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A switch (or transfer) is moving an existing mortgage balance to a new lender at renewal, at the same principal amount and remaining amortization, without increasing the loan or accessing equity. Since November 21, 2024, OSFI does not require re-qualification at the minimum qualifying rate for a straight switch of an uninsured mortgage.
A switch (also called a transfer) moves the existing balance and remaining amortization to a new lender at renewal without increasing the loan amount or accessing equity. Because nothing about the loan itself is changing except who holds it, lenders treat switches differently from a full refinance.
Since November 21, 2024, that difference matters even more: OSFI does not require re-qualification at the minimum qualifying rate for a straight switch of an uninsured mortgage, provided the amount and amortization don’t change.
One wrinkle: a mortgage registered as a collateral charge generally can’t be switched in the simple sense — it typically needs to be discharged and re-registered with the new lender, which adds legal costs and time that a standard-charge switch wouldn’t need.
Straight-switch exemption: as of November 21, 2024, OSFI does not require a borrower to requalify at the minimum qualifying rate for a straight switch of an uninsured mortgage — same amount, same amortization, new lender.
Collateral charges complicate switching: a mortgage registered as a collateral charge generally cannot be simply switched; it typically needs to be discharged and re-registered with the new lender.
Insured status carries over: default insurance on an insured mortgage moves with the switch as long as the amount and amortization don’t increase.
Who arranges it: mortgage agents (Ontario, FSRA), submortgage brokers (BC, BCFSA), mortgage associates (Alberta, RECA), and courtiers hypothécaires (Quebec, AMF) shop switch offers across lenders on the client’s behalf.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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