The mortgage stress test affects how much many borrowers can qualify for, even when the actual contract rate is lower. Current OSFI guidance for uninsured mortgages uses the greater of the contract rate plus 2% or 5.25%, so affordability planning has to leave room for that gap.
Related pages: Book a mortgage call, Start your application, Contact our mortgage team, and Mortgage Rates.
Many buyers first notice the stress test when the amount they can qualify for feels lower than expected. It is one of the main reasons pre-approval should happen early.
The stress test can reduce maximum buying power, so it should be included in your search strategy from the beginning.
A lower contract rate may still not change qualification as much as expected if the stress-test floor still applies.
Homeowners refinancing also need to consider how qualification will look under the current rules.
The best response is not guesswork. It is knowing your likely budget, reviewing monthly comfort, and deciding whether to adjust purchase price, down payment, debt reduction, or timing.
A broker can help you understand the practical effect on your file before you make an offer or commit to a refinance strategy.
Share your income, debts, and property goal and we will help you understand the range that looks realistic before you move ahead.
Related pages: Book a mortgage call, Start your application, Contact our mortgage team, and Mortgage Rates.
