Key takeaways
- Qualifying rate: the greater of contract + 2% or 5.25%.
- Applies to insured and uninsured mortgages at federally regulated lenders.
- Uninsured straight switches at renewal no longer need it.
What is the stress test?
A rule from OSFI (and the Department of Finance for insured mortgages) that checks you could still afford payments if rates rose.
What rate do I qualify at?
Contract rate 4.09% → qualifying rate 6.09%
Payment on $550,000 at 4.09%: $2,920/mo
Payment used to qualify (6.09%): $3,548/mo
Do renewals and switches need it?
Not an uninsured straight switch at renewal (same balance and amortization) at a federally regulated lender. Adding money or extending the amortization requires it.
How to pass the stress test
- Pay down debts to lower your TDS
- Add a co-borrower
- Choose a longer amortization where allowed
- Consider credit unions or private lenders not bound by OSFI rules
MBWritten by the MortgageBids.ca editorial team. Last updated October 7, 2026. General information only; your lender confirms terms for your file.
Sources
- OSFI: Guideline B-20, residential mortgage underwriting (checked October 7, 2026)
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