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Mortgage Stress Test Changes – What You Need to Know


Starting June 1, 2021, the minimum qualifying rate used for both the insured and uninsured mortgage stress tests will be increasing.
Whether you’re making a down payment of less than 20% or more than 20%, you will now have to prove you can afford payments based on your contract rate plus 2%, or 5.25%, whichever is higher. Currently, the minimum qualifying rate is 4.79%.

The changes were announced by the Office of the Superintendent of Financial Institutions and the Department of Finance and will reduce the maximum mortgage you qualify for by between 4-5%. That means if your current maximum mortgage is $400,000, it will fall to $382,400 on June 1 if you’re applying with a federally regulated institution. 

The higher stress test will not apply to your purchase if it was made before June 1 (with a signed purchase to offer).

Also, depending on your situation, I do have local lenders that are provincially regulated that still offer products with lower qualifying rates and requirements that may be a fit for your situation.