On November 21, 2024, Canada will see a significant change to mortgage rules: the removal of the stress test requirement for uninsured mortgage switches at renewal. This means homeowners with uninsured mortgages (typically those with more than a 20% down payment) will no longer need to qualify under the stress test if they switch lenders at renewal. The goal of this update is to provide more flexibility and encourage competitive shopping for better mortgage rates, especially in a high-interest environment.
This new rule aligns with long-standing requests from the mortgage industry and offers relief to homeowners who previously faced barriers when trying to switch lenders, even though their financial situation had not worsened.
For insured mortgages, stress tests have already been waived at renewals since October 2023, and this new change extends similar flexibility to uninsured borrowers.
These updates reflect efforts by the Office of the Superintendent of Financial Institutions (OSFI) to adjust regulations in response to economic conditions and improve consumer choice without compromising financial stability.
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