
- You might not need to pass the mortgage stress test when you switch lenders at your mortgage renewal, which can help you find a better interest rate.
- This only works if you're moving your existing uninsured mortgage to a new lender without increasing your loan amount or extending your payment schedule.
- Lenders will still check your ability to repay the mortgage, even if you don't need to pass the full stress test.
- Lenders will carefully calculate how much debt you can handle, considering different financial situations.
- Starting in 2025, there will be limits on how much you can borrow relative to your income, which could affect how much mortgage you can get.

## Related guide
- https://ratellow.com/guides/renewal-lump-sum-max

## 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
- Disclosure requirements — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#3.1
- 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