Stress test at renewal: renewals and straight switches
No. Renewing with your current lender isn't retested, and since November 21, 2024 an uninsured straight switch to another federally regulated lender, with the same balance and amortization, is exempt too. Insured switches are exempt under the Canadian Mortgage Charter. Borrow more or stretch the amortization and you requalify at your rate + 2 points or 5.25%.
Do you have to pass the stress test to renew?
No, not if you renew with the lender you already have. When OSFI brought in the uninsured stress test in 2018, it told banks they are "not expected to re-apply the qualification rate assessment" to borrowers who are renewing. A renewal isn't new lending: the balance, the property and the borrower are the same, so the lender just offers you a new rate and term.
That has been true since the start. What changed more recently is switching: moving the same mortgage to a different lender at renewal. Until late 2024, an uninsured switch was treated as a new mortgage, so you had to requalify at the higher rate. Now, in most cases, you don't.
Renewals with your current lender aren't retested: Source: OSFI, Final revised Guideline B-20 (letter of October 17, 2017), effective October 17, 2017. Checked .The terms this page uses
- Renewal
- Signing a new term with the lender that already holds your mortgage when the old term ends. Same balance, same home, new rate.
- Straight switch
- Moving the mortgage to a different lender at maturity with the same balance and the same amortization, and no equity taken out.
- Remaining amortization
- The years left until the mortgage would be paid off at the current payment. It's on your renewal letter; a straight switch keeps it.
- Refinance
- Any change that borrows more or stretches the amortization. It's new lending, so you requalify at the qualifying rate.
What counts as a straight switch, and when did the rules change?
The exemption reached insured and uninsured mortgages at different times, under different authorities:
| Your mortgage | Exempt since | Conditions | Who says so |
|---|---|---|---|
| Uninsured (20%+ down when you bought), moving to a federally regulated lender | November 21, 2024 | No increase in the loan amount or the amortization | OSFI |
| High-ratio insured (under 20% down) | Mortgage Charter of November 21, 2023 | Switching lenders at renewal; insured holders aren't required to requalify | Canadian Mortgage Charter (Department of Finance) |
| Low-ratio insured (portfolio-insured by the lender) | December 16, 2024 | Previous lender federally regulated and the loan was stress tested; same amortization schedule; balance up at most $3,000 for costs; no equity take-out | Federal insured-mortgage regulations |
Uninsured: the exemption covers a switch to a bank or federally regulated trust or loan company. Credit unions and caisses follow their province.
Two honest limits. The Mortgage Charter sets out what the federal government expects of lenders; it isn't a statute, and we couldn't confirm the exact date mortgage insurers began applying it to high-ratio switches. And OSFI's wording is that lenders are not expected to apply the qualifying rate to a straight switch. A new lender still underwrites you, so expect it to check your credit, income and the property, and it can still choose to apply the stress test as its own policy. Ask the lender before you apply whether it requalifies straight switches.
High-ratio insured switches under the Canadian Mortgage Charter: Source: Department of Finance Canada, 2023 Fall Economic Statement, Chapter 1: the Canadian Mortgage Charter, effective November 21, 2023. Checked .How much can switching save, and why does the exemption matter?
Here is a household for whom the 2024 change made a real difference. Its uninsured mortgage comes up for renewal, another lender offers the market average, and the current lender's offer is half a point higher.
$450,000 owing with 20 years left on a home worth about $750,000 (60% loan-to-value, uninsured). Household income $100,000, with $500 a month of other debts. The switch offer is 4.58%, the Bank of Canada's August 2026 average for new uninsured 5-year fixed mortgages; the 5.08% renewal offer is an illustration.
| Balance and years left | $450,000, 20 years |
|---|---|
| Household income, other debts | $100,000, $500 a month |
| Property tax, heating | $4,800 a year, $100 a month |
| Renewal offer vs switch offer | 5.08% vs 4.58%5-year term both ways |
| Monthly payment: renew vs switch | $2,977 vs $2,856Same balance, same 20 years: the only change is the rate |
| Interest over 5 years: renew vs switch | $104,320 vs $93,758 |
| Balance after 5 years: renew vs switch | $375,728 vs $372,404 |
| If the switch were retested at 6.58% | GDS 46.2%, TDS 52.2%Against 39% / 44%: it would fail |
| Income needed to pass a retest | $118,800$18,800 more than the household earns |
| Straight switch | Saves $10,562 of interest over 5 years, with no stress testBefore switching costs, which vary by lender |
Before November 21, 2024, moving this mortgage to another bank meant passing the test at 6.58%, and at 46.2% GDS it would not have. The household would likely have been stuck with the 5.08% offer, a captive renewal. Today the switch can go through on rate alone, and the $10,562 stays with the household. The balance also ends $3,324 lower, because more of each payment goes to principal.
