OSFI Stress Test Exemption for Lender Switches: 18 Months In OSFI Stress Test Exemption for Lender Switches: 18 Months In

On November 21, 2024, OSFI updated Guideline B-20 so federally regulated lenders no longer need to apply the minimum qualifying rate (MQR) when an uninsured borrower transfers their mortgage to a new lender at renewal — provided it is a straight switch with the same balance, same amortization, and no new money.

What changed for borrowers

Before the change, many homeowners who could not re-qualify at contract rate plus 2% (or the 5.25% floor) were effectively trapped with their current lender at renewal. The prescribed MQR no longer applies to those uninsured straight switches — Guideline B-20 and lender overlays still do.

Refinances, amortization extensions that add risk, and any request for new funds still trigger full B-20 underwriting.

What to do before you switch

1. Confirm your renewal is a straight transfer — same principal, same remaining amortization.
2. Compare your bank’s renewal letter against broker-channel rates (often 0.25–0.75% lower).
3. Budget switching costs: discharge, legal, and title insurance — many lenders cover legal on competitive switches.

Even when many lenders cover legal fees on competitive switches, discharge fees remain a material cost that should be factored into any renewal comparison.

A Break-Even Switch Calculator helps quantify how long rate savings need to run before they offset remaining switch costs such as discharge fees.

For the full eight-step process, see our switching lenders at renewal guide.

Sources

• OSFI Guideline B-20
• FCAC — Renewing your mortgage