Thu Sep 26 13:31:32 UTC 2024: ## Stress Test for Uninsured Mortgages Scrapped by Regulator

**OTTAWA** – The Office of the Superintendent of Financial Institutions (OSFI) has announced that it will no longer require borrowers with uninsured mortgages to undergo a stress test when switching lenders.

This decision comes after feedback from the industry and Canadians who highlighted an imbalance between insured and uninsured mortgage holders at renewal time. The OSFI also cites data suggesting that the risks the stress test was intended to address have not materialized significantly.

The stress test, previously mandatory for federally regulated financial institutions, aimed to ensure borrowers could manage their mortgage payments even in the face of financial shocks such as rising interest rates or increased household expenses.

The decision follows a recommendation from Canada’s Competition Bureau in March, which argued the stress test was not applied evenly and unfairly disadvantaged uninsured mortgage borrowers.

The change, set to take effect on November 21st, is expected to simplify the process of switching lenders for uninsured mortgage holders. OSFI is currently working with financial institutions to ensure a smooth transition.

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