The Globe and Mail reports in its Thursday edition that the Office of the Superintendent of Financial Institutions will no longer require banks to apply the mortgage stress test on borrowers who switch lenders when renewing their loan. The Globe's Rachelle Younglai writes that this change is aimed at making it easier for borrowers with uninsured mortgages to switch to a different bank at renewal. It is also expected to encourage banks to offer lower mortgage rates to retain their current borrowers and attract new customers. The new policy is set to take effect on Nov. 21 and will be implemented alongside other relaxed mortgage policies. This change is seen as a significant victory for the mortgage industry, which had been advocating for this relief in response to rising interest rates. Coupled with the Bank of Canada's interest rate cuts, these policy changes are anticipated to stimulate the sluggish real estate market. Currently, homeowners with insured mortgages are exempt from the mortgage stress test on straight switches because the insurer is protecting the bank if the homeowner misses mortgage payments. Until now, however, borrowers with uninsured mortgages have still had to requalify if they switched lenders.