Process and paperwork
Straight switch
Moving your mortgage to a new lender at renewal without changing the balance or the amortization, and since November 2024, without a stress test if it's uninsured.
A straight switch moves the same balance, over the same remaining amortization, to a different lender at a different rate. It's a full application, with your income, credit and property all verified, but it isn't a refinance.
Since November 2024, an uninsured straight switch isn't stress-tested again at the minimum qualifying rate. That removed the advantage your current lender used to have at renewal.
Two conditions matter: the balance can't go up and the amortization can't be extended. Change either one and the transaction becomes a refinance, which is stress-tested and capped at 80% loan-to-value.
Costs are usually small. Appraisals are often waived, and the new lender commonly covers legal and discharge costs to win your business. Ask what's covered before you commit.
Related terms
Renewal
The end of a mortgage term, when you sign a new one with your current lender, switch to a new lender, or pay the mortgage off.
Qualifying rate
The rate lenders test you at: the greater of your contract rate plus 2 percentage points, or 5.25%.
Refinance
Replacing your mortgage with a larger one and taking the difference in cash, capped at 80% of the property's value.
This definition describes how the term is used in Canadian residential mortgage lending. It’s general information, not advice on your file. Rules, thresholds and rates change. Where a figure is quoted, it’s current as of the date shown on the related guide.
Sharp rates. The full picture.
Ask Daniel about this term
Daniel De Sousa, Mortgage Associate, can walk you through it before you sign anything. Or get a rate quote: 6 questions, about two minutes, and no credit check to start.
No credit check, and no commitment.