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An uninsured mortgage carries no mortgage default insurance at all — because the down payment is 20% or more, or the file doesn’t qualify for insurance (a price above the insured cap, a rental property, or cash-back, for example) — and the lender sets its own qualifying rules within OSFI’s framework.
Yes, in almost every case: uninsured borrowers still qualify at the minimum qualifying rate — the greater of the contract rate plus 2 percentage points or 5.25% — under OSFI Guideline B-20. One notable exception: since November 21, 2024, OSFI no longer requires re-qualification at the minimum qualifying rate for a straight switch of an uninsured mortgage at renewal — same amount, same amortization, moving to a new lender.
Because there’s no insurer setting price caps or ratio ceilings, uninsured mortgages are the category that covers purchases above the insured price cap, most rental and non-owner-occupied properties, and refinances, all of which fall outside what CMHC, Sagen, or Canada Guaranty will insure.
Stress-tested by default: uninsured files are qualified at the minimum qualifying rate — the greater of contract rate + 2 percentage points or 5.25% — same as insured files, under OSFI Guideline B-20.
Switch exception since late 2024: as of November 21, 2024, a straight switch of an uninsured mortgage at renewal — same balance and amortization, new lender — doesn’t require re-qualification at the minimum qualifying rate.
No insurer price cap: uninsured mortgages aren’t limited by the $1.5 million insured purchase price cap, which is why higher-value purchases and most rentals fall into this category.
Lender-set ratios and amortization: GDS/TDS limits and maximum amortization on uninsured files are set by the individual lender under B-20, not by CMHC, Sagen, or Canada Guaranty rules.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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