Do you need the mortgage stress test to renew or switch lenders in Canada?
Quick summary
OSFI says it no longer requires the stress test for an uninsured mortgage that moves from one federally regulated lender to another at renewal, if you do not add to the loan or the amortization. Finance Canada made the same change for insured mortgages from December 16, 2024. If you want a bigger loan, longer amortization or equity out, the test can still apply. Next step: see how the stress test works.
Checked November 11, 2026. Main source: OSFI: Exempting uninsured mortgage straight switches from the minimum qualifying rate (publication date shown November 21, 2024, other dates on the page differ, read November 11, 2026). See all 3 sources.
Key facts
- Uninsured straight switch
- No stress test, if conditions are met (OSFI)
- Source: OSFI, publication date shown November 21, 2024
- Insured straight switch
- No stress test, if conditions are met (Finance Canada)
- Source: Finance Canada, December 16, 2024
- Room to add
- Up to $3,000 for costs such as fees or penalties
- Source: OSFI and Finance Canada
- Same lender renewal
- Neither page says
- Source: OSFI and Finance Canada pages
The short answer
A straight switch means you move your mortgage to a new lender at renewal without borrowing more or stretching it out. OSFI's page says it no longer prescribes the minimum qualifying rate, which is the stress test rate, for this case on uninsured mortgages. Finance Canada says the stress test no longer applies to qualifying straight switches of insured, low ratio mortgages.
Sources: OSFI: Exempting uninsured mortgage straight switches from the minimum qualifying rate (publication date shown November 21, 2024, other dates on the page differ, read November 11, 2026); Department of Finance Canada: Straight switches and portfolio insurance (December 16, 2024, read November 11, 2026).
The conditions you must meet
| Uninsured mortgage (OSFI) | Insured, low ratio mortgage (Finance Canada) | |
|---|---|---|
| Where it moves | From one federally regulated lender to another | The mortgage was first made by a federally regulated lender and already tested at the qualifying rate, and you renew with a new lender |
| Type | Stand-alone, amortizing, not readvanceable, not in a combined loan plan | Low ratio, which means a loan up to 80% of the home's value |
| Amortization | No increase to the remaining amortization | Keep the existing amortization schedule |
| Loan amount | No increase, except up to $3,000 for transaction costs | The unpaid amount may go up by up to $3,000 for costs such as penalties or fees |
| Equity out | Not allowed | Not allowed |
| Start date | Publication date shown November 21, 2024 | December 16, 2024 for mortgage insurance applications on or after that date |
Sources: OSFI: Exempting uninsured mortgage straight switches from the minimum qualifying rate (publication date shown November 21, 2024, other dates on the page differ, read November 11, 2026); Department of Finance Canada: Straight switches and portfolio insurance (December 16, 2024, read November 11, 2026). The OSFI page says the change is effective on the day it was issued, but its page shows several dates (October 29, 2024, November 21, 2024 and December 19, 2024). We use November 21, 2024, the publication date it shows.
When the stress test can still apply
- You borrow more than your current balance plus up to $3,000.
- You lengthen the amortization.
- You take equity out of your home.
- You are buying a home, not renewing. Our stress test guide covers this.
- The OSFI page also says a lender should still assess a straight switch like a new mortgage under its own rules (OSFI Guideline B-20), so a lender can still say no.
Sources: OSFI: Exempting uninsured mortgage straight switches from the minimum qualifying rate (publication date shown November 21, 2024, other dates on the page differ, read November 11, 2026); Department of Finance Canada: Straight switches and portfolio insurance (December 16, 2024, read November 11, 2026).
What about renewing with your current lender?
Neither page we read covers this. OSFI's page applies to moves between different lenders. The Finance Canada page describes renewing with a new lender. We do not know what your lender will ask for, so ask it. The FCAC's renewal page does not mention the stress test either.
Sources: OSFI: Exempting uninsured mortgage straight switches from the minimum qualifying rate (publication date shown November 21, 2024, other dates on the page differ, read November 11, 2026); Department of Finance Canada: Straight switches and portfolio insurance (December 16, 2024, read November 11, 2026); Financial Consumer Agency of Canada: Renewing your mortgage (modified October 15, 2025, read November 11, 2026).
What to do next
- Check your balance, amortization and whether your mortgage is insured.
- Ask your current lender for your renewal statement. A federally regulated lender must send it at least 21 days before your term ends.
- Compare at least one other lender's offer. Ask whether it treats you as a straight switch.
- Add up the switching costs: fees, discharge and any appraisal.
Source: Financial Consumer Agency of Canada: Renewing your mortgage (modified October 15, 2025, read November 11, 2026).
Questions people ask
Do I need to pass the stress test to switch lenders at renewal?
Not for a qualifying straight switch. OSFI says it no longer requires it for uninsured mortgages that move between federally regulated lenders without extra amortization or loan amount. Finance Canada made a similar change for insured mortgages from December 16, 2024.
What is a straight switch?
Moving your mortgage to a new lender at renewal, keeping your amortization and not borrowing more, apart from up to $3,000 for costs. No equity is taken out.
Do I need the stress test to renew with my current lender?
The pages we read do not say. OSFI's page covers moves between lenders. Ask your lender.
Can I add to my mortgage when I switch?
Up to $3,000 for costs such as fees or penalties, per OSFI and Finance Canada. More than that, or any equity out, means you may need to pass the test.
When did the stress test change for switches?
OSFI's page shows a publication date of November 21, 2024. Finance Canada's change started December 16, 2024, for insurance applications made on or after that date.
Does a lender still have to approve my switch?
Yes. OSFI says lenders should assess a straight switch like a new mortgage under their own rules. The FCAC says the new lender may use different criteria.