Why switching lenders can mean full re‑qualification

In Canada, when you stay with your current lender at renewal and don’t increase your mortgage amount or change the amortization, many lenders will treat it as a simple renewal with limited underwriting.

However, when you switch to a new lender, that new lender usually treats it like a new mortgage application. That’s where full re‑qualification comes in.

They may need to:

• Review your income and employment

• Re-check your credit

• Confirm your debts and monthly obligations

• Ensure you meet their current mortgage rules and the federal stress test