As of March 13th, 2020, a previously announced change to the mortgage stress test for insured mortgages has been suspended. The proposed changes were announced on Februrary 18th, 2020 by Minister Morneau and included a change to the Benchmark Rate for insured mortgages to be set to the weekly median 5-year fixed insured mortgage rate as calculated by the Bank of Canada plus an additional 200 basis points, to take effect April 6th, 2020. These changes are now suspended.
The Benchmark Rate for insured mortgages will continue to be the 5-Year Benchmark Rate currently at 5.19% until further notice.
The Benchmark Rate for uninsured mortgages was not part of the proposed changes and will continue to remain at the 5-Year Benchmark Rate of 5.19%.
To pass the stress test, you must still be able to afford your mortgage payments if your interest rate increases to a value called the qualifying rate.
If your mortgage is uninsured (generally, if your down payment is 20% or higher), then the qualifying rate is the higher of
If your mortgage is insured (required if your down payment is below 20%), then the qualifying rate is the higher of