History of the mortgage stress test in Canada
Canada's stress test grew in steps: insured variable borrowers were held to five-year fixed standards in 2010, insured loans were tested at the posted 5-year rate from October 2016, uninsured loans at federally regulated lenders joined in 2018, and since June 1, 2021 both use contract + 2 points or 5.25%. Straight switches at renewal became exempt in 2023–2024.
What qualifying rate were borrowers tested at?
The chart applies the rules in force each month to the Bank of Canada's average rate on new 5-year-plus fixed mortgages. It shows the rate a typical borrower was actually tested at, which rule summaries don't show: the buffer has not always been 2 points.
Show the numbers
| Uninsured: qualifying rate | Uninsured: average contract rate | Insured: qualifying rate | Posted 5-year rate (benchmark 2016–2021) | |
|---|---|---|---|---|
| 2015-01 | 3.09% | 3.09% | 3.06% | 4.79% |
| 2015-04 | 2.80% | 2.80% | 2.76% | 4.64% |
| 2015-07 | 2.74% | 2.74% | 2.71% | 4.64% |
| 2015-10 | 2.76% | 2.76% | 2.70% | 4.64% |
| 2016-01 | 2.86% | 2.86% | 2.78% | 4.64% |
| 2016-04 | 2.80% | 2.80% | 2.76% | 4.64% |
| 2016-07 | 2.59% | 2.59% | 2.58% | 4.74% |
| 2016-10 | 2.57% | 2.57% | 2.54% | 4.64% |
| 2017-01 | 2.72% | 2.72% | 4.64% | 4.64% |
| 2017-04 | 2.81% | 2.81% | 4.64% | 4.64% |
| 2017-07 | 2.67% | 2.67% | 4.84% | 4.84% |
| 2017-10 | 3.08% | 3.08% | 4.99% | 4.99% |
| 2018-01 | 5.33% | 3.33% | 5.14% | 5.14% |
| 2018-04 | 5.43% | 3.43% | 5.14% | 5.14% |
| 2018-07 | 5.50% | 3.50% | 5.34% | 5.34% |
| 2018-10 | 5.65% | 3.65% | 5.34% | 5.34% |
| 2019-01 | 5.77% | 3.77% | 5.34% | 5.34% |
| 2019-04 | 5.40% | 3.40% | 5.34% | 5.34% |
| 2019-07 | 5.19% | 2.96% | 5.19% | 5.19% |
| 2019-10 | 5.19% | 2.85% | 5.19% | 5.19% |
| 2020-01 | 5.19% | 2.97% | 5.19% | 5.19% |
| 2020-04 | 5.04% | 2.71% | 5.04% | 5.04% |
| 2020-07 | 4.94% | 2.46% | 4.94% | 4.94% |
| 2020-10 | 4.79% | 2.05% | 4.79% | 4.79% |
| 2021-01 | 4.79% | 1.96% | 4.79% | 4.79% |
| 2021-04 | 4.79% | 2.03% | 4.79% | 4.79% |
| 2021-07 | 5.25% | 2.28% | 5.25% | 4.79% |
| 2021-10 | 5.25% | 2.22% | 5.25% | 4.79% |
| 2022-01 | 5.25% | 2.61% | 5.25% | 4.79% |
| 2022-04 | 5.26% | 3.26% | 5.25% | 4.99% |
| 2022-07 | 6.05% | 4.05% | 5.97% | 6.14% |
| 2022-10 | 7.01% | 5.01% | 6.85% | 6.49% |
| 2023-01 | 7.20% | 5.20% | 7.02% | 6.49% |
| 2023-04 | 7.08% | 5.08% | 6.89% | 6.49% |
| 2023-07 | 7.31% | 5.31% | 7.02% | 6.49% |
| 2023-10 | 7.79% | 5.79% | 7.54% | 7.04% |
| 2024-01 | 7.67% | 5.67% | 7.27% | 6.89% |
| 2024-04 | 7.30% | 5.30% | 6.92% | 6.84% |
| 2024-07 | 7.15% | 5.15% | 6.82% | 6.79% |
| 2024-10 | 6.82% | 4.82% | 6.39% | 6.49% |
| 2025-01 | 6.59% | 4.59% | 6.29% | 6.49% |
| 2025-04 | 6.30% | 4.30% | 5.98% | 6.49% |
| 2025-07 | 6.27% | 4.27% | 5.95% | 6.09% |
| 2025-10 | 6.40% | 4.40% | 5.97% | 6.09% |
| 2026-01 | 6.33% | 4.33% | 5.94% | 6.09% |
| 2026-04 | 6.17% | 4.17% | 5.95% | 6.09% |
| 2026-07 | 6.49% | 4.49% | 6.05% | 6.09% |
| 2026-08 | 6.58% | 4.58% | 6.12% | 6.09% |
Three things stand out. Before 2018, a 5-year fixed borrower with 20% down was qualified at the rate they'd pay. From 2018 to mid-2021 the floor was the posted rate, which sat about 2 points above what people paid. And in the low-rate years of 2021 and early 2022, the 5.25% floor mattered: the widest gap between the uninsured average rate and the qualifying rate since 2018 was 3.11% points in June 2021, when the average uninsured rate was 2.14%.
