Understanding

the

mortgage

stress

test

in

Canada

What is the mortgage stress test and how does it affect your borrowing capacity?

The stress test is a federal measure aimed at ensuring you can continue to pay your mortgage if interest rates rise.

How is it calculated?

Lenders must qualify you at a rate higher than your contract rate (either the contract rate + 2%, or the benchmark rate of 5.25%, whichever is higher). This reduces the maximum amount you can borrow.

Approval strategies

If the stress test blocks your project in Sorel-Tracy, a mortgage broker in Montérégie can offer alternatives, such as extending the amortization or exploring provincial lenders not subject to the same federal rules.

Ready to take the next step? Our team of partner brokers is available to review your unique situation and provide tailored advice that aligns with your long-term financial goals.