The mortgage stress test in Canada, in plain English

Lenders qualify you at the higher of your rate plus 2% or 5.25%. How the test works, when it does not apply at renewal, and the income you need.

Last checked November 8, 2026. Every rule below names its source; the official pages are listed at the end with their own dates.

In short

The qualifying rate is the greater of the contract rate plus 2% or 5.25% (OSFI Guideline B-20).
Lenders check that housing costs, and all debts, stay within a share of gross income at that rate.
Since November 21, 2024 it is not expected for an uninsured straight switch at renewal.

Mortgage calculator (Canada and USA)Mortgage Renewal Check Bank of Canada and Fed rates

The rule

OSFI, the federal regulator of banks, sets the minimum qualifying rate for uninsured mortgages as the greater of the mortgage contract rate plus 2% or 5.25%. Insured mortgages (less than 20% down) are qualified with the same test. The lender works out your payment at that higher rate, even though you pay the contract rate.

Live example: the test at today's posted rate

At the 5-year conventional mortgage rate of 6.19% (November 4, 2026), the qualifying rate would be the greater of 8.19% and 5.25%: 8.19%. On a $500,000 mortgage over 25 years, the payment is $3,255.72 a month at 6.19% and $3,876.87 at 8.19%; lenders check that you could afford the second.

Source: Bank of Canada, posted interest rates offered by chartered banks (5-year conventional mortgage rate, dated November 4, 2026). A posted rate; the rate a lender offers you can be different.

How lenders use it

At the qualifying rate, lenders compare your housing costs (mortgage payment, property tax, heating and half of any condo fees) and all your debt payments with your gross income. Our mortgage calculator uses 39% for housing costs and 44% for all debts, the limits used for insured mortgages, and shows the yearly income those limits imply.

At renewal

Renewing with the same lender does not require the test. Since November 21, 2024 OSFI does not expect lenders to apply it to an uninsured straight switch: moving the mortgage to another federally regulated lender at renewal with no increase in the loan or the amortization. See the renewal guide.

Questions

What is the stress test rate in Canada?

The greater of your contract rate plus 2% or 5.25%.

Does the stress test apply when I renew?

Not when you renew with your lender, and, since November 21, 2024, not for an uninsured straight switch to another federally regulated lender.

Do I pay the stress test rate?

No. It is only used to check that you qualify; you pay your contract rate.

How much income do I need for a mortgage?

It depends on the payment at the qualifying rate, your property tax, heating, condo fees and other debts. The mortgage calculator shows it.

Sources

Track prices, rates and your own numbers in one place

Free members get the live market board, the Market Screener, News & Global Markets and Housing Markets. No card needed, and your money always stays on your own exchange.

Create a free account

Last checked November 8, 2026. General information only - not financial, legal, tax or real estate advice. Rules change: confirm with the official source or a licensed professional before you act.