Uninsured average: Source: Bank of Canada, Effective rate on new uninsured fixed mortgages, 5 years and over (series V122667786), effective August 1, 2026. Checked .Posted 5-year rate: Source: Bank of Canada, Posted conventional mortgage rate, 5-year (series V80691335), effective October 28, 2026. Checked .The terms this page uses
- Qualifying rate
- The rate a lender tests you at. Today: the greater of the contract rate + 2 points or 5.25%.
- Posted 5-year rate (the old benchmark)
- The most common 5-year rate posted by the six largest banks, published weekly by the Bank of Canada. A list price, not what most people pay.
- Insured (high-ratio and low-ratio)
- Mortgages with default insurance. High-ratio means under 20% down; low-ratio loans are insured by the lender in bulk (portfolio insurance).
- Guideline B-20
- OSFI's mortgage underwriting rules for banks and other federally regulated lenders. Its qualifying rate for uninsured loans began January 1, 2018.
How much did the rule changes matter to one household?
The chart shows rates. This shows what they did to a budget: one household, never changing, tested in four different months under the rule then in force.
A household earning $146,000, with $260,000 down and $480 a month of other debts, taking an uninsured 5-year fixed mortgage at each month's Bank of Canada average rate over 25 years.
| Household income | $146,000Held the same in every era |
|---|---|
| Down payment | $260,00020%+ at every price below, so the loan is uninsured |
| Other debts | $480 a month |
| Property tax, heating | 0.8% of price a year, $100 a monthOur planning estimates, held constant |
| January 2017 | $1,110,6002.72% average, tested at 2.72%. No buffer for uninsured loans yet: tested at the contract rate |
| January 2019 | $905,3003.77% average, tested at 5.77%. B-20: contract + 2 points or the posted 5-year rate |
| January 2022 | $934,8002.61% average, tested at 5.25%. Contract + 2 points or the 5.25% floor |
| August 2026 (today's rule) | $863,1004.58% average, tested at 6.58%. Range across the four months: $863,100 to $1,110,600 |
The household's income never changes, yet its limit moves by $247,500. Rates explain part of that, and the rule explains the rest. Qualified at its own rate in every month, the same ratios would have allowed $1,110,600 (January 2017), $1,030,500 (January 2019), $1,119,700 (January 2022), $975,900 (August 2026). The test took the most in January 2022, $184,900, when the 5.25% floor sat 2.64 points above the average rate.
Each era opens in the calculator: January 2017 (lender set to qualify at the contract rate), January 2019 (lender's own rate set to that month's 5.77%) and January 2022 (today's federal test, where the floor applies). Real buyers' incomes and prices moved too; this holds them still to isolate the rule.
Open today's case in the calculator →Computed November 1, 2026.
