Mortgage stress test by province: what credit unions must do
The stress test is the same in every province for insured mortgages and bank loans: the greater of the rate + 2 points or 5.25%. Uninsured loans from provincially regulated credit unions and caisses differ: Saskatchewan and Quebec prescribe the same test, Alberta's 2018 guidance used the posted rate, and BC, Ontario, Manitoba and Nova Scotia leave it to lenders.
Is the stress test the same in every province?
For most borrowers, yes. Every insured mortgage (under 20% down) is tested at the greater of the contract rate + 2 points or 5.25% in every province, because the rule is in the federal mortgage-insurance regulations and attaches to the loan, whoever the lender is. Every uninsured mortgage from a bank or other federally regulated lender is tested the same way under OSFI's Guideline B-20.
The one real difference is uninsured mortgages from credit unions and caisses, which are regulated by their province. Each provincial regulator decides whether to prescribe a qualifying rate, and they don't all agree. Note that it's the lender's regulator that matters, not your address: a bank branch in Regina uses OSFI's rule, and an Ontario credit union uses FSRA's.
Insured test in federal regulation: Source: Justice Laws, Insurable Housing Loan Regulations (SOR/2012-282), ss. 5, 6 and 6(3.1), effective February 27, 2025. Checked .FCAC: lenders that aren't federally regulated "may also" ask you to pass a stress test. Source: Financial Consumer Agency of Canada, Preparing to get a mortgage: how the stress test impacts your qualification, effective October 15, 2025. Checked .The terms this page uses
- Credit union or caisse
- A co-operative lender regulated by its province. Desjardins caisses are Quebec's; ATB Financial in Alberta is a provincial Crown corporation, not a credit union.
- Federally regulated lender
- A bank or federally regulated trust or loan company on OSFI's list. OSFI's Guideline B-20 and its qualifying rate apply to all of them.
- Prescribed rate
- A qualifying rate the regulator writes into its guideline, so lenders must use it (Saskatchewan and Quebec).
- Principles-based guidance
- Guidance that asks lenders for 'appropriate' buffers or stress tests without fixing a number (BC, Ontario).
- Straight switch
- Moving a mortgage to a new lender at renewal with the same balance and amortization and no equity taken out.
What each province's credit-union regulator requires
| Province | Regulator | What it prescribes | Status | Straight-switch exemption |
|---|---|---|---|---|
| British Columbia | BC Financial Services Authority (BCFSA) | No prescribed rate. Credit unions must apply 'appropriate buffers and adjustments' for rate changes and review them regularly. [BC Financial Services Authority] | Principles: No set rate: lender's own buffer | n/a |
| Alberta | Credit Union Deposit Guarantee Corporation (CUDGC); ATB Financial is a provincial Crown corporation | Credit unions: the greater of the contract rate + 2 points or the Bank of Canada 5-year benchmark (2018 guidance). Whether that guidance is still current is unconfirmed; the 2026 standards prescribe no rate. [Credit Union Deposit Guarantee Corporation][Credit Union Deposit Guarantee Corporation][ATB Financial] | Unconfirmed: Older formula (posted-rate floor), unconfirmed | Not in the text |
| Saskatchewan | Credit Union Deposit Guarantee Corporation (Saskatchewan), under FCAA oversight | The greater of the contract rate + 2 points or 5.25% (Guideline 2015-01, revised June 2021). Credit unions must follow it. [Credit Union Deposit Guarantee Corporation] | Prescribed: Same formula as OSFI | Not in the text |
| Manitoba | Deposit Guarantee Corporation of Manitoba (DGCM) | No prescribed rate found. The standards framework asks credit unions to consider adopting B-20 practices. [Deposit Guarantee Corporation of Manitoba] | Principles: No set rate: lender's own buffer | n/a |
| Ontario | Financial Services Regulatory Authority of Ontario (FSRA) | Principles-based, no prescribed rate. FSRA expects ratios to use 'appropriate stress tests' but doesn't define the rate. [Financial Services Regulatory Authority of Ontario] | Principles: No set rate: lender's own buffer | n/a |
| Quebec | Autorité des marchés financiers (AMF): Desjardins caisses and Quebec trust companies | The greater of the contract rate + 2 points or 5.25% (guideline revised September 2026, reviewed each December). [Autorité des marchés financiers] | Prescribed: Same formula as OSFI | No |
| New Brunswick | Financial and Consumer Services Commission (FCNB) | No published qualifying-rate rule found. | Not found: No published rule found | n/a |
| Nova Scotia | Credit Union Deposit Insurance Corporation (CUDIC) | No prescribed rate found. The standards framework points to B-20 as an example of prudent practice. [Nova Scotia Credit Union Deposit Insurance Corporation] | Principles: No set rate: lender's own buffer | n/a |
| Prince Edward Island | PEI Credit Union Deposit Insurance Corporation | No published qualifying-rate rule found. | Not found: No published rule found | n/a |
| Newfoundland and Labrador | Credit Union Deposit Guarantee Corporation (NL) | No published qualifying-rate rule found. | Not found: No published rule found | n/a |
'Not found' means we searched the regulator's publications on November 1, 2026 and found no prescribed rate. It doesn't mean lenders there skip the test: many credit unions apply their own buffer or follow B-20 voluntarily. Ask yours.
