Straight-Switch Rule (November 2024)
OSFI's November 2024 policy change that eliminated the stress test for uninsured mortgage renewals when switching lenders with unchanged amount, amortization, and payment schedule.
The straight-switch rule is OSFI's November 21, 2024 clarification that federally regulated lenders do not need to apply the Minimum Qualifying Rate (MQR) stress test when a borrower switches from one lender to another at renewal, as long as the mortgage amount, amortization period, and payment schedule stay unchanged. This rule applies only to uninsured mortgages (insured mortgages were already exempt under a 2019 CMHC policy). The practical effect has been a major increase in renewal competition: borrowers who previously could not qualify to switch because rates had risen can now shop their renewal freely. The rule alone has reshaped the 2026 renewal market.
Related Terms
A mortgage qualifying rule requiring borrowers to prove they can afford payments at a rate higher than their actual contract rate — the greater of 5.25% or contract rate plus 2%.
The stress test rate — the greater of 5.25% or your contract rate plus 2 percentage points — used by lenders to qualify you for a mortgage.
The process of setting new mortgage terms when your current term ends — you can stay with your lender or switch without re-qualifying (uninsured, unchanged amount).
The Office of the Superintendent of Financial Institutions' Residential Mortgage Underwriting Practices and Procedures guideline — the source of the stress test and most Canadian mortgage qualifying rules.
Related Guides
- 2026 Canadian Mortgage Rules: December 2024 Reforms, Straight Switch Exemption & CMHC Updates Explained
- 2026 Canadian Mortgage Stress Test Explained: OSFI Rules, Renewal Exemptions & Straight Switches
- 2026 Mortgage Renewal Canada: OSFI Straight Switch Rules, CMHC Insurance & Your Survival Guide
- Switching Mortgage Lenders at Renewal in Canada: 2026 Straight-Switch Guide (No Stress Test)
Related FAQs
- What is a 'straight switch,' and how does it impact refinancing at renewal?
- How does the 'straight switch' exemption benefit you at renewal?
- What documentation is typically required for a mortgage application, and how might this differ for a 'straight switch'?
- How can I help borrowers leverage the OSFI 'straight switch' rule?
- What exactly is a 'straight switch' mortgage renewal, and how does it impact you?