B-20 Same-Lender Renewal Stress Test Exemption
Also known as: Same-lender renewal exemption · B-20 renewal exemption · Renewal stress test waiver
OSFI rule effective November 21, 2024 letting a borrower move an uninsured mortgage to a different federally-regulated lender at renewal without re-applying the B-20 stress test, provided the loan amount and remaining amortization are unchanged.
Effective November 21, 2024, a borrower may move an existing UNINSURED mortgage to a DIFFERENT federally-regulated lender at renewal without re-applying the B-20 stress test, provided the loan amount does not increase and the remaining amortization is not extended — a "straight switch". This was the most material loosening of the federal stress test since its 2018 introduction, and it closed a gap: insured borrowers had already been freed from re-qualifying on a switch in January 2024. Before the change, borrowers who could not requalify were locked into whatever rate their existing lender offered, because leaving triggered the test and the incumbent knew it.
The exemption covers straight switches only. A refinance — any increase in the loan amount or extension of the amortization — still triggers the stress test, whoever the lender is. The change materially shifts borrower leverage on renewal cycles, because the incumbent can no longer use the test to keep a borrower at an uncompetitive rate. Practical effect: renewal offers have had to compress, since a borrower who can credibly threaten to leave can now actually leave.
Related terms
- OSFI Mortgage Stress Test (B-20) — OSFI Guideline B-20 requires federally-regulated lenders to qualify mortgage borrowers at the greater of (a) the contract rate plus 2 percentage points or (b) the Bank of Canada qualifying rate (5.
- CMHC Default Insurance Cap — The maximum home purchase price eligible for CMHC default mortgage insurance — raised from $1,000,000 to $1,500,000 effective December 15, 2024.
- Gross Debt Service Ratio (GDS) — A federal mortgage qualification ratio measuring annualized housing costs (mortgage P&I, property tax, heat, plus 50% of strata fees) against gross household income — generally capped at 39% under OSFI Guideline B-20 lender practice.
- Total Debt Service Ratio (TDS) — A federal mortgage qualification ratio measuring all annualized debt obligations (housing costs plus car loans, credit cards, lines of credit, student loans) against gross household income — generally capped at 44% under OSFI Guideline B-20 lender practice.
See also
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@misc{bronsonjob-osfi_b20_renewal_no_stress_test,
author = {Job, Bronson},
title = {{Straight switch at renewal — no stress test (Nov 2024+)}},
howpublished = {BC Real Estate Codex},
year = {2024},
url = {https://www.bronsonjob.com/codex#osfi.b20.renewal_no_stress_test},
urldate = {2026-08-02},
note = {Fact ID: osfi.b20.renewal_no_stress_test, version 2.}
}Job, B. (2024). Straight switch at renewal — no stress test (Nov 2024+). *BC Real Estate Codex*. Retrieved 2026-08-02, from https://www.bronsonjob.com/codex#osfi.b20.renewal_no_stress_test
Straight switch at renewal — no stress test (Nov 2024+) — Bronson Job PREC, BC Real Estate Codex (2026-08-02). https://www.bronsonjob.com/codex#osfi.b20.renewal_no_stress_test
Fact id: osfi.b20.renewal_no_stress_test · v2 · machine-readable: /api/v1/facts/by-id/osfi.b20.renewal_no_stress_test.json
Verified sources (1)· re-verified 2026-08-02Click to expand
Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.
- OSFIretrieved 2026-08-02· published 2024-09-24OSFI exempts uninsured mortgage straight switches from the prescribed MQRhttps://www.osfi-bsif.gc.ca/en/guidance/guidance-library/osfi-exempts-uninsured-mortgage-straight-switches-prescribed-mqr-implements-portfolio-lti-limits
osfi.b20.renewal_no_stress_test · v2View in Codex →License: This definition is licensed under CC BY 4.0. Cite as: "B-20 Same-Lender Renewal Stress Test Exemption", BC Real Estate Glossary by Bronson Job, https://www.bronsonjob.com/glossary/b20-renewal-no-stress-test.
