OSFI easing stress test requirements for uninsured mortgages when switching providers

OSFI relents on stress tests for uninsured mortgages when lender switched at renewal

After rejecting a call by Canada’s Competition Bureau to treat mortgage stress testing equally at renewal, regardless of whether a borrower stays with the same financial institution or switches to a new one, the country’s top banking regulator has had a change of heart.

OSFI easing stress test requirements for uninsured mortgages when switching providers

The national banking regulator says it will no longer require borrowers with uninsured mortgages to undergo a stress test when switching providers.

Homeowners who switch lenders at mortgage renewal will no longer be subject to stress-test rules, OSFI says

As of Nov. 21, the Office of the Superintendent of Financial Institutions will no longer require banks to apply the mortgage stress test on borrowers who are switching banks when renewing their loans

OSFI to end stress test requirement for uninsured mortgage switches starting Nov. 21 - Mortgage Rates & Mortgage Broker News in Canada

OSFI has confirmed that it will remove the requirement for lenders to apply the Minimum Qualifying Rate (MQR) to straight switches of uninsured mortgages.