Every change to the qualifying rate since 2010
- Insured borrowers must meet the standards for a five-year fixed-rate mortgage, even if they choose a variable rate or a shorter term. Government of Canada
- All new high-ratio insured mortgages qualify at the greater of the contract rate or the Bank of Canada's 5-year conventional posted rate (low-ratio insured loans followed on November 30, 2016). Department of Finance Canada
- OSFI Guideline B-20: uninsured mortgages at federally regulated lenders qualify at the greater of the contract rate + 2 points or the Bank of Canada 5-year benchmark. Renewals with the same lender are not retested. OSFI
- Ottawa announces a new insured benchmark (weekly median insured 5-year rate + 2 points) for April 6, 2020; it was suspended when the pandemic hit and never took effect. Department of Finance Canada
- OSFI and the federal government both move to the greater of the contract rate + 2 points or 5.25%, for uninsured and insured mortgages. OSFI
- The Canadian Mortgage Charter: insured mortgage holders switching lenders at renewal shouldn't have to requalify at the minimum qualifying rate. Department of Finance Canada
- OSFI stops prescribing the qualifying rate for uninsured straight switches to another federally regulated lender at renewal, and starts loan-to-income portfolio limits. OSFI
- Insured price cap rises to under $1.5 million; 30-year insured amortization for all first-time buyers and new builds. Department of Finance Canada
- Low-ratio (portfolio-insured) straight switches written into federal regulation: no requalification, same amortization, up to $3,000 added for costs, no equity take-out. Department of Finance Canada
- OSFI keeps the qualifying rate and loan-to-income limits, and consults on folding B-20 into a single credit-risk guideline (no change to the qualifying rate proposed). OSFI
- Quebec's AMF revises its residential lending guideline for caisses and Quebec trust companies; it keeps contract + 2 points or 5.25%, with no straight-switch exemption. Autorité des marchés financiers (Québec)
How did the rules differ for insured and uninsured loans?
For most of the history the two kinds of loan were tested differently. They have only matched since June 2021:
| Period | Insured (under 20% down, plus portfolio-insured) | Uninsured (20%+ down) at federally regulated lenders |
|---|---|---|
| April 19, 2010 to October 16, 2016 | 5-year fixed: the contract rate. Variable or shorter terms: five-year fixed standards. | 5-year fixed: the contract rate. |
| October 17, 2016 to December 31, 2017 | Greater of the contract rate or the posted 5-year rate (high-ratio from October 17; low-ratio from November 30, 2016). | 5-year fixed: the contract rate. |
| January 1, 2018 to May 31, 2021 | Greater of the contract rate or the posted 5-year rate. | Greater of the contract rate + 2 points or the posted 5-year rate. |
| Since June 1, 2021 | Greater of the contract rate + 2 points or 5.25%. | Greater of the contract rate + 2 points or 5.25%. |
| Straight switch at renewal | Not retested: Mortgage Charter (November 21, 2023); low-ratio in regulation from December 16, 2024. | Not retested when moving to another federally regulated lender, from November 21, 2024. |
Renewals with the same lender have not been retested under B-20 since it took effect. Provincially regulated credit unions follow their own regulator for uninsured loans; see the province page.
One consequence: a buyer with 20% down at a bank in 2017 faced no buffer at all on a 5-year fixed, while a buyer with 5% down the same year was tested at the posted rate. The 2018 B-20 change closed that gap, and the 2021 change made the two tests identical.
What was the "benchmark rate"?
From October 2016 (insured) and January 2018 (uninsured) until June 2021, the qualifying-rate floor was the Bank of Canada's 5-year conventional mortgage rate. Despite the name it was not a Bank of Canada policy rate. It is the statistical mode of the 5-year rates posted by the six largest banks, with tie-break rules, published weekly. Because big banks post rates well above what they actually charge, it worked as a buffer of roughly 2 points on top of typical contract rates.
The posted rate still exists: 6.09% in August 2026. It no longer plays any part in the federal stress test, though Alberta's last published credit-union guidance (2018) still pointed to it; see the province table.
How the Bank of Canada sets the posted rate: Source: Bank of Canada, Posted interest rates offered by chartered banks (5-year conventional mortgage). Checked .Why 5.25%, and why "plus 2 points"?
By May 2021 the average uninsured 5-year rate was 2.11% while the posted rate stood at 4.79%, 2.68 points higher. OSFI replaced the posted-rate floor with a fixed floor of 5.25%, 0.46 points above the posted rate that month, and the federal government applied the same rule to insured mortgages approved from June 1, 2021. The 2-point buffer stayed. OSFI said it would review the floor every December; we found confirmations in 2021, 2022 and 2023, no 2024 or 2025 announcement, and no change. Since contract rates rose above 3.25% in 2022, the buffer, not the floor, has set nearly everyone's test.
