Lenders qualify you at a higher rate than your actual rate to make sure you can handle increases.
Free quick-reference guide (PDF, courtesy of TRREB). Save or print for easy reference.
⬇ Mortgage Stress Test (PDF)The stress test requires you to qualify at the higher of your contract rate + 2% or the 5.25% benchmark. It affects how much you can borrow — even though you pay your actual (lower) rate.
| ✓ Applies to most federally regulated mortgages |
| ✓ Both insured and uninsured mortgages |
| ★ Protects you from over-borrowing |
| ★ Builds a buffer against future rate increases |
| → Your lender automatically applies the qualifying rate |
| → Plan your budget around the qualifying amount, not just today's rate |
Common questions about this program.
Switching lenders at renewal can trigger it; staying with your lender often does not.
Contact Tej Thakor, Broker of Record at Royal LePage Terra Realty, for professional real estate guidance across the GTA and surrounding areas — in English, Hindi & Gujarati.
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