Would you pass the mortgage stress test?

For uninsured mortgages subject to OSFI's minimum qualifying rate, borrowers are qualified at the greater of 5.25% or the contract rate plus 2 percentage points. The qualifying rate should always be checked against the current rules when using the calculator.

The lender tests whether you could afford the mortgage at a higher rate than the rate you will actually pay. This higher theoretical payment is used in the debt-service calculation and can reduce your maximum mortgage amount.

Not every mortgage is treated the same way. Federal rules apply to federally regulated lenders, while some transactions, lender types and provincially regulated institutions can be subject to different requirements.

A straightforward renewal with the same lender generally does not require a new qualification. Certain straight switches to another federally regulated lender may also be exempt when the loan amount and amortization are not increased.

There is no single percentage. The effect depends on your mortgage rate, income, debts, property costs and down payment because the calculator tests your budget using a higher qualifying payment.