Since November 21, 2024, many Canadian borrowers with uninsured mortgages have been able to switch lenders at renewal without being requalified under OSFI’s mortgage stress test, as long as it is a straight switch. This does not remove the stress test for new purchases, refinances, insured mortgages, or switches where the borrower increases the loan amount or changes core risk features. The practical effect is simple: qualifying borrowers can shop competing renewal offers more easily instead of being locked into their current lender by the stress test.

What changed

OSFI’s B-20 guideline sets expectations for federally regulated lenders, including how they assess a borrower’s ability to carry an uninsured mortgage (OSFI, 2026). Before the change, a borrower with an uninsured mortgage often had to pass the stress test again when switching from one federally regulated lender to another, even if the balance and amortization were staying the same.

The change creates an exception for straight switches of uninsured mortgages. In plain English, that means a borrower renewing an existing conventional mortgage can move it to another lender without the stress test being the barrier, provided they are not borrowing more money and are not extending the loan in a way that changes the lender’s risk.

Who this helps

This mainly helps homeowners who put at least 20 per cent down or now have enough equity that their mortgage is uninsured. It is most relevant at the end of a mortgage term, which in Canada is commonly one to five years. The term is not the same as the amortization. The amortization is the full repayment schedule, often 25 or 30 years, while the term is the contract period after which the borrower renews, renegotiates, or switches.

The Financial Consumer Agency of Canada explains that a mortgage renewal is the time to review the rate, term, payment frequency, and other features before signing the next contract (FCAC, 2026). With the OSFI switch relief in place, more uninsured borrowers can compare renewal offers from other lenders instead of accepting the first offer from their current lender.

What still does not qualify

This is not a broad repeal of Canada’s mortgage stress test. The stress test can still apply if you are buying a home, refinancing to access equity, increasing the mortgage balance, extending the amortization beyond the remaining schedule, or making a material change to the loan. It can also still matter when the lender is not treating the file as a straight switch.

Read also: OSFI Stress Test Update in Canada: What Uninsured Renewal Switches Mean

The rule also does not erase normal underwriting. A new lender may still review your credit, income, property, payment history, title, and documentation. OSFI’s B-20 guideline still expects lenders to use prudent underwriting and risk management practices for residential mortgages (OSFI, 2026).

Why it matters for renewal shopping

The change improves borrower mobility. If your current lender offers an uncompetitive renewal rate, you may have more leverage to ask for a better offer or switch to a different lender. That can matter because mortgage rates are influenced by broader interest rate conditions, including the Bank of Canada’s policy interest rate, although fixed and variable mortgage pricing also reflects bond yields, lender funding costs, competition, and borrower risk (Bank of Canada, 2026).

A rate comparison site or mortgage broker can help you see the market range, but the lowest posted rate is not always the best contract. Prepayment privileges, portability, fixed versus variable pricing, and penalty formulas can all change the real cost of a mortgage. Ratehub’s mortgage comparison page is one example of a consumer rate-shopping resource, but final eligibility depends on lender approval (Ratehub.ca, 2026).

Bottom line

If you have an uninsured mortgage coming up for renewal in Canada, ask whether your file qualifies as a straight switch under the OSFI stress test exception. If it does, compare your current lender’s renewal offer with at least one mortgage broker or competing financial institution before signing.

This article is general educational information only. It is not personalized financial, lending, legal, or tax advice, and it is not an offer or commitment to lend. Mortgage rules, stress test treatment, default insurance requirements, land transfer tax, available programs, prepayment penalties, and lender policies vary by province or territory, lender, product, and borrower circumstances. Confirm your options with a licensed mortgage broker, your financial institution, the FCAC, or a qualified tax professional before making a decision.