What is the mortgage stress test, and how does it affect how much I can borrow?

Roger Carroll ✓ Verified
Real Mortgage Associates Inc. operating as RMA Real Mortgage Associates · Mississauga, Ontario

The mortgage stress test is a rule that requires lenders to qualify you at an interest rate 2% above your contract rate (or a minimum of 5.25%). In practice this means you must show you could afford higher payments. Because of the stress test, your maximum loan amount is lower: you have to prove the mortgage fits your budget even if rates rise.

Answered October 2026