# How do GDS/TDS ratios impact renewals without a stress test?

> While the 2% buffer is gone, lenders still verify debt serviceability.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/how-do-gdstds-ratios-impact-renewals-without-a-stress-test

## Answer
| Item | Without Stress Test | With Stress Test |
|------|---------------------|------------------|
| Qualifying Rate | Contract (e.g., 4.25%) | Contract + 2% (6.25%) |
| HHI Required | ~20% Lower | Standard |
| Switch Friction | Low | High |

## Related guide
- https://ratellow.com/guides/no-stress-test-renewal

## Sources
- Northwood Mortgage – Explaining the Mortgage Stress Test in 2025 — https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/#Methodology