- Qualifying rate = the greater of your contract rate + 2 percentage points or 5.25%.
- It applies to uninsured mortgages (OSFI) and insured mortgages (federal government) alike.
- Since November 21, 2024, a straight switch to a new lender at renewal no longer requires the stress test.
- OSFI also caps each lender’s share of new uninsured mortgages above 4.5 times the borrower’s income, at the portfolio level.
The rule
OSFI’s page on the minimum qualifying rate (MQR) for uninsured mortgages sets it at the greater of the mortgage contract rate plus 2% or 5.25%, and says OSFI reviews the floor and buffer at least annually. The page was last modified January 29, 2026. The last dedicated OSFI announcement we found confirming the level is from December 12, 2023, and OSFI’s January 2026 quarterly release said its existing B-20 debt-service expectations continue.
For insured mortgages (less than 20% down) the federal government applies the same formula, and CMHC uses it when calculating your GDS and TDS ratios. FCAC’s consumer guide states it for both: the higher of 5.25% or your negotiated rate plus 2%.
| Rate you are offered | Contract + 2 | Qualifying rate |
|---|---|---|
| 2.99% | 4.99% | 5.25% (floor) |
| 3.49% | 5.49% | 5.49% |
| 4.39% | 6.39% | 6.39% |
| 5.19% | 7.19% | 7.19% |
What the test checks: GDS and TDS
The lender calculates your payment at the qualifying rate, adds property tax, heating and (for condos) half the fees, and divides by your gross income. That is your gross debt service ratio (GDS). Add your other debt payments and you get total debt service (TDS).
CMHC’s limits for insured mortgages are 39% GDS and 44% TDS, with a minimum credit score of 600 for at least one borrower. FCAC gives the same 39% and 44% as guidance. For uninsured mortgages each bank sets its own limits within OSFI’s expectations.
Try your own numbers in the stress test calculator.
Renewals and switches
If you renew with your current lender, you are not re-qualified. Since November 21, 2024 OSFI no longer prescribes the MQR for uninsured straight switches: moving your mortgage to a new lender at renewal with no increase in the amount or amortization (OSFI allows up to $3,000 to be added for transfer costs).
For insured mortgages, the federal government announced on December 12, 2023 that borrowers do not have to requalify when they switch lenders at renewal, and restated it when the December 15, 2024 reforms took effect. This makes it much easier to take a better offer from another bank at renewal; see the renewal checklist.
Loan-to-income limits
Since each lender’s 2025 fiscal year, OSFI has applied a loan-to-income (LTI) limit: a cap on the share of a lender’s new uninsured mortgages that exceed 4.5 times the borrower’s income. It is set per institution and measured across the portfolio, not applied to each loan, and the caps for individual banks are not published. OSFI said in January 2026 that the framework continues.
In practice: a high multiple of income is not automatically refused, but a bank that is near its cap may be more selective.
Rules change. Every figure on this page links to the official source and shows when we checked it. If something looks out of date, tell us and we will re-check.
Frequently asked questions
Does the stress test raise my mortgage rate?
No. It only affects how much you can borrow. Your payments are based on the contract rate you agree to.
Do credit unions use the stress test?
OSFI’s rule covers federally regulated lenders. Provincially regulated credit unions follow their provincial regulator’s guidance, which may differ; insured mortgages from any lender follow the federal insured rules.
When will the stress test change?
OSFI says it reviews the floor and buffer at least annually. Check the date on OSFI’s page; we re-check it on every update of this site.
Sources
- Minimum qualifying rate for uninsured mortgages — OSFI, checked Oct 31, 2026
- OSFI maintains minimum qualifying rate for uninsured mortgages — OSFI, checked Oct 31, 2026
- OSFI quarterly release, January 2026 — OSFI, checked Oct 31, 2026
- OSFI exempts uninsured mortgage straight switches from the prescribed MQR and implements portfolio LTI limits — OSFI, checked Oct 31, 2026
- Loan-to-income limits for uninsured mortgage portfolios — OSFI, checked Oct 31, 2026
- Statement on the Canadian housing market (insured qualifying rate, switches) — Department of Finance Canada, checked Oct 31, 2026
- Boldest mortgage reforms in decades come into force today — Department of Finance Canada, checked Oct 31, 2026
- CMHC Purchase: homeowner mortgage loan insurance — CMHC, checked Oct 31, 2026
- Preparing to get a mortgage (stress test, GDS/TDS) — FCAC, checked Oct 31, 2026
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.