# What is a 'straight switch' and how does it affect the minimum qualifying rate (MQR)?

> A 'straight switch' moves an existing uninsured mortgage to a new lender at renewal with no change in amount or amortization — and as of 2024 OSFI guidance, the minimum qualifying rate (MQR) no longer applies.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/what-is-a-straight-switch-and-how-does-it-affect-the-minimum-qualifying-rate-mqr

## Answer
Here's a quick comparison of the scenarios:

## Institutional highlights
- You might not need to pass the mortgage stress test when you move your uninsured mortgage to a new lender.
- 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.

## Related guide
- https://ratellow.com/guides/mortgage-portability-guide

## Sources
- 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
- 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
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1