# 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.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/what-about-switching-mortgages-to-a-frfi-at-renewal

## Answer
For example, OSFI now exempts uninsured mortgage straight switches from the prescribed MQR (minimum qualifying rate). Here's a quick look at an example:

| Feature                | Original Mortgage | New Mortgage (Straight Switch) | Change | Notes                                                                  |
| ---------------------- | ----------------- | ----------------------------- | ------ | ---------------------------------------------------------------------- |
| Lender Type            | FRFI              | FRFI                          | N/A    | Must be a switch between federally regulated financial institutions.     |
| Insurance Status       | Uninsured         | Uninsured                     | N/A    | This exemption only applies to uninsured mortgages.                     |
| Amortization Period   | 25 years            | No Increase                   | No     | The remaining contractual mortgage amortization period cannot increase. |
| Loan Amount            | $500,000           | No Increase                   | No     | The loan amount cannot increase during the switch.                        |
| Minimum Qualifying Rate | Previously Required | Exempt                        | Yes    | The new institution is not required to apply the prescribed MQR.      |

## Institutional highlights
- 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.

## Related guide
- https://ratellow.com/guides/private-mortgage-exit-strategy

## Sources
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- OSFI exempts uninsured mortgage straight switches from the prescribed MQR and implements portfolio LTI limits — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/osfi-exempts-uninsured-mortgage-straight-switches-prescribed-mqr-implements-portfolio-lti-limits
- IV. Other guidance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#4.0