Mortgage Stress Test Canada 2026

Direct answer: For most new uninsured mortgages at federally regulated lenders, OSFI's current minimum qualifying rate is the greater of your mortgage contract rate plus 2% or 5.25%. In plain English: if your offered rate is 4.50%, the stress-test rate is 6.50%. If your offered rate is 3.00%, the floor makes the stress-test rate 5.25%.

Primary sources: OSFI: Minimum qualifying rate.

Run the payment side in the Mortgage Calculator or open the $500k mortgage payment benchmark, then compare the contract payment with the stress-tested payment before deciding what price range is comfortable.

Stress-test formula

Primary sources: OSFI: Minimum qualifying rate.

qualifying rate = max(contract rate + 2%, 5.25%)

OSFI describes the 2% amount as the buffer and 5.25% as the floor for uninsured mortgages. OSFI says it reviews the minimum qualifying rate at least annually.

Worked payment examples

These examples use a $500,000 mortgage, 25-year amortization and Canadian semi-annual mortgage compounding. They show payment pressure, not a full lender approval.

Contract rate	Contract payment	Stress-test rate	Stress-test payment
4.00%	About $2,630/mo	6.00%	About $3,199/mo
4.50%	About $2,767/mo	6.50%	About $3,349/mo
5.00%	About $2,908/mo	7.00%	About $3,502/mo

How GDS and TDS fit in

Primary sources: CMHC: Calculating GDS and TDS.

The stress-test rate feeds into debt-service ratios. CMHC's public debt-service guidance describes GDS as housing costs divided by monthly household income, and TDS as housing costs plus other debt payments divided by monthly household income. CMHC states that GDS must not exceed 39% and TDS must not exceed 44%.

Ratio	Includes	Common ceiling
GDS	Mortgage payment, property tax, heat and eligible condo fees	39%
TDS	GDS costs plus other monthly debt payments	44%

Important exception

Primary sources: OSFI: Straight-switch MQR exemption.

OSFI says it does not expect lenders to apply the prescribed minimum qualifying rate to uninsured straight switches at renewal when the borrower switches from one federally regulated lender to another with no increase to the loan amount or amortization period.

Common mistakes

• Using the contract payment only: lenders qualify at the stress-test rate, so the approval math can be tighter than your expected payment.
• Ignoring non-mortgage debt: car loans, credit cards and student loans affect TDS.
• Treating approval as affordability: a lender maximum can still leave too little room for savings, repairs or income shocks.

Ways to improve the numbers

1. Reduce other debt before applying, because it directly lowers TDS.
2. Increase down payment to reduce the mortgage amount.
3. Compare amortization choices, remembering that a lower payment usually means more total interest.
4. Use a lower personal budget than the lender maximum if repairs, child care, variable income or job risk are material.

Methodology and assumptions

Payment examples use the usecos Canadian mortgage formula with semi-annual compounding converted to an effective monthly rate, a 25-year amortization, and no property tax, heating, condo fee or other debt assumptions. The page explains federal-regulator rules and CMHC public debt-service guidance; lenders can apply additional underwriting policies. Verified July 29, 2026.

Sources: OSFI minimum qualifying rate for uninsured mortgages; CMHC debt-service calculator and GDS/TDS guidance; Interest Act, section 6.