In a win for lenders and consumers alike, the government is amending the mortgage insurance rules to eliminate its mortgage stress test on low-ratio (a.k.a. "bulk insured") mortgages that switch from a federally regulated lender to any other lender at renewal.

The move, which is effective today, December 16, lets insurable borrowers with higher #GDS#/#TDS# ratios play the field at renewal. These low-ratio mortgagors can now switch to the most competitive lenders and qualify at the contract rate instead of their contract rate plus 200 bps (or 5.25%, whichever is higher).

The change is significant for renewing borrowers who were trapped by the stress test. The reason is, the insurable rates they'll now have access to are often better than:

(A) uninsured rates (especially on lower LTV loans), and
(B) low-ratio renewal offers.

That said, lenders we speak to don't expect tremendous uptake, given high customer retention rates and increasingly competitive renewal offers.

The fine print

Forecasting 2025 interest rates is starting to feel like reading tea leaves in a hurricane.

When economic uncertainty reaches these levels, mortgage advisors need time-tested strategies that don't depend as much on economists' dubious fortune-telling abilities—or the market's, for that matter.

One of this author's go-to analytical frameworks is a mortgage planning acronym I coined in the BlackBerry era 14 years ago. It's called I.D.E.A.S., and it's just as applicable for term selection today.

For a while there, it seemed about as likely as finding a unicorn in a haystack, but now it's confirmed. Mortgage finance companies (MFCs) can accept uninsured straight switches qualified at the contract rate.

One of the nation's largest MFCs, First National, announced the move on Thursday, reportedly after getting confirmation from its bank funders. MCAP and others are expected to send out similar notifications soon.

There's speculation in lending circles that Monday's Fall Economic Statement might include one or more mortgage policy updates.

Lenders have been hoping for two specific default insurance tweaks:

The marketing prowess of Canadian banks is legendary, akin in many ways to the dominance of Amazon in online shopping. And nowhere is that more evident than on Google.

Consider the search volume of Canada's biggest bank by assets, RBC. When you compare it to America's largest bank, JP Morgan Chase (JPMC), for example, you see something unintuitive.