The Stress Test in 2026: Still Here, Still Binding

Current status

OSFI has kept its mortgage qualifying rate framework unchanged through 2026: every federally regulated lender must still qualify borrowers at the higher of their contract rate plus 2 percentage points, or a fixed 5.25% floor. There's been no formal announcement of the stress test being relaxed, paused, or removed, despite the policy rate falling substantially from its 2023 peak. See our full explainer on how the stress test works for the mechanics.

Why it bites harder at today's rates than it used to

When contract rates were very low, the fixed 5.25% floor was almost always the higher, binding number — "contract rate plus 2%" rarely exceeded it. With typical contract rates now in the mid-4% to low-5% range, "contract rate plus 2%" frequently exceeds 5.25% and becomes the binding qualifying rate instead. In practical terms, buyers today are often being qualified at a rate close to 7%, even though their actual payment is based on a rate two full percentage points lower — a gap that surprises people who assume falling rates automatically translate into a bigger approved amount.

Is there any sign it will change?

OSFI reviews the stress test framework periodically but has not signalled an imminent change as of September 2026. The test was designed to be rate-environment-independent by construction — it's meant to confirm affordability at a rate meaningfully higher than today's, specifically so it keeps functioning as intended whether rates are high or low. Buyers should plan around the current rules holding rather than anticipate relief, and check exactly where they land using the affordability calculator, which applies both sides of the test automatically.

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