What is Mortgage Stress Test Rate?

If your mortgage is with a federally regulated lender such as chartered banks, all you need to do is to add 2% to your contract rate and then compare it to the Benchmark Rate set by the Bank of Canada. Currently, the qualifying rate is 5.25%. Whichever is higher, that will be your stress test rate (STR).

For example, if your contract rate is 3.25% or below, your STR will be 5.25%. Otherwise, add 2% to your rate.

The following short videos (in English & Persian) explains how are you affected by the stress test and what can be done?