The Toronto Regional Real Estate Board (TRREB) commends the Office of the Superintendent of Financial Institutions (OSFI) for its recent decision to eliminate the mortgage stress test requirement for uninsured borrowers switching lenders at renewal. This change is a significant step forward in ensuring that all Canadian homeowners, regardless of whether their mortgages are insured or uninsured, have access to competitive mortgage products and rates.

For years, TRREB has worked with the Canadian Real Estate Association in advocating for a balanced approach to mortgage stress testing, emphasizing the need to address the disparity between insured and uninsured mortgages at renewal. We have repeatedly pointed out that it doesn’t make sense to impose this requirement – particularly on those borrowers whose larger down payments have exempted them from needing to purchase mortgage insurance. 

By removing this barrier, OSFI has levelled the playing field and empowered homeowners to explore the best possible financial options without the added burden of requalification under stringent stress test conditions.

This decision will provide much-needed relief to many homeowners, particularly in today’s challenging economic environment of high interest rates and increasing household expenses. It will enable borrowers to take advantage of competitive rates and terms, fostering a more dynamic and consumer-friendly mortgage market. It will increase competition among lenders to the benefit of homeowners. 

TRREB appreciates OSFI’s responsiveness to feedback from industry stakeholders and consumers alike. We look forward to continued collaboration between regulators and the real estate industry to support the long-term affordability and accessibility of housing in Canada.

TRREB remains steadfast in our advocacy for both existing and aspiring Greater Toronto Area homeowners. We are optimistic that this change will have a meaningful impact on housing affordability, consumer choice, and financial flexibility for Canadians.

Jennifer Pearce
TRREB President