The stress test rate you actually qualify at
The federal mortgage stress test floor is 5.25%. You qualify at the contract rate plus two points, or the floor, whichever is higher. Worked examples included.
There is no single "stress test rate" that applies to everyone. It's a rule applied to your lender's contract rate: you must qualify at whichever is higher, your contract rate plus 2 percentage points, or the 5.25% floor. Two borrowers offered different rates face different qualifying rates.
| Policy rate | 2.25% — since 2026-09-11 |
|---|---|
| Prime rate | 4.45% — as of 2026-09-09 |
| Posted 5-year fixed | 6.09% — as of 2026-09-09 |
| 5-year Government of Canada bond | 3.65% — as of 2026-09-11 |
| Stress-test floor | 5.25% — the minimum qualifying rate, regardless of your contract rate |
Your qualifying rate at a few example contract rates (contract rate + 2 points, or the 5.25% floor, whichever is higher):
| If your rate is | 3.5% | 4.5% | 5.5% |
|---|---|---|---|
| You qualify at | 5.5% | 6.5% | 7.5% |
Exceptions: a straight switch of an existing mortgage to a new lender at renewal, with no change in loan amount or amortization, is generally exempt from a fresh stress test under OSFI guidelines. Uninsured mortgages (20%+ down) follow the same contract-rate-plus-2-or-5.25% rule as insured ones. Confirm your specific situation with your lender, since product and program rules vary.
That contract-rate-plus-2-or-5.25% rule is what a lender uses to size how much mortgage a buyer qualifies for, not the rate they'll actually pay. The policy rate is 2.25% as of 2026-09-11, and the prime rate is 4.45% as of 2026-09-09, both well below any qualifying rate, which is the point of the test.
Why the gap between "qualify at" and "pay at" exists
OSFI introduced the stress test in 2018, specifically so a borrower who qualifies today can still afford their payment if rates rise before their next renewal. Right now that gap is unusually wide: the prime rate is 4.45% and the policy rate is 2.25%, both well below the roughly 7.25%–8% range most borrowers are actually tested at. That's by design, not a sign the rule is outdated. The test is meant to price in room for rates to move against a borrower over a 5-year term, not to reflect what they'll pay on day one.
It matters most right now for the wave of borrowers renewing mortgages taken out in 2020–2022 at rates near 1.5%: a straight renewal with no change in lender, loan amount, or amortization is generally exempt from a fresh stress test, but anyone switching lenders, increasing their loan, or buying new is tested at today's higher qualifying rate regardless of what rate they locked years ago.
Sources
- Bank of Canada — retrieved 2026-09-14
- Adapted from Bank of Canada data (Valet API), reproduced under the Bank of Canada's Terms of Use.