# What is the new regulatory framework for renewal negotiations?

> The primary development is the OSFI B-20 Amendment removing stress-test requirements for straight switches.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/what-is-the-new-regulatory-framework-for-renewal-negotiations

## Answer
| Regulatory Change | Impact on Negotiation |
|---|---|
| **Stress test removal (straight switch)** | Borrowers can credibly threaten to switch lenders |
| **$1.5M insured mortgage cap** | More properties qualify for insured rates |
| **FTHB 30-year amortization** | Expanded options for first-time buyers |
| **LTI portfolio limits** | May tighten availability at some lenders |

**Strategic Proof:**

- Stress Test Removal: Qualified at contract rate for transfers.
- Cap Increase: Properties up to $1.5M eligible for low-rate insured funds.
- FTHB Flexibility: 30-year insured amortization available.

## Related guide
- https://ratellow.com/guides/negotiating-with-current-lender

## Sources
- OSFI exempts uninsured mortgage straight switches from the prescribed MQR — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/osfi-exempts-uninsured-mortgage-straight-switches-prescribed-mqr-implements-portfolio-lti-limits
- Residential Mortgage Underwriting Practices — OSFI B-20 — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- Mortgage Loan Insurance — CMHC — https://www.cmhc-schl.gc.ca/consumers/home-buying/mortgage-loan-insurance-for-consumers
- Renewing Your Mortgage — FCAC — https://www.canada.ca/en/financial-consumer-agency/services/mortgages/renew-mortgage.html#toc0