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
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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 a mortgage broker who can place you with 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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