Can the same household pass at one credit union and fail at another?
Yes, when one province prescribes the federal formula and the other leaves the buffer to the lender. Here is one condo buyer with 20% down at two credit unions: one in Saskatchewan, where the regulator prescribes contract + 2 points or 5.25%, and one in Ontario, where FSRA sets no rate and, for this example, the lender qualifies at the contract rate.
A buyer earning $124,000, with $165,000 down, $350 a month of other debts and $380 a month in condo fees, offered 4.58% for 5 years (the Bank of Canada's average for new uninsured 5-year fixed loans; a credit union's own rate may differ), 25-year amortization.
| Income | $124,000 |
|---|---|
| Down payment | $165,00022.9% of the price, so the loan is uninsured and provincial rules apply |
| Price and mortgage | $720,000, $555,000 loan |
| Condo fees, other debts | $380 and $350 a month50% of condo fees counts in GDS |
| Property tax, heating | 0.8% of price a year, $100 a monthOur planning estimates |
| Qualifying rate: Saskatchewan vs Ontario | 6.58% vs 4.58%Prescribed formula vs this lender's contract rate |
| Payment the lender tests | $3,744 vs $3,097The real payment is $3,097 in both |
| GDS | 43.7% vs 37.4%39% limit used for both |
| TDS | 47.1% vs 40.8%44% limit used for both |
| Verdict | Fails in Saskatchewan; passes at the Ontario lenderMost it passes at: $654,600 vs $746,100 |
Nothing about the buyer changes, and the real payment is the same $3,097 either way. What changes is the payment each lender pretends you make: $648 a month more under Saskatchewan's rule, which pushes GDS from 37.4% to 43.7%. The most each rule lets this buyer spend is $91,500 apart. Open the Saskatchewan case to see the fail; in the calculator, "How the lender qualifies you" is the only setting that differs.
Read the Ontario column as the far end of what a principles-based regulator leaves open, not as what any particular credit union does. FSRA expects credit unions to use "appropriate stress tests" in their ratios; it just doesn't say what rate. Uninsured lenders also set their own GDS and TDS limits, so we've used CMHC's 39% and 44% in both columns.
Open the Ontario case in the calculator →Computed November 1, 2026.
How much difference can the lender's rule make?
Here is the same buyer with no price in mind, qualified four ways. Only the first two are rules we found in a regulator's text; the last two show what a principles-based regulator allows a lender to choose.
| How the lender qualifies the loan | Most you could buy | Versus the federal test |
|---|---|---|
| Federal formula (banks; SK and QC credit unions): 6.58% | $654,600 | — |
| Contract + 2 or the posted 5-year rate (Alberta 2018 guidance): 6.58% | $654,600 | — |
| Lender's own buffer of 1 point (example only): 5.58% | $697,400 | +$42,800 |
| Contract rate, no buffer (example only): 4.58% | $746,100 | +$91,500 |
Computed by our engine with CMHC's 39% / 44% ratios, property tax 0.8% of price, $100 heating and $380 condo fees. The posted 5-year rate was 6.19% on October 28, 2026.
At today's rates Alberta's 2018 formula lands on the same number as the federal one, because 4.58% + 2 points is above the 6.19% posted rate. The two would only differ for a lender offering less than 4.19%. A lender with no buffer would let this household buy noticeably more. That isn't free money: it's the same income carrying a bigger loan, with no cushion if rates are higher at renewal.
What happens if you switch between a bank and a credit union at renewal?