By our calculation from the monthly averages, the floor set the test for a typical uninsured borrower in 10 months since June 2021, the last being March 2022. At today's 4.58% uninsured average and a 6.19% posted rate (week of October 28, 2026), the old 2018–2021 rule would give 6.58% and today's rule gives 6.58%: the same number, because the rate + 2 points is above the posted rate. The two rules only give different answers when contract rates are low.
The 2021 change: Source: OSFI, Amendments to the minimum qualifying rate for uninsured mortgages, effective June 1, 2021. Checked .The same rule for insured mortgages approved from June 1, 2021: Source: Department of Finance Canada, Statement: new minimum qualifying rate for insured mortgages (May 2021), effective June 1, 2021. Checked .What happened to the 2020 benchmark change?
It was announced and never used. On February 18, 2020 the Department of Finance said insured mortgages would qualify from April 6, 2020 at a new benchmark: the weekly median 5-year fixed insured rate + 2 points. The pandemic hit weeks later and the change was suspended; we couldn't find Finance's own suspension notice, but the rule never took effect.
So the posted-rate test carried on for about fourteen more months. Between March 2020 and May 2021 the posted rate stayed between 4.79% and 5.04%, while the average insured 5-year rate went from 2.71% to 2.03%. The 2021 rule kept the 2020 idea of adding 2 points to an actual rate, using the borrower's own contract rate instead of a market median, with 5.25% as the backstop.
The February 2020 announcement: Source: Department of Finance Canada, New benchmark rate for qualifying insured mortgages (announced February 2020, not implemented), effective February 18, 2020. Checked .Year by year
| Month | Insured average | Insured tested at | Uninsured average | Uninsured tested at | Posted 5-year |
|---|---|---|---|---|---|
| 2015-01 | 3.06% | 3.06% | 3.09% | 3.09% | 4.79% |
| 2016-01 | 2.78% | 2.78% | 2.86% | 2.86% | 4.64% |
| 2017-01 | 2.71% | 4.64% | 2.72% | 2.72% | 4.64% |
| 2018-01 | 3.25% | 5.14% | 3.33% | 5.33% | 5.14% |
| 2019-01 | 3.69% | 5.34% | 3.77% | 5.77% | 5.34% |
| 2020-01 | 2.91% | 5.19% | 2.97% | 5.19% | 5.19% |
| 2021-01 | 1.92% | 4.79% | 1.96% | 4.79% | 4.79% |
| 2022-01 | 2.52% | 5.25% | 2.61% | 5.25% | 4.79% |
| 2023-01 | 5.02% | 7.02% | 5.20% | 7.20% | 6.49% |
| 2024-01 | 5.27% | 7.27% | 5.67% | 7.67% | 6.89% |
| 2025-01 | 4.29% | 6.29% | 4.59% | 6.59% | 6.49% |
| 2026-01 | 3.94% | 5.94% | 4.33% | 6.33% | 6.09% |
| 2026-08 | 4.12% | 6.12% | 4.58% | 6.58% | 6.09% |
Rules applied from the first full month in force (e.g. the October 17, 2016 insured rule counts from November 2016). Before 2016, insured 5-year fixed borrowers were tested at their contract rate; variable and shorter terms were tested at five-year fixed standards from 2010.
What do people get wrong about the stress test's history?
- "The stress test started in 2018." 2018 is when uninsured loans at federally regulated lenders joined. Insured loans were tested at the posted rate from October 2016, and insured variable borrowers were held to five-year fixed standards from 2010.
- "5.25% is a Bank of Canada rate." It's OSFI's floor, matched in the federal insurance rules. The Bank of Canada's posted rate was the floor from 2016 until June 2021.
- "The floor has gone up since 2021." It hasn't moved. OSFI's rule page, last modified January 29, 2026, still shows 5.25%.
- "The 2020 insured benchmark is in force." It was announced for April 2020 and suspended before it started.
- "Switching lenders at renewal means passing the test again." Not for a straight switch since late 2024 (late 2023 for insured holders), though borrowing more or adding years still does.
