# How does the stress test differ for fixed vs. variable in 2026?

> Both are stress-tested at the higher of the benchmark (5.25%) or the contract rate + 2%.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/how-does-the-stress-test-differ-for-fixed-vs-variable-in-2026

## Answer
Both are stress-tested at the higher of the benchmark (5.25%) or the contract rate + 2%. However, variable rates often have a higher 'Floor' in the advisor's math because of potential intra-term hikes.\n\n### Stress Test Comparison (2026)\n\n| Stress Test Type | Calculation | Regulatory Context |\n|---|---|---|\n| **Fixed Stress Test** | max(5.25%, Contract + 2%) | Standard method for fixed-rate qualification. |\n| **Variable Stress Test** | max(5.25%, Contract + 2%) | Standardized since 2024 to simplify qualification. |\n| **Insured Renewal Switch** | **Exempt** | No re-stress test required at renewal as of late 2024. |

## Related guide
- https://ratellow.com/guides/lock-in-fixed-vs-variable

## Sources
- Final Capital Adequacy Requirements Guideline (2026) - OSFI — https://www.osfi-bsif.gc.ca/en/news/backgrounder-final-capital-adequacy-requirements-guideline-2026