Switching lenders at renewal: do you face the stress test?

For years, moving your mortgage to a new lender at renewal meant qualifying again at a higher rate. Many people who couldn't pass that test were stuck with their lender's renewal offer. That changed in late 2024.

Uninsured mortgages: OSFI's change on November 21, 2024

OSFI regulates banks and other federally regulated lenders. Effective November 21, 2024, it no longer expects those lenders to apply the minimum qualifying rate to an uninsured "straight switch". To count as one, all of these must be true:

It's an existing stand-alone uninsured mortgage. That means amortizing and not readvanceable, so not part of a combined line-of-credit plan.
It moves from one federally regulated lender to another.
The remaining amortization doesn't get longer.
The loan amount doesn't go up, except by up to $3,000 to cover costs such as a penalty or fees. No equity take-out.

Insured mortgages

The federal government says insured mortgage holders can switch lenders at renewal without another stress test (the Canadian Mortgage Charter, Budget 2024). The Department of Finance then changed the mortgage insurance rules for low-ratio mortgages (loan-to-value up to 80%) from December 16, 2024. The mortgage must have started at a federally regulated lender and been tested at the qualifying rate then. The borrower must keep the same amortization schedule, and the balance can grow by at most $3,000 for costs.

What the new lender still checks

A skipped stress test isn't an automatic approval. OSFI tells lenders to assess a straight switch like any new mortgage: your income, debts and credit, using debt ratios that are "calculated conservatively". You still have to qualify at your actual contract rate.

When the test still applies

You want to borrow more than $3,000 extra, or take equity out.
You want a longer amortization to lower the payment.
Uninsured, and the old or new lender is provincially regulated (most credit unions). They follow provincial rules and their own policies.
You're breaking the mortgage before the term ends to refinance. That's a new mortgage.

Not sure where you fit? Use the quick check on the renew vs switch calculator, then confirm with the lender. The qualifying rate itself is explained on our stress test calculator.

This is an estimate for general information. It is not advice about your situation. Check the final numbers with your lender, your real estate lawyer, or the official source.

Sources

Last checked: October 10, 2026