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. That barrier is gone for simple transfers.
Refinances, amortization extensions that add risk, and any request for new funds still trigger full B-20 underwriting.
What to do before you switch
- Confirm your renewal is a straight transfer — same principal, same remaining amortization.
- Compare your bank’s renewal letter against broker-channel rates (often 0.25–0.75% lower).
- 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.