Renewal and switch checker: do you need the stress test?
You don't requalify to renew with your lender, or to switch to another federally regulated lender with the same balance and amortization (OSFI since November 21, 2024; insured switches under the Mortgage Charter). Borrow more or extend and you're tested again. A lender may still choose to requalify you, so ask first.
Renewal and switch checker
Renew, switch lenders, or switch and borrow more: payment, interest over the term, and whether each path needs the stress test.
| Path | Payment | Interest over term | Stress test? |
|---|---|---|---|
| Renew with your lender 4.88% · $420,000 · 20 yrs | $2,733 | $93,416 | No |
| Straight switch 4.58% · $420,000 · 20 yrs | $2,666 | $87,507 | No |
Estimate, not advice. Educational estimate only, not financial, mortgage, tax or legal advice. Lenders, insurers and governments set their own rules and can change them; confirm with a licensed professional before you decide.
Straight switch saves $5,909 over the term with no stress test.
Assumptions & sources
Assumptions
- Renewal with your current lender: no stress test (a renewal isn't new lending).
- Straight switch to a new lender at renewal, same balance and amortization: no stress test for uninsured loans moving to a federally regulated lender (OSFI, from 2024-11-21) or for insured loans (Canadian Mortgage Charter, 2023-11-21; low-ratio insured in regulation from 2024-12-16). Quebec caisses (AMF) and some provincial credit unions have no such exemption.
- Adding money or years is new lending: you requalify at max(rate + 2, 5.25%). Uninsured refinances are capped at 80% of the home's value; insured mortgages can't be refinanced with more money and stay insured.
- Interest over the term: monthly payments, semi-annual compounding, no prepayments. Penalties don't apply at maturity.
Sources
- OSFI — OSFI exempts uninsured mortgage straight switches from the prescribed MQR and implements portfolio LTI limits (effective November 21, 2024). Checked .
- Department of Finance Canada — Boldest mortgage reforms in decades (insured switches at renewal, September 2024) (effective September 16, 2024). Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
- OSFI — Guideline B-20: Residential mortgage underwriting practices and procedures (effective January 1, 2018). Checked .
- CMHC — Calculating GDS / TDS. Checked .
| Balance and years left | $380,000, 18 years |
|---|---|
| Lender's renewal offer | 4.89% |
| Another lender's rate | 4.39% |
| Household income, other debts | $88,000, $600 a month |
| Interest over 5 years, renewing | $83,427 |
| Interest over 5 years, straight switch | $74,647No stress test: same balance and amortization |
| Switch and borrow $40,000 more | fails the stress testTested at 6.39%: GDS 50.2%, TDS 58.4% |
| Straight switch saves | $8,780Before any switching costs |
This household couldn't requalify today: that's exactly who the straight-switch exemption protects. The moment they add $40,000, the switch becomes new lending and the stress test applies. Rates here are illustrative offers, not quotes.
Open this example in the calculator →Computed November 1, 2026.
How this calculator works
The tool runs three paths through the same term: renew at your lender's offer; a straight switch at another lender's rate with the same balance and remaining amortization; and a switch that adds money or years. For each it shows the payment, the interest you'd pay over the term and whether the stress test applies.
It also tests every path at the qualifying rate, so you know whether you'd pass if you had to requalify. That matters because the switch exemption only covers a straight switch: the moment you add money or years, the loan is underwritten again.
Frequently asked questions
Do I have to pass the stress test to switch lenders at renewal?
Not if it's a straight switch: the same loan amount and amortization. OSFI stopped prescribing the qualifying rate for uninsured straight switches between federally regulated lenders on November 21, 2024. For insured mortgages, the 2023 Canadian Mortgage Charter says you shouldn't have to requalify, and low-ratio insured switches were written into regulation on December 16, 2024. Quebec caisses follow the AMF, whose guideline has no switch exemption.
What if I want to add money when I switch?
Then it's new lending and you requalify at the greater of the new rate + 2 points or 5.25%. Uninsured refinances are also capped at 80% of the home's value.
Is the stress test applied when I renew with my own bank?
No. Renewing with your current lender has never required passing the stress test again.
Primary sources
- OSFI — OSFI exempts uninsured mortgage straight switches from the prescribed MQR and implements portfolio LTI limits (effective November 21, 2024). Checked .
- Department of Finance Canada — Boldest mortgage reforms in decades (insured switches at renewal, September 2024) (effective September 16, 2024). Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
- OSFI — Guideline B-20: Residential mortgage underwriting practices and procedures (effective January 1, 2018). Checked .