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).

Is The Stress Test Changing In 2024?

The OSFI (which is in charge of the stress test for uninsured mortgages) recently announced that the stress test rates for uninsured mortgages will remain the same. Currently, the minimum qualifying rate is 5.25% or the contracted rate plus 2 points. Whichever is the higher. 

Furthermore, the finance department of the federal government (which is in charge of rates for insured mortgages) also announced that the minimum qualifying rate for insured mortgages will also remain the same.  

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?