Stress Test
A mortgage qualifying rule requiring borrowers to prove they can afford payments at a rate higher than their actual contract rate — the greater of 5.25% or contract rate plus 2%.
The mortgage stress test, codified in OSFI's B-20 Residential Mortgage Underwriting Practices guideline, requires federally regulated lenders to qualify borrowers at a rate higher than their contract rate. The current Minimum Qualifying Rate (MQR) is the greater of 5.25% or the borrower's contract rate plus 2 percentage points. The stress test applies to both insured and uninsured mortgages. OSFI's November 2024 straight-switch rule removed the stress test requirement when switching lenders at renewal on uninsured mortgages, as long as the amount, amortization, and payment schedule stay unchanged — a major competitive change.
Related Terms
The stress test rate — the greater of 5.25% or your contract rate plus 2 percentage points — used by lenders to qualify you for a mortgage.
The Office of the Superintendent of Financial Institutions' Residential Mortgage Underwriting Practices and Procedures guideline — the source of the stress test and most Canadian mortgage qualifying rules.
OSFI's November 2024 policy change that eliminated the stress test for uninsured mortgage renewals when switching lenders with unchanged amount, amortization, and payment schedule.
Related Guides
- 2026 Canadian Mortgage Stress Test Explained: OSFI Rules, Renewal Exemptions & Straight Switches
- Switching Mortgage Lenders at Renewal in Canada: 2026 Straight-Switch Guide (No Stress Test)
- 2026 Mortgage Renewal Stress Test Exemptions in Canada: No Stress Test for Straight Switches
- Self-Employed Mortgage Guide Canada 2026: BFS Income, Stress Tests & 30-Year Amortization
Related FAQs
- How does the stress test affect my 2026 renewal options?
- How does the stress test differ for fixed vs. variable in 2026?
- How does 'stress testing' affect the stability of financial institutions?
- What are the regulatory rules for renewal stress test exemptions?
- What are the 'straight-switch' criteria to avoid the 2026 stress test?