This is where provincial rules bite years later. The federal straight-switch exemptions are written for moves between federally regulated lenders, and the provincial texts we read don't copy them:
| The move | Retested? | Why |
|---|---|---|
| Uninsured: bank to another bank or federally regulated lender | Not expected | OSFI no longer expects the qualifying rate on these switches, from November 21, 2024. A lender can still choose to requalify you. |
| Uninsured: bank to a Saskatchewan credit union | It can be | CUDGC's guideline prescribes the formula and has no straight-switch exemption in its text. |
| Uninsured: bank to a Desjardins caisse | It can be | The AMF guideline prescribes the formula and has no straight-switch exemption. |
| Uninsured: bank to a credit union in BC, Ontario, Manitoba or Nova Scotia | Lender's policy | No prescribed rate, so no exemption either way: the credit union decides. |
| Uninsured: credit union to a bank | Ask the bank | OSFI's exemption is described for switches between federally regulated lenders; we couldn't confirm it covers a loan arriving from a credit union. |
| Insured, high-ratio (under 20% down) | Not expected | Canadian Mortgage Charter (November 21, 2023): insured holders switching at renewal shouldn't have to requalify. It's an expectation of lenders, not a law; Quebec's AMF guideline has no switch exemption, so ask a caisse. |
| Low-ratio (portfolio) insured, from a credit union | Not covered by the 2024 rule | The December 16, 2024 regulation requires the previous lender to be federally regulated and the loan to have been tested at the qualifying rate. |
If you might move your mortgage in five years, the lender you pick today decides which of these rows you'll be in. Run the numbers on the renewal and switch checker, which shows whether you'd pass if you were retested.
Province by province
British Columbia
BCFSA's credit-union mortgage guideline (2015) asks for "appropriate buffers and adjustments" for rate changes, reviewed regularly, without fixing a number. BCFSA said in its 2023/24 roadmap that it would update the guideline; we found no revised version.
BC guideline: Source: BC Financial Services Authority, Residential mortgage underwriting guideline (credit unions), effective January 1, 2015. Checked .Alberta
The Credit Union Deposit Guarantee Corporation's 2018 guidance set the greater of the contract rate + 2 points or the Bank of Canada 5-year benchmark. We couldn't confirm whether it still applies; the 2026 standards of sound practice don't prescribe a rate. If it does, Alberta credit-union borrowers with low contract rates are tested at the posted rate (6.19% today), above the federal 5.25% floor. ATB Financial, a provincial Crown corporation, said in 2018 that it applies the stress test to uninsured mortgages; we couldn't confirm its current practice.
Alberta 2018 guidance: Source: Credit Union Deposit Guarantee Corporation (Alberta), Residential mortgage underwriting guidance G#03-2018, effective March 1, 2018. Checked .Saskatchewan
CUDGC's Guideline 2015-01, revised June 2021, requires the same buffer of 2 points and floor of 5.25% as OSFI, and credit unions must follow it. Its text has no straight-switch exemption.
Manitoba
DGCM's standards framework asks credit unions to consider adopting B-20 practices. We found no mortgage-specific guideline with a rate.
Manitoba framework: Source: Deposit Guarantee Corporation of Manitoba, Standards of sound business practice guidance framework, effective July 1, 2022. Checked .Ontario
FSRA's residential mortgage guidance for credit unions (effective February 1, 2021) is principles-based: it expects "appropriate stress tests" in the debt-service ratios, and says HELOC payments should be stress tested at the qualifying rate, but doesn't define that rate. Its scheduled review date has passed and we found no newer version.
Quebec
The AMF's residential lending guideline, revised in September 2026 and covering Desjardins caisses and Quebec trust companies, uses contract + 2 points or 5.25%, reviewed each December. It also caps the non-amortizing HELOC portion at 65% of the home's value. Unlike OSFI it has no straight-switch exemption, so moving an uninsured mortgage to a caisse at renewal can mean requalifying.
AMF guideline: Source: Autorité des marchés financiers (Québec), Residential hypothecary lending guideline (revised September 2026), effective September 1, 2026. Checked .Atlantic Canada
Nova Scotia's deposit insurer points credit unions to B-20 as an example of prudent practice without prescribing a rate. We found no published qualifying-rate rule for New Brunswick, Prince Edward Island or Newfoundland and Labrador, which doesn't mean their credit unions skip the test.
Nova Scotia framework: Source: Nova Scotia Credit Union Deposit Insurance Corporation, SSBP guidance framework, effective June 1, 2024. Checked .What do people get wrong about credit unions and the test?
- "Credit unions are exempt from the stress test." Not on insured loans, which use the federal test everywhere, and not in Saskatchewan or at Quebec caisses, where the regulator prescribes it. Elsewhere, regulators either expect a buffer without naming one or publish no rule we could find.
- "My province has its own insured stress test." No province changes the insured test. It's federal and identical everywhere.