What could change next
OSFI said in November 2024 that it would consider whether a prescribed qualifying rate is still needed once its loan-to-income limits are fully in place, and in 2026 it began consolidating B-20 into a single credit-risk guideline without proposing a new rate. Until OSFI announces something, the rule stays as it is. We re-check it before every update and log changes on the methodology page; the open questions are on our "is it going away" guide.
January 2026: B-20 continues alongside loan-to-income limits: Source: OSFI, Quarterly release: LTI limits and B-20 (January 2026), effective January 29, 2026. Checked .What this means for you
- If you qualified for more a few years ago: since June 2021 the rule hasn't changed; what changed is the rate it's applied to (before then, the posted rate set most tests). Run today's numbers on the stress test calculator rather than relying on an old approval.
- If a lender, article or friend calls the posted rate "the stress test rate": that's out of date for every bank and insured loan. Only Alberta's 2018 credit-union guidance still points to it; ask an Alberta credit union which rate it uses.
- If your mortgage dates from before 2018 and you put 20% down: a 5-year fixed taken then was qualified at its contract rate. Renewing with your lender still isn't retested, and a straight switch to another federally regulated lender isn't either, but a refinance or top-up could be your first test. Check with the renewal and switch checker.
- If you're comparing your rate to the floor: below 3.25%, the 5.25% floor sets your test. The qualifying rate calculator shows which arm applies.
- If you're waiting for the next change: the past changes all came with an announcement and an effective date. Follow them on will the stress test be removed?
Frequently asked questions
When did the mortgage stress test start in Canada?
In stages. Insured borrowers taking variable rates or shorter terms had to meet five-year fixed-rate standards from April 19, 2010; all new insured mortgages were tested at the Bank of Canada posted 5-year rate from October 17, 2016 (low-ratio from November 30, 2016); uninsured mortgages at federally regulated lenders were added on January 1, 2018.
When did the qualifying rate become 5.25%?
June 1, 2021, for both uninsured mortgages (OSFI) and insured mortgages approved on or after that date (Department of Finance).
Was the stress test rate ever higher than contract + 2?
Yes. Between 2018 and mid-2021 the floor was the posted 5-year rate, and in 2021–2022 the 5.25% floor sat more than 2 points above the low rates then on offer; the widest gap we computed was 3.11% points in June 2021.
Did the 2020 stress test change happen?
No. The Department of Finance announced a new insured benchmark (the weekly median insured 5-year rate + 2 points) for April 6, 2020, but it was suspended when the pandemic hit and never took effect. The June 2021 rule replaced the posted-rate test instead.
Primary sources
- Government of Canada — Government of Canada takes action to strengthen housing financing (2010) (effective April 19, 2010). Checked .
- Department of Finance Canada — Technical backgrounder: mortgage insurance rules (October 2016) (effective October 17, 2016). Checked .
- OSFI — Final revised Guideline B-20 (letter of October 17, 2017) (effective October 17, 2017). Checked .
- Department of Finance Canada — New benchmark rate for qualifying insured mortgages (announced February 2020, not implemented) (effective February 18, 2020). Checked .
- OSFI — Amendments to the minimum qualifying rate for uninsured mortgages (effective June 1, 2021). Checked .
- Department of Finance Canada — Statement: new minimum qualifying rate for insured mortgages (May 2021) (effective June 1, 2021). Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
- Department of Finance Canada — 2023 Fall Economic Statement, Chapter 1: the Canadian Mortgage Charter (effective November 21, 2023). Checked .
- OSFI — OSFI exempts uninsured mortgage straight switches from the prescribed MQR and implements portfolio LTI limits (effective November 21, 2024). Checked .
- Department of Finance Canada — Mortgage reforms in force: $1.5M insured price cap, 30-year amortization (effective December 15, 2024). Checked .
- Department of Finance Canada — Straight switches and portfolio insurance (effective December 16, 2024). Checked .
- OSFI — Quarterly release: LTI limits and B-20 (January 2026) (effective January 29, 2026). Checked .
- Autorité des marchés financiers (Québec) — Residential hypothecary lending guideline (revised September 2026) (effective September 1, 2026). Checked .
- Bank of Canada — Posted interest rates offered by chartered banks (5-year conventional mortgage). Checked .
- Bank of Canada — Banking and financial statistics: effective rates on new mortgages. Checked .