What the 2024 Mortgage Stress Test Change Means for Switching at Renewal

Published 2025-02-01 · Updated 2026-06-07 · Reviewed against guidance from FSRA-licensed brokers

Do I need to pass the stress test to switch lenders at mortgage renewal?

Often not anymore. As of November 21, 2024, the Office of the Superintendent of Financial Institutions (OSFI) removed the stress-test requirement for uninsured mortgage holders doing a straight switch to a new lender at renewal. A straight switch means you keep the same balance and amortization and don’t borrow more. You can now shop for a better rate without re-qualifying at the higher benchmark rate.

Insured borrowers were already exempt from this. The 2024 change extended the same treatment to uninsured borrowers, so the barrier is now gone for most homeowners.

This applies to federally regulated lenders across Canada, including the major banks operating in Ontario.

What changed and why it matters

Until late 2024, switching to a new lender at renewal meant proving you could afford payments at the qualifying rate (your contract rate plus 2%, or the benchmark rate, whichever was higher). Insured mortgages were exempt, but uninsured borrowers were not. That trapped many homeowners with their current lender even when better rates were available elsewhere.

The OSFI change removed that test for uninsured straight switches (mortgages with 20% or more equity, not backed by mortgage insurance), as long as the balance and amortization stay the same.

Who benefits most

• Homeowners who put 20% or more down. Your mortgage is likely uninsured, and you now qualify for the exemption on a straight switch.
• Those facing a payment jump. If your rate is rising sharply at renewal, you can shop the whole market for the best available rate.
• Anyone whose income has changed. A job change or lower income used to make switching hard. On a straight switch, the qualifying-rate test no longer stands in the way.

Where it still applies

• Refinances. If you increase your mortgage amount or change your amortization, the stress test still applies, regardless of insurance status.
• Debt-service checks. Lenders still assess whether you can afford the loan (your debt-service ratios). The change removed the qualifying-rate hurdle on switches, not all underwriting.

How to use it

1. Check whether your mortgage is uninsured (typically 20%+ down). Your original mortgage documents or your lender can confirm.
2. Start shopping rates about 90 to 120 days before your renewal date.
3. Work with a licensed mortgage broker who can compare 30+ lenders in one step and handle the switch.

Figures shown are indicative and for general information only, subject to qualification and lender approval, OAC. Not a quote. A licensed mortgage broker provides your personalized quote.

Sources

• OSFI — exemption for uninsured mortgage straight switches
• OSFI — minimum qualifying rate for uninsured mortgages
• CMHC — Mortgage loan insurance