What is a 'straight switch' at renewal and how does it relate to amortization?
Key Points
You might not need to pass the mortgage stress test when you renew with a new lender.
This is only if you keep your mortgage amount and payment schedule the same when you switch lenders.
Lenders will still carefully review your ability to repay your mortgage.
Your debt payments compared to your income will be carefully considered.
There are limits on how much you can borrow relative to your income to help manage household debt.
Primary sources
Primary sources cited by the Ratellow Research Team. Editorial standards · Correction policy
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.