Mortgage stress test모기지 스트레스 테스트

What is it?

The mortgage stress test is a check lenders do before approving you: could you still pay if rates went up or your income went down? The lender calculates your payment at a rate higher than the one you will actually sign for, and your debt ratios (GDS and TDS) must still fit within its limits at that higher payment.

That higher rate is called the minimum qualifying rate (MQR). As of October 30, 2026 it is the greater of your contract rate plus 2% or 5.25%. For example, a 4.5% contract rate is tested at 6.5%, and a 2.9% rate is tested at 5.25%.

What you actually pay is based on your contract rate. The stress test is only used for the approval.

Who sets it?

OSFI reviews the buffer and floor for uninsured mortgages at least once a year and announces any change. Its December 12, 2023 announcement kept them unchanged.

How it works in Ontario

OSFI’s Guideline B-20 applies to federally regulated lenders (banks, federal trust companies and so on). Most Ontario buyers borrow from these lenders, so they go through the stress test.

Provincially regulated credit unions and private lenders are not directly covered by OSFI’s guideline. But an insured mortgage (less than 20% down) follows the same federal formula no matter who lends. Rules can differ by lender, so ask.

The ratios lenders check are usually GDS (housing costs as a share of income) and TDS (all debt payments as a share of income). For insured mortgages the regulations cap them at 39% and 44%, calculated with the payment at the stress-test rate.

How much less can you borrow?

Comparing how much the same monthly payment can borrow shows the effect. Here is someone who can pay $3,000 a month over a 25-year amortization (estimates for reference, semi-annual compounding).

The stress test cuts borrowing power by about $94,000, roughly 17%. Your real limit is set by the lender using your income, debts, property tax, heating and condo fees.

Example

Since November 21, 2024: switching at renewal

Before, moving your mortgage to another bank at the end of the term meant passing the stress test again. After rates rose, many people could not switch and had to accept their current lender’s terms.

Since November 21, 2024, OSFI no longer requires a set minimum qualifying rate for a “straight switch” of an uninsured mortgage to another federally regulated lender. The conditions: no increase in the loan amount or the remaining amortization (the balance may rise by up to $3,000 to cover costs such as penalties or fees). It must also be a stand-alone mortgage that you pay down over time. Readvanceable mortgages (which let you borrow again what you have paid off) and plans combined with a line of credit (HELOC) do not qualify. Taking out extra money (a refinance) does not qualify either.

The new lender still reviews your income and debts under the general principles of B-20. Only the set stress-test rate is dropped, not the review. The renewal rules for insured mortgages are set by the Department of Finance, so ask the lender you want to switch to.

What to watch out for

• A pre-approved amount already reflects the stress test. But if rates rise before final approval, the test rate rises too and your limit can shrink.
• With a variable rate, lenders usually test you at that variable rate plus 2%. A variable rate lower than the fixed rate can raise your limit a little, but your payments can rise if rates go up.
• Using a private lender to avoid the stress test can mean much higher rates and fees. FSRA says to treat private mortgages as a short-term solution with an exit plan.
• The formula (2% buffer, 5.25% floor) can change. Ask the lender what rate it is using to qualify you when you apply.