- "Where I live decides which rule applies." The lender's regulator decides. A bank in any province uses OSFI's rule.
- "No prescribed rate means no stress test." BCFSA asks for "appropriate buffers" and FSRA for "appropriate stress tests". The rate is the credit union's choice, so ask what it is.
- "Switching to a credit union at renewal is like switching banks." The federal straight-switch exemption doesn't bind provincial lenders, and Quebec's and Saskatchewan's texts don't include one.
What this means for you
- Under 20% down, anywhere: the province doesn't matter. Your test is contract + 2 or 5.25% at every lender. Run it on the stress test calculator.
- 20%+ down at a bank: the same federal test in every province.
- 20%+ down at a credit union: ask how it qualifies you, then set "How the lender qualifies you" in the calculator to the contract rate or the lender's own rate. The worked example shows how far apart the answers can be.
- In Alberta: ask whether the credit union still uses the posted 5-year rate as its floor. At the average uninsured rate it doesn't change the answer today, but it tests any rate below 4.19% harder than the federal formula.
- Renewing, or thinking of moving lenders: a straight switch between federally regulated lenders isn't stress tested, but a move to a credit union or caisse may be, and a move from one may not be covered. Check with the renewal and switch checker and read how the straight switch works.
Frequently asked questions
Do credit unions have to use the stress test?
For insured mortgages, yes: the federal test applies to every insured loan. For uninsured mortgages it depends on the province. Saskatchewan's and Quebec's regulators prescribe the same formula as OSFI; BC, Ontario, Manitoba and Nova Scotia let each credit union set its own buffer.
Does Desjardins use the stress test?
Desjardins caisses are regulated by Quebec's AMF, whose guideline (revised September 2026) uses the contract rate + 2 points or 5.25%. The AMF guideline has no straight-switch exemption.
Is the stress test different in Alberta?
For insured loans and banks, no. For Alberta credit unions, the last published guidance (2018) used the contract rate + 2 points or the Bank of Canada posted 5-year rate; we couldn't confirm whether that is still current.
Is the stress test different in Ontario?
Not for insured loans or bank mortgages. Ontario credit unions follow FSRA guidance that expects appropriate stress tests but sets no rate, so each credit union chooses how to qualify uninsured loans.
Can I switch from a bank to a credit union at renewal without the stress test?
Not reliably. The federal straight-switch exemption doesn't bind provincial lenders, and Saskatchewan's and Quebec's guidelines have no switch exemption. Insured mortgages are the main exception: the Mortgage Charter expects lenders not to requalify insured holders who switch at renewal, though a Quebec caisse may still ask.
Primary sources
- Justice Laws — Insurable Housing Loan Regulations (SOR/2012-282), ss. 5, 6 and 6(3.1) (effective February 27, 2025). Checked .
- OSFI — Guideline B-20: Residential mortgage underwriting practices and procedures (effective January 1, 2018). 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 — 2023 Fall Economic Statement, Chapter 1: the Canadian Mortgage Charter (effective November 21, 2023). Checked .
- Department of Finance Canada — Straight switches and portfolio insurance (effective December 16, 2024). Checked .
- BC Financial Services Authority — Residential mortgage underwriting guideline (credit unions) (effective January 1, 2015). Checked .
- Credit Union Deposit Guarantee Corporation (Alberta) — Residential mortgage underwriting guidance G#03-2018 (effective March 1, 2018). Checked .
- Credit Union Deposit Guarantee Corporation (Alberta) — Standards of sound business and financial practices (2026) (effective July 3, 2026). Checked .
- ATB Financial — Qualifying for a mortgage in 2018 (ATB's own article) (effective October 29, 2018). Checked .
- Credit Union Deposit Guarantee Corporation (Saskatchewan) — Guideline 2015-01: Residential mortgage underwriting (Appendix I) (effective June 1, 2021). Checked .
- Deposit Guarantee Corporation of Manitoba — Standards of sound business practice guidance framework (effective July 1, 2022). Checked .
- Financial Services Regulatory Authority of Ontario — Residential mortgage lending guidance for credit unions (CU0063INT) (effective February 1, 2021). Checked .
- Autorité des marchés financiers (Québec) — Residential hypothecary lending guideline (revised September 2026) (effective September 1, 2026). Checked .
- Nova Scotia Credit Union Deposit Insurance Corporation — SSBP guidance framework (effective June 1, 2024). Checked .
- Financial Consumer Agency of Canada — Preparing to get a mortgage: how the stress test impacts your qualification (effective October 15, 2025). 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 .