What about switching mortgages to a FRFI at renewal?
OSFI has updated its guidelines regarding 'straight switches' of uninsured mortgages between FRFIs to boost competition.
Key Points
A simple mortgage switch means moving your existing uninsured mortgage to a new lender without increasing the amount you owe or changing your payment schedule.
Your new lender will evaluate your mortgage application carefully, just like when you first got your mortgage, to make sure you can afford it.
Lenders will look closely at your income and debts to ensure you can comfortably manage your mortgage payments, even if interest rates rise.
Technical Research Verification
Our systems synchronized 3 data points and regulatory frameworks to verify this technical brief.
Related Questions
How does the stress test differ for fixed vs. variable in 2026?
Both are stress-tested at the higher of the benchmark (5.25%) or the contract rate + 2%.
Why are 3-year fixed rates dominating the 2026 market?
Borrowers are hesitant to lock in for 5 years at current levels, but find 1-2 year rates too expensive.
Fixed vs. Variable Comparison Table
Fixed locks a 5-year rate with IRD penalty risk; variable floats with prime and typically caps break fees at 3 months interest.
What is the 'IRD' penalty risk for 5-year fixed borrowers?
The Interest Rate Differential (IRD) can cost tens of thousands if you break a fixed mortgage when market rates have dropped.