OSFI's Surprise for Uninsured Mortgages when Switching Lenders

The Office of the Superintendent of Financial Institutions (OSFI) says it will end the policy for lenders to apply the minimum qualifying rate to straight switches — when uninsured mortgages are renewed at a different institution under the mortgagor’s current amortization schedule and loan amount.

The stress test needs federally regulated financial institutions to ensure borrowers can still make mortgage payments if they experience financial shocks such as an increase in mortgage interest rates or an increase in household expenses.

What is the benefit of this change?

This change ensures that homeowners can secure the best rate that fits their financial needs without unnecessary barriers, giving them greater choice and flexibility when switching to a new lender.

What is the Uninsured Mortgage?

Those mortgages with 20% + down payment do not need a mortgage default insurance, so it is called uninsured mortgage.

What is the Stress Test?

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