The mortgage stress test checks that you could still afford your payments at a higher rate than the one you’ll actually pay. Enter your figures to see your qualifying rate and whether your debt ratios pass at that rate.
The qualifying rate
- You qualify at the greater of your contract rate plus 2% or 5.25%.
- It applies to uninsured mortgages (20% or more down) at federally regulated lenders, under OSFI Guideline B-20.
- Insured mortgages (under 20% down) are qualified at the same rate under the federal mortgage insurance rules, the Eligible Mortgage Loan Regulations made by the Minister of Finance.
- Your debt service ratios are calculated at that qualifying rate, not your actual rate.
The floor only matters when rates are low: it sets the qualifying rate only for contract rates under 3.25%. Some examples:
| Contract rate | Qualifying rate |
|---|---|
| 3.00% | 5.25% |
| 4.05% (average new insured 5-year fixed, July 2026) | 6.05% |
| 4.49% (average new uninsured 5-year fixed) | 6.49% |
The test has applied to insured mortgages since October 17, 2016 and to uninsured ones at federally regulated lenders since January 1, 2018; the 5.25% floor dates from June 1, 2021.
What the test adds to the income you need
Lenders measure your debt ratios against the payment at the qualifying rate, not the one you will make. The gap between those two payments, divided by CMHC’s 39% housing-cost limit, is the extra income the test asks for. With the minimum down payment, at the average insured contract rate and this site’s tax and heat assumptions:
| Home price, minimum down | Payment at the contract rate | Payment at the qualifying rate | Income needed with the test | Income needed at the contract rate | Extra income the test asks for |
|---|---|---|---|---|---|
| $400,000 | $2,090 | $2,540 | $93,000 | $79,100 | $13,900 |
| $600,000 | $3,107 | $3,777 | $136,200 | $115,600 | $20,600 |
| $800,000 | $4,097 | $4,980 | $178,400 | $151,200 | $27,200 |
| $1,000,000 | $5,086 | $6,184 | $220,500 | $186,700 | $33,800 |
At every price the qualifying payment is the same share higher than the real one, so the extra income scales with the loan. On a $600,000 home the test asks for about $20,600 a year more than the actual payment would. A household with exactly the income in the fourth column could still keep its housing costs within the 39% limit at a 6.05% rate.
Renewals and switches
Moving a mortgage to a new lender at renewal is where the rules get specific:
- A refinance is stress-tested like a new mortgage: since November 21, 2024, OSFI exempts a stand-alone uninsured mortgage from the test only when it moves at renewal from one federally regulated lender to another with no increase in the remaining amortization and no increase in the loan amount beyond $3,000 for the costs of the move (a straight switch).
- The straight-switch exemption covers only a stand-alone uninsured mortgage: one that amortizes, isn't readvanceable and isn't part of a combined loan plan.
- In a straight switch the balance can rise by up to $3,000 to cover costs of the move such as penalties or fees, but no equity can be taken out.
The stress test guide covers the history and the rules in more detail.
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and October 2, 2026. How we check facts.
- Bank of Canada: Mortgage rates, fixed 5 years and over: insured residential mortgages, funds advanced (data series)
- Bank of Canada: Mortgage rates, fixed 5 years and over: uninsured residential mortgages, funds advanced (data series)
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- CMHC: Calculating GDS / TDS
- CMHC: CMHC Purchase
- CMHC: Home Start
- Department of Finance Canada: Archived
- Department of Finance Canada: Boldest mortgage reforms in decades come into force today
- Department of Finance Canada: Government announces boldest mortgage reforms in decades to unlock homeownership for…
- Department of Finance Canada: “Straight Switches” and portfolio insurance
- Financial Consumer Agency of Canada: How much you need for a down payment
- Justice Laws (Canada): Bank Act
- Justice Laws (Canada): Eligible Mortgage Loan Regulations
- OSFI: Minimum qualifying rate for uninsured mortgages
- OSFI: Final Revised Guideline B-20: Residential Mortgage Underwriting Practices and Procedures
- OSFI: Amendments to the minimum qualifying rate for uninsured mortgages
- OSFI: OSFI exempts uninsured mortgage straight switches from the prescribed MQR and…
- OSFI: Loan-to-income limits for uninsured mortgage portfolios