# What are the regulatory rules for renewal stress test exemptions?

> When you renew your mortgage with your current lender (a straight switch), you are exempt from the mortgage stress test requalification rules. This exemption applies to both uninsured and portfolio-insured mortgages as of late 2024.

Category: Renewal
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/renewal/what-are-the-regulatory-rules-for-renewal-stress-test-exemptions

## Answer
As of November 21, 2024, the Minimum Qualifying Rate (MQR) stress test is eliminated for straight switches of uninsured mortgages. This was extended in December 2024 to portfolio-insured pools. Borrowers qualify at the contract rate, neutralizing the previous 'trapped borrower' syndrome.

Below is a summary table of key regulatory details:

| Label               | Value                                                        |
|---------------------|--------------------------------------------------------------|
| Effective Date      | Nov 21, 2024 (OSFI confirmation)                             |
| MQR Baseline        | Qualifying Rate = MAX(contract_rate + 2%, 5.25%)            |
| Target Audience     | No official percentage target published for renewals qualifying for straight switch relief |

## Related guide
- https://ratellow.com/guides/no-stress-test-renewal

## Sources
- Northwood Mortgage – Explaining the Mortgage Stress Test in 2025 — https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/#Methodology