Switching costs, such as legal, appraisal or discharge fees, vary by lender, and some lenders cover them. Subtract what you'd pay from the saving before you decide; the checker has a field for it.
Open this example in the renewal and switch checker →Computed November 1, 2026.
What turns a switch back into a stress test?
Anything that makes the switch new borrowing. Each of these puts you back at the greater of your rate + 2 points or 5.25%:
- Borrowing more. Adding money, even to consolidate a car loan, is a refinance. The only exception is the $3,000 cost allowance for low-ratio insured switches.
- Stretching the amortization. Resetting 20 remaining years back to 25 lowers your payment, but it's new lending, so you requalify.
- Taking equity out, or adding a HELOC as part of the move. See refinancing and the stress test.
- Switching to a lender outside OSFI's rule. Quebec's AMF guideline, which covers Desjardins caisses, has no straight-switch exemption, so a switch to a caisse can still mean requalifying. Provincial credit-union rules differ too.
Here's what each change does to the household above. All three are tested at 6.58%:
| Change at the switch | New loan and amortization | Monthly payment | GDS / TDS at the qualifying rate | Result |
|---|---|---|---|---|
| None (straight switch) | $450,000, 20 yrs | $2,856 | 46.2% / 52.2% | Not tested: switches |
| Borrow $30,000 more | $480,000, 20 yrs | $3,046 | 48.9% / 54.9% | Tested: fails |
| Add 5 years to the amortization | $450,000, 25 yrs | $2,511 | 42.4% / 48.4% | Tested: fails |
| Both | $480,000, 25 yrs | $2,678 | 44.9% / 50.9% | Tested: fails |
Ratios measured against 39% / 44%; lenders set their own limits for uninsured loans. Computed by our engine.
The middle row is the trap. Adding 5 years would cut the payment to $2,511, $345 less than the straight switch, which is exactly what a stretched household wants. But it's new lending, and at 42.4% GDS it fails. If your goal is a smaller payment, the untested route is the rate: a straight switch to a lower offer. Stretching the amortization at a new lender means passing the test.
Where we checked provincial credit-union rules, these don't include an exemption like OSFI's:
| Province | Regulator | Switch exemption in the text? |
|---|---|---|
| Alberta | Credit Union Deposit Guarantee Corporation (CUDGC); ATB Financial is a provincial Crown corporation | Not stated |
| Saskatchewan | Credit Union Deposit Guarantee Corporation (Saskatchewan), under FCAA oversight | Not stated |
| Quebec | Autorité des marchés financiers (AMF): Desjardins caisses and Quebec trust companies | No |
The other provinces either leave the qualifying rate to each credit union or have no published rule, so there's no switch rule to read. Details on the province-by-province page.
How big does the rate gap need to be?
The saving scales almost in a straight line with the gap between the two offers. On the same $450,000, 20-year mortgage over a 5-year term:
| Renewal offer above the switch offer by | Lower monthly payment | Interest saved over 5 years | Lower balance at the end |
|---|---|---|---|
| 0.10 points | $24 | $2,108 | $673 |
| 0.25 points | $60 | $5,275 | $1,674 |
| 0.50 points | $121 | $10,562 | $3,324 |
| 0.75 points | $182 | $15,861 | $4,949 |
| 1.00 points | $244 | $21,171 | $6,548 |
Switch offer 4.58% in every row. Monthly payments, semi-annual compounding, no prepayments. Computed by our engine.
A quarter point is worth about $5,275 of interest here. If a new lender's costs would eat most of that, ask your current lender whether it will match the offer; that's a renewal, so it isn't retested either. Our sister site can tell you whether a rate offer is good against the market.
Why do some lender pages still say switching triggers the test?
Because they were written before the change, or never updated. Several Canadian lender and broker pages we reviewed in November 2026 still say that moving to a new lender at renewal means requalifying, describe the exemption as uninsured-only, or date it to OSFI's September 2024 announcement rather than the November 21, 2024 effective date. Government consumer pages list refinancing and HELOCs as triggers but don't mention switches.
