Renewal and switching: when a new appraisal or stress test applies
A straight renewal with your lender rarely needs a new appraisal or a new stress test. Since November 2024, OSFI exempts uninsured straight switches (same amount and amortization, to a new federally regulated lender) from the minimum qualifying rate; the new lender may still want a valuation. Adding money or extending the amortization turns it into a refinance: new appraisal, stress test, and the 80% limit.
Renewing with your lender
No penalty, usually no appraisal, and no stress test for the same amount. It's the cheapest moment to restructure.
Switching lenders
OSFI's November 2024 letter exempts uninsured mortgage straight switches from the prescribed minimum qualifying rate. The new lender still underwrites the loan and may order a valuation. Expect a discharge fee from the old lender (we estimate $350).
When it becomes a refinance
Borrowing more, extending the amortization or adding a co-borrower usually makes it a refinance: appraisal, stress test at max(rate + 2, 5.25%), and the 80% limit.
Planning around renewal
Six months before renewal, test your numbers in the equity calculator with months left set to 0.
Frequently asked questions
Do I need to pass the stress test to switch lenders at renewal?
Not for an uninsured straight switch since OSFI's November 2024 change: same loan amount and amortization. Adding money or extending the amortization brings the stress test back.
Primary sources
- OSFI — Straight switches exempt from the prescribed MQR; portfolio LTI limits (effective November 21, 2024). Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
- Financial Consumer Agency of Canada — Reduce mortgage prepayment penalties (effective October 15, 2025). Checked .
- Justice Laws — Bank Act, s. 418: 80% limit on uninsured residential loans (including refinances) (effective September 1, 2026). Checked .