In November 2023, the federal government announce that homeowners with insured mortgages no longer be stress tested when they renew their mortgage with a different lender.

Prior to the announcement, lenders had little reason to offer mortgage clients competitive rates upon renewal. Borrowers could choose to accept their current lender’s offer or apply with a new one, where the mortgage stress test would add another 2% to their minimum qualifying rate.

With that risk in mind, borrowers tend to renew with their original lender and accept the more expensive renewal rates.

But with the Canada Mortgage Charter now in effect, waiving the stress test on insured mortgage renewals should inject more competition to the market and theoretically lead to lower renewal rates across the board.

To make best use of the increased choice, you may want to consider working with a mortgage broker like myself, who can help you access and compare a greater number of mortgage offers.

Call me today for a free mortgage check up!