The accurate version: renewing with your lender isn't retested, and a straight switch is exempt for uninsured loans moving to a federally regulated lender and for insured loans. If a lender tells you otherwise, ask which rule it's applying. It may be a caisse or credit union outside OSFI's rule, your request may include more money or more years, or it may simply be that lender's own policy, which the exemption allows.
FCAC lists refinances and HELOCs as reasons to pass again: Source: Financial Consumer Agency of Canada, Preparing to get a mortgage: how the stress test impacts your qualification, effective October 15, 2025. Checked .What should you check before you switch?
- Your exact balance and remaining amortization at maturity. They're on your renewal letter. The new mortgage has to match them.
- Whether you're insured, and how. High-ratio insured, low-ratio insured and uninsured switches have different conditions (see the table above).
- The new lender's regulator. A bank or federally regulated trust company follows OSFI; a credit union or caisse follows its province.
- Who pays the switching costs, and whether the lender requalifies straight switches as its own policy.
- Timing. A straight switch happens at maturity. Breaking a term early can trigger a prepayment penalty, which varies by lender and contract.
The renewal and switch checker runs this comparison with your own balance, rates and income, and shows whether you'd pass if you were retested.
What this means for you
- If you're happy with your lender: renewing isn't retested. Still compare the offer against the market; even a quarter point was worth $5,275 in the example.
- If you'd fail a retest today (higher rates, lower income, more debt): a straight switch is your way to a better rate. Keep the balance and amortization exactly as they are, and pick a federally regulated lender, or confirm that an insured switch qualifies.
- If you want a lower payment by stretching the amortization: that's new lending. Run it first in the renewal and switch checker with the extra years entered.
- If you need cash from your equity: plan to requalify, and read refinancing and the stress test for the 80% limit and how much the test allows.
- If you're moving to a credit union or a Desjardins caisse: ask how it treats switches; the OSFI exemption doesn't bind it.
Frequently asked questions
Do I have to pass the stress test to renew my mortgage?
Not with your current lender. OSFI told federally regulated lenders in 2017 that they aren't expected to re-apply the qualifying rate to borrowers who renew.
Do I have to pass the stress test to switch lenders at renewal?
Not for a straight switch: the same balance and amortization, no equity taken out. Uninsured mortgages moving to a federally regulated lender have been exempt since November 21, 2024; insured mortgages are exempt under the Canadian Mortgage Charter, and low-ratio insured switches were written into regulation on December 16, 2024. A lender may still choose to requalify you, so ask.
Can I add money when I switch lenders?
Not without requalifying. Adding money makes it a refinance, tested at your rate + 2 points or 5.25%. Low-ratio insured switches may add up to $3,000 to cover switching costs.
Can I extend my amortization when I switch lenders?
Not as a straight switch. Extending the amortization lowers the payment but counts as new lending, so you'd have to pass the stress test at the new lender.
Does the switch exemption apply to credit unions and Desjardins?
OSFI's exemption covers switches to federally regulated lenders. Quebec's AMF guideline for caisses has no switch exemption, and Saskatchewan's and Alberta's credit-union texts don't state one, so ask the credit union how it treats a switch.
Primary sources
- OSFI — Final revised Guideline B-20 (letter of October 17, 2017) (effective October 17, 2017). Checked .
- 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 — 2023 Fall Economic Statement, Chapter 1: the Canadian Mortgage Charter (effective November 21, 2023). Checked .
- Department of Finance Canada — Straight switches and portfolio insurance (effective December 16, 2024). Checked .
- Department of Finance Canada — Boldest mortgage reforms in decades (insured switches at renewal, September 2024) (effective September 16, 2024). Checked .
- Autorité des marchés financiers (Québec) — Residential hypothecary lending guideline (revised September 2026) (effective September 1, 2026). Checked .
- Credit Union Deposit Guarantee Corporation (Saskatchewan) — Guideline 2015-01: Residential mortgage underwriting (Appendix I) (effective June 1, 2021). Checked .
- Credit Union Deposit Guarantee Corporation (Alberta) — Residential mortgage underwriting guidance G#03-2018 (effective March 1, 2018). Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
- Financial Consumer Agency of Canada — Preparing to get a mortgage: how the stress test impacts your qualification (effective October 15, 2025). Checked .
- Bank of Canada — Banking and financial statistics: effective rates on new mortgages. Checked .