Switching Lenders at Renewal Just Got Easier: Stress‑Test Relief & How to Shop Your Mortgage

The friction has eased

Two important changes make renewal shopping more competitive and fair:

1. For insured mortgages: The Canadian Mortgage Charter expects that insured borrowers can switch lenders at renewal without re‑doing the stress test (MQR)—increasing competition and access to the cheapest deal.

2. For uninsured mortgages: OSFI removed the prescribed MQR for straight switches (no increase to loan amount or amortization) when moving to another federally regulated lender, as of Nov 21, 2024. Lenders must still apply sound underwriting, but you’re no longer trapped by the formal re‑qualification barrier.

Additionally, OSFI is testing portfolio‑level Loan‑to‑Income (LTI) limits (share of new uninsured mortgages >4.5x income), evaluating the framework through at least January 2026 as a complement—or possible alternative—to the stress test.

What this means for you at renewal

• More competition: Expect better rate offers as lenders vie for your business; early data through 2025 shows switching activity rose meaningfully after the rule change.

• Due diligence still applies: Even without a prescribed MQR, lenders will assess capacity and debt service under Guideline B‑20—so keep documents and budgets tight.

Renewal shopping checklist

• Start 4–6 months out: Request payout statements and rate holds; compare fixed vs. variable against your cash‑flow and risk tolerance.

• Ask for true‑cost quotes: Look beyond the headline rate—check fees, prepayment privileges, portability, and blend‑and‑extend options.

• Model future scenarios: Test payments at different rates (and +2% buffers) and consider whether the 30‑year amortization (where eligible) helps smooth cash flow without inflating lifetime interest unduly.

Renewal in the next 12 months? I will benchmark your current lender’s offer against at least three competitors and structure terms that match your financial goals.