# How does the Dec 2024 switch rule impact assumption demand?

> Since Dec 15, 2024, insured borrowers can switch at renewal without a stress test.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/how-does-the-dec-2024-switch-rule-impact-assumption-demand

## Answer
### Section Summary

- Value Proposition: Rate arbitrage.
- Risk: Liability retention if the 'Release of Covenant' is not signed.
- Strategy: Always make the 'Assumption' conditional on the seller being fully released.

## Related guide
- https://ratellow.com/guides/assumable-mortgages-2026

## Sources
- Final Capital Adequacy Requirements Guideline (2026) — https://www.osfi-bsif.gc.ca/en/news/backgrounder-final-capital-adequacy-requirements-guideline-2026
- BANKOFCANADA — https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/#Introduction