What is a 'straight switch' and how does it affect the minimum qualifying rate (MQR)?
Here's a quick comparison of the scenarios:
Key Points
This is only true if you don't increase your mortgage amount or change your payment schedule.
The lender will still review your finances carefully, just like with any new mortgage application.
Your lender will look closely at how much debt you have compared to your income, even if things change.
While lenders have limits on high loan-to-income mortgages, this doesn't directly affect your individual mortgage application.
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.